Account takeover (ATO) attacks are on the rise and have become one of the most serious threats for banks and financial institutions around the world.
As fraudsters leverage automation, generative AI, and large-scale credential theft, even well-protected organizations are experiencing unprecedented spikes in account compromise attempts.
Understanding the latest data can help you identify emerging attack patterns, prioritize high-impact security investments, and deploy fraud controls where they matter most.
In this article, we’ll highlight 25 account takeover statistics that every financial institution should be aware of to stay ahead of emerging risks.
What is account takeover?
Account takeover (ATO) is a type of identity fraud in which criminals gain control of a victim’s online account by stealing login credentials or deceiving the user into revealing them through scams or fake login pages.
Once the hackers are in, they can change personal details, move money, make unauthorized purchases, or even open new accounts, causing significant financial harm.
Common account takeover techniques include:
- Credential stuffing: Attackers try large volumes of stolen username–password pairs to see which combinations unlock an account.
- Phishing: Criminals trick users into revealing their login details, often through convincing emails or messages crafted to appear as if they were sent by a trusted source.
- Malware: Malicious software, such as keyloggers or data-stealing Trojans, captures login credentials after a user downloads an infected file.
- Mobile banking Trojans: These apps overlay fake login screens on a mobile device to capture credentials and can even alter transactions to redirect funds.
- Man-in-the-middle (MITM) attacks: Attackers intercept data between a user and a service, often on unsecured public networks, to steal login information.
25 account takeover statistics to be aware of
Recent industry reports highlight just how widespread and costly ATO has become for U.S. consumers and financial institutions.
Prevalence and growth of account takeover
Account takeover (ATO) has become one of the most widespread and fastest-growing forms of identity fraud in the U.S.
- Nearly 29% of U.S. adults have already been victims, making it one of the most common types of fraud.
- Even large corporations aren’t spared: 83% of Fortune 1000 companies have faced at least one ATO incident. In fact, in 2024, 99% of monitored organizations reported attempted account takeovers, and 62% experienced at least one successful attack.
- Overall attack volume remains on the rise, with 24% more ATO incidents detected in 2024 than in 2023.
- Account takeover fraud incidents spiked by 250% in 2024.
- Account takeover attacks in the fintech industry jumped by 85% compared to last year.
Financial impact of account takeover
Account takeover continues to accelerate in both scale and financial severity, with recent data showing staggering losses across consumers, businesses, and global markets.
- The FBI reports that, since January 2025, account takeover has already resulted in more than $262 million in losses across the U.S.
- Consumers are also bearing a significant financial burden. The FTC reported $12.5 billion in total consumer fraud losses in 2024, a record high, with account-takeover fraud representing a major share alongside phishing, imposter scams, and other common fraud schemes.
- Javelin Strategy & Research identified account takeover as the “greatest risk” to financial firms, citing a 13% year-over-year increase in ATO losses in 2024.
- Looking globally, annual ATO losses could reach $17 billion in 2025.
- For organizations that are breached, the financial consequences can be severe. A single corporate account takeover incident can cost nearly $5 million in losses.
Common attack vectors
Account takeover attacks rely on a rapidly evolving mix of automated credential abuse, social engineering, and authentication bypass techniques.
- Credential stuffing remains one of the most pervasive methods, with cybercriminals launching an estimated 26 billion automated login attempts each month using stolen username–password pairs.
- Password hygiene further fuels the problem. 62% percent of Americans admit to reusing passwords, meaning one exposed credential can cascade into multiple compromised accounts and downstream financial losses.
- About 52% of login attempts now involve leaked credentials.
- Phishing continues to be a top entry point. In early 2025 alone, security firms recorded more than 1 million phishing attacks in just two months, many powered by turnkey “phishing-as-a-service” kits.
- SIM-swapping and MFA-bypass techniques are becoming more common. In 2023, the FBI investigated 1,075 SIM-swap attacks, resulting in nearly $50 million in losses.
Consumer behavior and consequences
Consumer awareness of account takeover is high, yet everyday habits continue to create significant security gaps.
- 60% of consumers believe ATO prevention is a shared responsibility between users and businesses.
- About one-third of Americans report feeling overwhelmed by managing their passwords, and 11% believe there is little to no risk in reusing the same password across multiple accounts.
- 60% of businesses report direct revenue loss from customer churn caused by account takeover.
- A total of 75% of consumers would stop using a site after experiencing an account takeover.
- 87% of people would share their negative ATO experience with others, increasing reputational damage.
- Only 43% of ATO victims were notified by the company that their account had been compromised.
- On average, victims of account takeover spend 16 hours trying to fix the problem and regain control of their identity.
Financial institution response and prevention
Financial institutions are rapidly strengthening their defenses as account takeover becomes one of the most pressing threats.
- To counter rising attack volumes, 93% of banks and credit unions plan to increase investment in AI-driven fraud detection, leveraging machine learning to identify unusual login behavior and suspicious transactions.
- Multi-factor authentication (MFA) continues to expand as a frontline control. 87% of very large enterprises (10,000+ employees) now enforce MFA.
- Around 70% of financial institutions in the U.S. have integrated biometric technologies into their payment systems.
How to respond to the growing ATO threat
The data makes one thing clear: you must act proactively. Modern ATO attacks move fast, and without strong defenses in place, fraudsters can cause significant damage before anyone notices.
To better protect your organization and your customers, consider reinforcing your security strategy with the following measures:
- Adopt biometric authentication: Biometrics, such as fingerprint, facial, or voice recognition, provide a strong layer of identity verification and help ensure that only legitimate users can access their accounts.
- Use AI-powered fraud detection: Advanced machine-learning tools can analyze behavior in real time, flag unusual activity, and automatically block or challenge suspicious actions.
- Educate your users: Regularly teach customers and employees about phishing tactics, social engineering schemes, and strong password habits. Informed users are far less likely to fall for attacks that could result in account takeover.
However, many fraud tools only scratch the surface of the problem, reacting after suspicious activity has already escalated. What financial institutions truly need is the ability to see ATO threats forming in real time and stop them before they cause harm.
That’s exactly what VALID Systems delivers.
How VALID helps financial institutions prevent ATO fraud
VALID provides real-time account takeover protection designed specifically for financial institutions. It unifies device behavior, depositor activity, and transaction context to identify threats the moment a check is deposited across ATM, mobile, and branch channels.
Here’s how VALID’s real-time, behavior-based approach compares to traditional ATO detection tools.
Why banks rely on VALID for ATO protection
- Behavioral protection for every transaction: VALID monitors every deposit interaction in real time, looking for subtle changes in behavior that signal a compromised account. This includes:
- Login patterns and session behavior: Spotting activity that doesn’t match a customer’s normal habits
- Device fingerprint mismatches: Identifying new or suspicious devices attempting access
- Unusual access locations: Flagging IP or location changes that fall outside expected patterns
- Check data and depositor anomalies: Detecting inconsistencies between the account holder’s usual behavior and the checks being deposited
- Context-aware intelligence that goes beyond the check: Most legacy tools look only at the check image itself. VALID goes further by combining multiple layers of context to uncover signs of account compromise:
- User behavior: Identifies actions that don’t align with typical account activity
- Transaction metadata: Evaluates details such as timing, channel, and device to spot inconsistencies
- MICR and routing anomalies: Flags discrepancies in check data that may indicate tampering or misuse
- Integrated protection without customer friction: VALID works silently within your existing deposit workflows, mobile, ATM, and in-branch, providing strong protection without adding steps or delays for legitimate users.
- Channel-agnostic deployment: Delivers consistent fraud detection across every deposit channel
- Customizable risk thresholds: Allows institutions to tailor sensitivity levels to their specific risk appetite
- Automated alert triage: Surfaces only the most critical cases, reducing the workload for fraud teams
Protect your institution from account takeover before fraud occurs. Contact us today to see how VALID delivers real-time intelligence that keeps your customers and your reputation secure.
FAQ:
1. What’s the difference between account takeover and identity theft?
Account takeover (ATO) occurs when a fraudster gains unauthorized access to a victim's financial account. Identity theft is broader and involves using stolen personal information to open new accounts or commit fraud. ATO is often an early step that can escalate into full identity theft.
2. What are common signs that a member’s account has been compromised?
Key indicators include unexpected password reset requests, unauthorized transactions, changes to contact information, or login attempts from unfamiliar devices or locations.
Encouraging members to monitor their accounts and update passwords regularly can help detect issues sooner.
3. How effective is 2FA/MFA in preventing account takeover?
2FA/MFA is highly effective for financial accounts. By requiring a second layer of verification, it significantly reduces successful takeover attempts. While certain advanced attacks (like SIM swapping) can bypass it, MFA remains one of the strongest protections for member accounts.
4. Do device fingerprinting and behavioral biometrics affect the user experience?
No, they don’t. These security tools operate silently in the background. Device fingerprinting identifies unique device traits, while behavioral biometrics analyzes patterns such as typing or navigation. Both enhance fraud detection without adding friction to the digital banking experience.
5. What are the consequences of account takeover?
Account takeover can result in unauthorized transactions, temporary loss of access to an account, and stress for the affected member. For financial institutions, it can mean increased fraud losses, time-consuming recovery efforts, and reduced member trust.