Account Takeover 

What is account takeover (ATO)?

Account Takeover (ATO) is an attack in which cyber criminals gain unauthorized access to a user’s account. Companies need proper account takeover solutions to prevent hackers from gaining unauthorized access. Compromised accounts may target email, social media, online banking, and enterprise systems. Once attackers have control, they can exploit the account for fraudulent activities such as data theft, ransomware, and malware.

The attackers typically obtain the user’s credentials through various methods, including phishing, credential stuffing, social engineering, or buying stolen credentials from the dark web. After gaining access, the threat actors can lock out the original user, perform unauthorized transactions, steal proprietary information, and carry out activities that seem legitimate to the unsuspecting victims. 

Account Takeover (ATO) involves cyber criminals seizing control of user accounts, threatening sensitive data and systems across various platforms.

Importance of account takeover protection

Implementing account takeover solutions is vital for protecting against unauthorized access, financial loss, and reputational damage.

1. Prevent unauthorized access to authorized domains: When individuals or enterprises implement practices to secure accounts, they can help prevent attackers from accessing sensitive information and critical systems within an organization.
2. Financial loss prevention: Cyber criminals often target corporate financial accounts in ATO attacks. Unauthorized access can lead to substantial financial losses majorly impacting the bottom line.
3. Reputation management: Account takeovers can severely damage an organization’s reputation. Customers and clients may lose trust in the company’s ability to safeguard their data, resulting in lost business and negative publicity. Examples of enterprises that suffered from ATO attacks include Microsoft Azure, Cencora, and, SolarWinds FirstMac Limited.
4. Regulatory compliance: Many industries have stringent data protection regulations such as GDPR or HIPAA. CISOs, compliance officers, or risk managers who fail to protect against account takeovers can lead to non-compliance, hefty fines, and legal consequences.

Common methods of account takeover

Attackers employ various sophisticated techniques to take over accounts, including the following:

1. Phishing

Phishing happens when cyber criminals send out fake emails or messages that look real, tricking people into giving up their login details. These messages seem to be from trusted sources like banks, service providers, or colleagues. You can subdivide phishing into several categories. All of hese methods are all designed to exploit trust and trick people into revealing crucial information:

• Spear phishing: Spear phishing targets specific individuals, often using personal details to make the message more convincing and believable.
• Whaling: This focuses on high-profile individuals within an organization, such as a C-level executive (CEO, CFO) or Payroll Manager to gain access to valuable accounts and sensitive information.
• Clone phishing: In this case, attackers duplicate a legitimate email that the user has received previously but alter it with malicious links or attachments. Cyber criminals can also duplicate a social media profile like Facebook or Instagram and send messages to the user’s friends asking for money.
• Smishing: A tactic that uses SMS, or text messaging, to get you to download malware, share sensitive information, or send money to cyber criminals. The majority of companies have experienced smishing in the past year. Cyber criminals know that you are more likely to click on a link in a text message and that spam filters make it more difficult for fraudulent phone calls to go through. 

2. Credential stuffing

Credential stuffing is when cyber criminals use stolen usernames and passwords, often bought on the dark web, to try to break into multiple accounts. They take advantage of people reusing passwords across different sites. By using automated tools, they can quickly test these credentials on various websites, making it easier to take over accounts successfully.

3. Man-in-the-Middle attacks (MITM)

In Man-in-the-Middle (MITM) attacks, the cyber criminals get in the middle of communication between you and a website, secretly capturing your login details and other sensitive information. They can pull this off using several techniques, each allowing the attacker to gather valuable information without you even suspecting it.

• Wi-Fi eavesdropping: They set up fake Wi-Fi hotspots to intercept the data you’re sending.
• DNS spoofing: They redirect you to bogus websites designed to steal your credentials.
• SSL stripping: They downgrade secure HTTPS connections to unencrypted HTTP, making capturing your sensitive data easier.

4. Social engineering

Social engineering involves manipulating individuals into divulging confidential information by playing on their emotions or trust. Cyber criminals often pretend to be someone or something the victim knows or uses. They employ clever psychological tricks to gain access to sensitive accounts. These techniques include:

• Pretexting: Imagine getting a call or text message from someone claiming to be from your bank. They create a pretense for the call or message, such as needing to verify your identity due to suspicious activity in your account. They will then ask you to log in to your account or give them your credit card number, password, or PIN number. 
• Baiting: This might involve rewarding you with a lucrative payment for a freelance gig or a game to try out. Instead of receiving a bank transfer or a fun game, the attacker will send you malware or spyware and get access to your computer system as a gateway to your data.
• Quid pro quo: With this technique, the attacker might offer you something in return for your information. For example, they could pretend to be tech support, offering to fix a fake issue on your computer in exchange for your login details.

Always contact the sender directly using methods that you have on file before giving any confidential information. Remember, social engineering is designed to elicit a strong emotion that drives you to act hastily. 

5. Malware

Malicious software, or malware, is a deceitful way for attackers to access your accounts. Malware includes keyloggers, spyware, and Trojans that can capture login credentials from an infected device, granting the attacker access to the victim’s accounts. 

• Keyloggers: This is like a digital spy sitting quietly on your device and recording every keystroke you make. The keylogger captures all the information, whether you’re typing your password, entering your credit card number, or sending a private message. 
• Spyware: Spyware captures a broader range of data than keyloggers, including passwords, screenshots and browsing history. It’s designed to be discreet, so you might not notice any changes to your device’s performance.
• Remote Access Trojans (RATs): RATs are particularly dangerous because they give the attacker complete control over your device, as if they were physically present. With a RAT, a cyber criminal can steal your login credentials and install other types of malware on your device. Then they can spy on you through your webcam or even use your device to attack others. Cyber criminals can spread this malware through phishing emails or malicious downloads, tricking you into installing it accidentally. 

Signs and impacts of account takeover

Early account takeover detection makes it easier to mitigate damage. Which common indicators should you be aware of?

1. Unusual account activity sudden changes in account settings, unfamiliar transactions, or login attempts from unusual locations or devices.
2. Account lockouts: repeatedly getting locked out of an account despite entering the correct credentials can indicate that someone else has gained access and changed the password.
3. Unauthorized password changes: receiving notifications about password changes that were not initiated by the account owner.
4. Missing emails or messages: in the case of email accounts, missing messages or unexplained deletions can be a sign that an attacker is trying to cover their tracks.

Impact of account takeover

When an account takeover happens, the impact can have a ripple effect, leading to severe consequences:

1. Financial loss: If a cyber criminal gains control of an account, they can execute unauthorized transactions, drain funds, or further manipulate financial data. For businesses, this can mean large-scale theft or manipulation of critical financial records, resulting in significant financial losses. 
2. Data breaches: Once an attacker gains access to an account, they can often use it as a master key to infiltrate other systems and databases. This attack can lead to widespread data breaches, exposing sensitive information like personal data, intellectual property, and trade secrets. 
3. Reputational damage: The fallout from an account takeover can devastate a company’s reputation. Customers, partners, investors, and suppliers may lose trust completely, especially those companies that promise to keep their information secure, like CrowdStrike or Microsoft Cloud. Businesses who have experienced ATO might see a drop in sales or lose key clients after news of the breach spreads as customers look for more secure alternatives.
4. Operational disruption:  Disruption of normal business operations as security teams attempt to contain and resolve the breach. This factor can lead to downtime, reduced productivity, and significant costs associated with returning operations to ‘business as usual’. Customers around the world who are dependent on the breached service compound this, causing them to lose productivity and revenue. 
5. Legal and compliance issues: Companies may face legal action from affected customers or partners and may also be subject to fines and penalties for failing to protect sensitive information, mainly if they operate in highly regulated industries. For example, customers might sue companies for exposing their data or regulators may fine enterprises for failing to adhere to data protection laws.

These five issues illustrate the importance of practical security measures to prevent account takeovers, as the consequences can be far-reaching and costly.

Preventative measures for account takeover

Protecting against account takeover vulnerability requires a multifaceted approach, combining technological solutions, user education, and effective security strategies and account takeover prevention techniques, including the following: 

1. Dark web monitoring

Enterprises can stay ahead of the game by proactively monitoring the dark web for stolen credentials and other warning signs of trouble. By doing this, you’ll get early alerts and can take action to protect your accounts before anything goes wrong. Dark web monitoring services can help identify if any employee or customer credentials have been compromised.

2. Biometric authentication 

Using physical features of the account owner like fingerprint, iris scan, fingerprint, facial patterns, or iris or retinal patterns to verify identity during the login process. This information must be stored in the account during the setup process.

3. Strong password policies

For stronger security, security officers and IT managers encourage using complex, unique passwords for different accounts. Passwords should be difficult to guess. Additionally, password managers can help users manage their passwords securely, reducing the likelihood of password reuse.

4. User education and training

By regularly educating employees and contractors about the risks of phishing, social engineering, and other common attack methods, companies can help reduce account takeover vulnerability. Training sessions and awareness campaigns can significantly reduce the likelihood of users falling victim to these tactics. Popular topics in these sessions may include:

• Recognizing phishing emails and malicious links.
• Understanding the importance of password security.
• Being aware of social engineering tactics.

5. Regular account takeover monitoring and alerts

Enterprises can implement monitoring tools to detect unusual account activity and set up alerts for suspicious behaviors. Early detection can help mitigate the damage caused by an account takeover. Monitoring should include:

• Unusual login attempts (e.g., from unusual locations or devices such as from an iPhone when the contractor uses Android only.
• Deviant transaction patterns, such as an employee from Australia suddenly conducting financial activity during European working hours.
• Sudden changes in account settings include modified user names or password reset requests.

6. Implementing zero trust security

Companies that take a Zero Trust approach remain cautious, even within their own enterprise. The approach assumes that threats can come within your network and that safeguards should be implemented to constantly verify the identity and integrity of devices and users, regardless of their location. Critical components of Zero Trust include:

• Micro-segmentation: Break your network into smaller sections it’s easier to contain if a breach happens.
• Least privilege access: Only give people the access they need to do their jobs—nothing more. Specific Access Management systems can increase or remove privileges using role-based access.
• Continuous monitoring: Regularly assess and verify the security status of users and devices, including company-owned or external devices.

7. Comprehensive incident response plan

To help prevent account takeovers, CISOs and risk officers can develop and maintain a dedicated and comprehensive incident response plan. This strategy should outline the steps to follow if a breach occurs, including how to communicate and what actions to take to minimize damage. This plan may include the following main elements:

• Preparation: Set up policies, procedures, and tools so you’re ready to respond.
• Identification: Detect and confirm when a security incident has happened.
• Containment: Stop the incident from spreading and limit its impact.
• Eradication: Remove the root cause of the incident.
• Recovery: Restore affected systems and services to normal operation.
• Lessons learned: Review and analyze the incident to improve how you respond in the future.

If you want to be proactive about ATO incidents or need more information about how an account takeover could impact your business, consider talking to us about how Lunar can help. Reach out to one of our data experts to learn how Lunar proactively uncovers hidden breaches, stolen data, and emerging threats before they wreak havoc.