Today, our online reputations mean everything. Our digital personas are carefully curated, highly visible, and tightly managed as our dependence on the devices in our pockets grows stronger.
Therefore, when accounts are compromised due to credential stuffing and malicious actors take advantage, the consequences can be deeply devastating on a personal level.
Feelings of panic, embarrassment, and shame arise from incidents that occur in our digital realm, highlighting the very real impact of events in our online world.
This is particularly true in the case of social media account takeovers, which have been labeled an “Account Takeover Epidemic” by the Identity Theft Resource Center (ITRC).
According to a survey conducted by the ITRC, 66 percent of victims of social media account takeovers reported experiencing strong emotional reactions to losing control of their accounts. The survey revealed that 92 percent felt violated, 83 percent were worried and anxious, 78 percent felt angry, 77 percent felt vulnerable, and 7 percent even experienced suicidal thoughts.
These statistics hold significant importance in the realm of cybersecurity. While some may view social media identity theft as a mere inconvenience, these figures demonstrate the profound connection between one’s online reputation and their emotional well-being.
I personally know two individuals, Trevor and Stacey, who had their social media accounts hacked in July 2022. Neither of them had implemented two-factor authentication. Both Trevor and Stacey are successful professionals who actively engaged on social media, with Trevor having a particular interest in cryptocurrencies.
The attackers posted on their Instagram stories a blatant message about getting involved in a bitcoin mining scheme. They shared a screenshot of an iPhone lock screen, featuring a picture from their profiles (in Trevor’s case, a photo of him and his wife) and displaying a fabricated text message from Bank of America (BofA), followed by a screenshot supposedly showing Trevor’s bank account.
While it doesn’t require a cybersecurity expert to recognize this as a scam, it could still be an effective phishing tactic due to the deceptive nature of the source—an actual social media account within an ecosystem not commonly associated with abuse.
Out of curiosity about the attackers’ sophistication and driven by my penchant for engaging with the darker side, I responded to their story to assess the effectiveness of their messaging. I know, I know—I’m such a good friend, right?
This ordeal was a terrible experience for both individuals. Trevor managed to regain access to his account within 27 hours by utilizing Instagram’s facial recognition verification process, which compares your face against their extensive library of tagged photos. He also promptly enabled two-factor authentication.
On the other hand, Stacey chose to completely abandon social media. The ordeal proved too embarrassing and caused her overwhelming anxiety, leading her to relinquish the entire digital persona she had built.
This reaction is not uncommon. More than ever, consumers are inclined to stop using a website or platform if their account is compromised.
Panic, embarrassment, and shame. These are not the emotions we want end-users to associate with our products. While this example is specific to social media, the sentiment is universally shared.
Whether in social media, fintech, e-commerce, or any other organization with a vulnerable user base, credential stuffing represents an ongoing cat-and-mouse game with profound implications.
According to Javelin Strategy and Research’s 2021 Identity Fraud Study, account takeover (ATO) fraud resulted in over $6 billion in total losses in 2020. As companies develop new defenses, hackers continuously create tools to bypass these safeguards, perpetuating an unceasing cycle.
So, how can businesses combat this relentless threat? A recent Aite Group report interviewed risk executives from financial institutions, fintech lenders, and e-commerce companies to understand how they are safeguarding themselves against the escalating volume of ATO attacks.
Key Takeaways
Most consumers have a tendency to use the same usernames and passwords across multiple websites, creating a vulnerability that organized crime rings exploit.
The attack surface continues to expand, posing challenges for detecting and mitigating account takeover attacks.
Organizations require a solution that utilizes real-time data analytics to keep up with automated attacks, proactively blocking malicious activity before it impacts the business.
Companies with robust defense measures will witness a decrease in attack volumes as criminals shift their focus to easier targets.
Looking beyond the financial implications of account takeover attacks, it is crucial to recognize their profound human impact. Preventing fraud goes beyond monetary savings. It is equally vital for preventing the emotional trauma that erodes the foundations of an ideal digital future. Just like in the physical world, our desire is for safety, security, and trust.
Ian Lauth is Senior Manager, Global Demand Strategy at F5.
The opinions expressed are those of the author and may not reflect the editorial policy or an official position held by TRENDS.