Online Retailers

Online Retailers and ATO: Need a High Risk Merchant Account?

Posted on Posted in Business

Fraud goes on becoming more and more sophisticated. Online merchants and retailers are faced with an ever-evolving threat from account takeover (ATO) fraud. Are you well equipped to fight fraud? Where can you get a reliable fraud prevention solution for your online business? To know more about the topic, just read below.

Account Takeover and a High Risk Merchant Account

Account takeover (ATO) has to do with obtaining a legitimate user’s detailsfor the purpose of taking over his/her online account, possibly enabling monetary or credit card theft. ATO is becoming more and more widespread within the card-not-present (CNP) field.

ATO attackers’ goal is tomake aprofit using the value of the account.According to ACI Worldwide and Javelin Strategy, ATO made up USD $5 billion in fraud losses in 2017.

This type of attacksoften followsdata breaches. When cybercriminals hack into information systems and steal data, the latter tends to be incomplete and unorganized. So, hackers use bots to sift through the loot.

Specifically, ATO attacks can include updating a shipping address, changing a password, making fraudulent online purchases, money movements, etc.When a business gets affected by ATO, the consequences are painful. Such businesses end up with increased chargebacks and customer transaction disputes, loss of customer trust, customer churn, and brand damage.

Account Takeover (ATO) Is on the Rise

The 2018 Credential Spill Report from Shape Security, a Silicon Valley cyber-defense company, shows that up to 90% of the login traffic on eCommerce sites are automated attempts focused on verifying stolen username/password combinations. This is also known as “credential stuffing.”

Credential stuffing, a cybercrime technique, occurs when a hacker uses automated scripts to try each credential against a target website. The above-mentioned report states that eCommerce retailers collectively endure over 130 million credential stuffing attacks on a daily basis. This results in about 660.000 ATOs.

Today, ATO and new account creation fraud are the fastest-growing fraud types affecting online merchants. Online retailers are the primary target of ATO. Also, they’rea major target of the credential stuffing attacks validating stolen logins.

Are you an online retailer trying to protect your business? It’s critical for you to work only with a reputable credit card processing company that provides exceptional services to both high and low risk merchants. With a true payment expert, you can open an affordable, reliable and secure traditional or high risk merchant account, as well as enjoy the best protection against payment processing fraud. Besides, a respectable processor will offer you the best service to reduce chargebacks. This is how you can avoid damaging your business and increase revenue without major challenges.

If you want to fight online fraud, as a merchant, you should have a fraud strategy that can help you fully comprehend consumers’ unique transactional behaviors like the average spending pattern through a payment instrument, IP or email address, or a phone number. Beyond that, you should monitor average spend behavior per card BIN.

When it comes to consumers, it’s important for them to know the best practice to utilize stronger passwords when an account is created or a password updated.

Author Bio: Electronic payments expert Blair Thomas co-founded eMerchantBroker, serving both traditional and high-risk merchants by offering a high risk merchant account, and other merchant services. His passions include producing music, and traveling.