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Account takeover fraud involves criminals acquiring unauthorised access to individuals’ financial accounts, using this access to steal money or initiate unauthorised purchases. Victims may suffer serious repercussions, including substantial financial losses and credit score damage.
Account takeover fraud involves unauthorised access to a victim’s bank account, often leading to bank transfer scams. Fraudsters gain access through various means, like phishing or malware, and subsequently transfer funds from the account. Unaware of the breach, victims are often shocked to find their funds missing. Action Fraud emphasises the importance of strong, unique passwords and regular account monitoring to prevent such incidents. With the rise of digital banking, this type of fraud has seen an uptick, highlighting the need for increased vigilance and robust security measures.
According to data released by Action Fraud, the UK’s dedicated fraud and cybercrime reporting centre, account takeover fraud cases surged by 34% in 2020 compared to the previous year. Cifas, revealed that 1 in 10 UK residents fell prey to this type of fraud. The Financial Conduct Authority (FCA) disclosed a staggering 76% increase in bank transfer scams during the same period, with losses amounting to £363 million, a figure inclusive of account takeover fraud.
Criminals are elevating their tactics, resorting to sophisticated methods that make detecting and preventing account takeover fraud an increasingly difficult task. They often utilise stolen personal details including names, addresses, and birth dates to access your accounts. In other instances, malware or phishing scams serve as a pathway to infiltrate your accounts.
Dormant and inactive accounts are easy targets for fraudsters, mainly due to infrequent monitoring and outdated contact information. Criminals can effortlessly change the existing details, seize control of the account, and undertake transactions without triggering alerts. When fraudsters gain access to dormant accounts, their actions can have extensive and devastating consequences.
Not only are they able to tap into or increase overdraft facilities but can also apply for personal loans in the account holder’s name. Moreover, they have the capability to remortgage properties linked to the account, apply for new credit cards, and open additional current and savings accounts, further entangling the victim in financial complications. The impact extends to the existing funds in the account, which become vulnerable to unauthorised bank transfers and payments, leading to significant financial losses and emotional distress for the victims.
In addition to being less frequently monitored, dormant and rarely used accounts often have outdated contact information, making it easier for the fraudsters to change the information and take control of the account. This can lead to serious consequences, as the victim may not even realise that their account has been compromised until it is too late.
To protect yourself from account takeover fraud, it is essential to be vigilant and proactive in monitoring your financial accounts. Here are some steps you can take:
Account takeover fraud is a serious threat in the UK and taking steps to protect yourself and your finances is essential. By being vigilant and proactive in monitoring your accounts, protecting your personal information, and reporting fraud immediately, you can reduce your risk of becoming a victim of this type of crime.
If you suspect you have been a victim of account takeover fraud, it is important to report it immediately. You can report fraud to the UK’s national fraud and cybercrime reporting centre, Action Fraud, by calling 0300 123 2040 or by visiting their website at www.actionfraud.police.uk
With billions in damages yearly, falling victim can devastate your finances and mental well-being. Take control of your financial security today.
Watch Your Pocket® is a team of experts dedicated to raising awareness about fraud and equipping individuals with the knowledge and tools they need to protect themselves.
