How to Protect Yourself from Bank Account Takeover Fraud

Digital banking capabilities make everyday money management quicker and more convenient than ever before. But financial tools and apps also have a dark side: They enable criminals to target your money in new ways.

Account takeover fraud (ATO) is one of the fastest-growing threats in banking. This type of fraud involves a bad actor gaining direct access to your account and your money.

Maintaining bank security in a digital world requires understanding how these schemes work and what signs to look for.

What Is Account Takeover Fraud?

Account takeover fraud is a type of social engineering scam that involves a criminal gaining unauthorized online account access or control of a financial profile. The fraudster might transfer money, change account details or make payments without your knowledge or permission.

Scammers gain access to your accounts by stealing your login credentials through phishing emails, fake websites or data breaches. Once they do, they are likely to lock you out of your account by changing your password or contact information.

Account takeover fraud is different from identity theft. Identity theft involves using someone’s personal information to open new accounts in their name, while account takeover attacks are about gaining access to your existing bank accounts.

Accessing your bank accounts gives scammers direct access to funds. And modern accounts are typically connected to payment apps that enable scammers to send money quickly and easily.

How Account Takeover Fraud Happens: Common Scam Tactics

Scammers use a number of fraudulent activities to conduct account takeover fraud. Knowing about these methods will help you avoid becoming a victim of this crime:

• Phishing, smishing and vishing impersonation attempts: Scammers use email (phishing), text messages (smishing) or phone calls (vishing) to communicate from what appears to be a trusted organization, such as your financial institution. These messages may urgently request that you “verify” your online account by clicking a link that leads to a fake banking website, which captures your login attempts and allows the fraudsters to gain unauthorized access to your account.
• Credential stuffing and reused passwords: Reusing passwords on multiple websites puts you at risk. Fraudsters who steal your username and password from a data breach on one platform often use automated tools to test them on others.
• Malware, spyware and compromised devices: Downloading an app or clicking a link from an untrustworthy source can have big consequences, such as triggering the installation of malicious software on your device that can track keystrokes to capture your login information.
• SIM swap scams and intercepted security codes: A SIM swap scam involves fraudsters tricking your mobile carrier into transferring your phone number to a new SIM card. The criminals can then intercept one-time passcodes that the bank sends you for account verification.
• Why urgency and pressure are red flags: A sense of urgency is almost always present in these tactics. Fraudulent messages typically demand that you act immediately without verifying the legitimacy of the communications.

How Scammers May Use Payment Apps Like Zelle® During Account Takeover Attempts

Payment apps like Zelle® are legitimate tools that many banking customers use to send money quickly and easily¹. Scammers often misuse these tools during account takeover schemes, directing you urgently to send money to fix an invented problem.

An example is a scammer impersonating your bank and sending you an email with a dire message about suspicious activity on your account. It might tell you to quickly send money to a specific “secure” account using a payment app, which is actually controlled by the criminals.

Common scenarios include:

• Fake bank scam alerts directing you to make an immediate funds transfer
• Customer support or law enforcement impersonators telling you to send money
• Demands to move money quickly to “protect” your account

Scammers love to pursue scams involving fast payment systems because these tools process transactions in real time, making them hard to reverse. Only send money to people and small businesses you trust, and make sure to check that you’ve used the correct email address or U.S. mobile number when sending money digitally.

Signs Your Bank Account May Have Been Taken Over

You can react quickly to account takeover fraud if you recognize the early warning signs. Here are key indicators to watch for:

• Unexpected changes to your password or contact information
• Unrecognized transactions in your account, including peer-to-peer payments
• Becoming locked out of your online bank or mobile banking account
• Receiving verification codes for your bank that you didn’t request
• Receiving messages demanding you take immediate action

If something seems suspicious, trust your gut and investigate the issue right away. Small changes or unexpected communications can be a sign of big problems. If you think you’ve been the victim of a scam, please contact the Seacoast Bank customer support team at 1-800-706-9991.

How to Protect Yourself from Account Takeover Fraud

With a few key strategies, you can learn how to prevent account takeover fraud in this era of digital banking and ensure a secure online banking experience.

• Use strong, unique passwords and password managers: Create strong passwords and reserve each for a single account without reusing it. Considering using a password manager tool to securely store your credentials.
• Enable multi-factor authentication: Multi-factor authentication (MFA) or two-factor authentication (2FA) add an extra layer of security by requiring you to verify your identity twice. This is often a code texted to your phone or generated by a verification app.
• Slow down and verify unexpected requests: Always slow down to verify the validity of any communications you receive about your account or your banking. Contact your bank directly using the phone number on its website or official documentation.
• Be cautious with links, texts, and phone calls: Never click on links or download attachments sent to you by unknown sources. Be suspicious of unsolicited calls or messages that request you take urgent action related to your accounts.
• Monitor account activity and alerts regularly: You can prevent problems and limit potential damage by checking your accounts frequently and setting up alerts for changes. Even strong security tools will work best when they are backed up by your awareness and careful habits as the overseer of your accounts.

What to Do If You Suspect Account Takeover Fraud

It’s important to act immediately if you suspect account takeover fraud and are concerned that your bank account has been compromised. Take the following actions.

• Contact Seacoast Bank immediately to report the issue
• Change your passwords and secure your login credentials
• Review all recent transactions, including payment app activity
• Report any scam attempts or impersonation messages
• Continue monitoring your accounts for follow-up incursion attempts

If you’ve been the victim of a scam, you can report incidents to the FBI’s Internet Crime Complaint Center (IC3) and IdentityTheft.gov.

Staying One Step Ahead of Account Takeover Scams

Account takeover fraud is on the rise. Protect your accounts by staying aware of fraudsters’ tactics and knowing how to react quickly when you’re targeted. Learn how to recognize common methods of stealing your information, watch for warning signs in your banking and know how to secure your accounts.

Explore Seacoast Bank’s fraud prevention resources and report any suspicious activity promptly to stay one step ahead.

1. To send or receive money with Zelle®, both parties must have an eligible checking or savings account. Transactions between enrolled users typically occur in minutes.

 Zelle® and the Zelle® related marks are wholly owned by Early Warning Services, LLC and are used herein under license.