Data breaches are now a fact of life, exposing ever-growing numbers of account data. This endless stream of records is fueling credential testing attacks for account takeover – undermining digital trust and authentication as we know it.
Proactive solutions are vital for merchants to gain control over their environments and detect threats before they emerge.
Walking on thin ice
2017 closed with 1,579 data breaches leaving customers’ sensitive data exposed. Over nine billion personal records are floating in the dark web. The consequences of this surge in stolen credentials are sophisticated and scaled automated credential testing attacks that take over accounts. Inexpensive and automated credential testing tools are making it easier and cheaper for fraudsters to check the validity of hundreds or thousands of username/password combinations in mere moments.
What this means for your business
The ripple effect of stolen credentials is dangerous to both consumers and enterprises due to the increasing impact of credential testing and resulting account takeover.
According to NuData’s analysts, account takeover (ATO) has increased tenfold in 2017, representing up to 50% of some retailers’ web traffic (and sometimes more for higher value accounts or during peak seasons).Credential testing is a key strategy used to pave the way for an ATO: it verifies stolen credentials en masse before launching the attack that will directly impact your customers’ experience, and your bottom line.
Why are other solutions not cutting it?
They miss pre-ATO threats
Most solutions look for fraudulent purchases, addressing nothing but the tip of the iceberg. They are missing the key threat vector – where accounts are tested by mass-scale attacks and becoming more sophisticated and impactful every day. These business threatening attacks happen well before the account takeover occurs days, weeks or even months before you see a fraudulent transaction.
“Credential testing and other types of mass scale attacks that lead to ATO are often missed by companies.”
– Shirley Inscoe, Aite Group
The ATO iceberg
What you see
ATO above the surface
This is the last step in the ATO-attack chain, and it’s also the only time most e- and mCommerce companies realize that they have a problem. At this stage, bad actors access the accounts and leave you with:
- Fraudulent purchases
- Increased chargebacks
- Reward abuse
- Customer churn
What you don’t see
ATO below the surface
The bad actor uses automated scripts to test the stolen credentials against merchant login interfaces to find the working ones.
Using ‘online validation aggregators’ the bad actor keeps testing the same credentials, even hourly, to make sure they are still valid – until someone buys them for account takeover fraud.
Some of these attacks are:
- Credential testing
- Credential harvesting
- Brute-force attacks
- Credential stuffing
ATO Protect by NuData
Stop ATO before it starts
Our exclusive solution for credential testing and ATO protection shields merchants against the stages of this automated fraud scheme with 99% accuracy.
We use cutting-edge technology such as behavioral analytics, device and connection detection, and machine learning. Our multi-layered solution accurately identifies if the user behind a login attempt is legitimate or a script part of a mass-scale attack.
ATO Protect allows you to
Expose account takeover
Block any fraudulent automated activity in real time before it can access your authenticated environment, without blocking or adding friction to your good users.
Monitor your traffic
Look at patterns, trends, types of browsers, custom device settings, and hundreds of additional data points from the population and down to the individual level. Credential-testing attacks create subtle changes that can be easily recognized.
Analyze the device intelligence
With enhanced device intelligence, you can look at the device, location, and connection to analyze your traffic. Monitor the information coming from the device and find out if it is spoofed, in real time.
Learn from your attackers
Leverage dynamic tools to understand the attacks, their techniques, and learn from them to protect you from future evolved attacks. Machine learning technology keeps you ahead of the fraud curve by stopping automation that attempts to pose as a human.
Our proven track record
A U.S. multi-brand online merchant with major automated account takeover problem:
Their solution was letting fraud through. ATO Protect immediately caught all the threats before the login.
Result: Over 10,000 credential testing attacks blocked per day.
Turn on ATO Protect to
- Identify automated account takeover and credential testing attacks with 99.9% accuracy
- Protect your environment at the pre-authentication stage
- End automated threats
- Dynamically adapt to ever-evolving, sophisticated attacks
“A solution that discerns automated threats from legitimate traffic is proving to be the most valuable asset eCommerce companies can implement today.”
– A Fortune 200 eCom provider
To learn more, visit www.nudatasecurity.com/ato-protect
Related to this post: “I Don’t Have an Account Takeover Problem” – A Common Misconception.