Account fraud is one of the most widespread forms of online crime. It occurs when a criminal uses stolen or fake information to make fraudulent purchases. A fraudulent account can also cause a business to lose money and damage its reputation. However, it is often difficult to prevent or detect fraud.
The most basic way to combat account fraud is to be cautious when entering personal information onto a website. You should never provide any of your personal information unless it is necessary to complete a purchase or a service request. In addition, you should keep all financial accounts up to date and monitor your credit card statements. If you notice any suspicious activity, you should report it to the financial institution or law enforcement agency.
Fraudulent online accounts are a common problem that can negatively affect businesses. They can result in phishing attacks, spam, promo abuse, and other forms of online fraud. This prevent account fraud can result in chargebacks, lost sales, and damage your brand.
Cybercriminals use social engineering and other tricks to get you to open a fake online account. For instance, they may pretend to be a representative of a popular company and ask you for personal details. Often, they will try to use stolen credentials to create the account. Once they have access to your details, they can start using it to buy products or resell them on the black market. Using multiple fake accounts can help them get around purchase limits and purchase quantities that would otherwise limit their success.
Cybercriminals also often have the ability to change the address and phone number of the account. Some crooks even ship goods directly to your home, making it easy for them to steal items. These accounts can be difficult to identify, but if you receive any unusual mails regarding new accounts, don’t trust them. Try to type the web address in your browser and verify the site.
Other methods of account fraud include credential stuffing and account takeovers. These types of attacks are characterized by a sudden spike in login traffic. Credential stuffing occurs when an attacker attempts to gain access to your account by creating thousands of fake login credentials. Typical accounts used in these attacks contain your name, email address, password, and Social Security number.
Fraudulent accounts can be very difficult to detect, and even if you suspect that a person has a fraudulent account, you need to check your bank statements and contact the financial institution immediately. Several companies offer detection tools to help you find and avoid account creation fraud.
When you are signing up for a shopping account, you should only give the minimum details required. Providing personal information such as your full name, date of birth, or mailing address is not only a sign of poor security, but can lead to fraud. Also, you should opt out of any pre-screened credit offers. Choosing the right vendor and ensuring the latest security can help protect your account from fraud.