Modern, passwordless authentication. Zero account takeover.

ATO fraud and the financial losses for FIs

FIs pay a high price from account takeover fraud (or ATO fraud). The financial losses from this cybersecurity attack can cost FIs an average of $12,000. To prevent unnecessary costs, and ensure a seamless customer journey, FIs must shift away from legacy security measures, such as one-time passwords (OTPs).

On average, cybercriminals steal 33 billion personal data records annually (IBM, 2023). Read our ATO fraud blog post.

Preventing the reputational damage of ATO

Aside from the devastating effects on customers, financial institutions that experience frequent ATO attacks risk financial losses themselves. They also risk breaking their customers’ trust and causing damage to their brand, quickly slipping down in top-of-wallet status as those affected switch to financial institutions that prioritize digital banking and data security.

68% of consumers want to keep passwords off their phones (PYMNTS.com, 2022). One alternative is passkeys, powered by FIDO. Download our passkeys fact sheet.

The dangers of ATO fraud for customers

Once cybercriminals gain access to a customer’s account through ATO fraud, they can immediately drain the funds from that account and access linked accounts with the victim’s hacked details. Plus, they often change the key account contact information, like contact email or mobile number, and use the compromised account to commit further fraud like phishing. One-time passwords are no longer strong enough protection against these ATO attacks.

OTP theft bots are 80% effective, proving that OTPs are not the deterrent they once were (Security Intelligence, 2023). Watch: Outpacing fraudsters by moving past SMS OTP.

Reduce ATO attacks with modern authentication

One-time passwords (OTPS) do not offer sufficient protection against ATO fraud as they’re easy for cybercriminals to intercept or hack. Modern authentication solutions like passwordless authentication and biometrics, secure customers' digital banking transactions, without adding unnecessary friction to the user experience.