Online banking makes managing your finances easier than ever, but it has also created new opportunities for scammers. One of the fastest growing cybercrimes affecting consumers and businesses today is account takeover fraud.

Account takeover fraud happens when a criminal gains unauthorized access to your financial accounts, changes your login credentials, and uses your account to steal your money or sensitive information. According to the FBI’s Internet Crime Complaint Center (IC3), these scams often begin with phishing emails, fake text messages, spoofed phone calls, or fraudulent websites designed to look legitimate.

There are practical steps you can take to help protect yourself.

What is Account Takeover Fraud?

Account takeover fraud, often called ATO fraud – occurs when someone gains access to your online banking, email, payroll, or other financial accounts without your permission. Once inside, fraudsters may:

• Transfer money
• Change passwords or contact information
• Link external accounts
• Make unauthorized purchases
• Use your information via identity theft

Many scams rely on “social engineering,” where criminals manipulate people into giving up login credentials or verification codes. Fraudsters often impersonate trusted organizations like banks, delivery services, or government agencies.

Common Ways Scammers Try to Gain Access

Phishing Emails & Text Messages

Scammers will send messages that appear to come from a legitimate financial institution or company. These messages often create urgency by claiming:

• Your account has been locked.
• Suspicious activity was detected.
• A payment failed.
• Immediate verification is required.

The message may also include a fake website link designed to steal your username, password, or verification code.

Spoofed Phone Calls

Fraudsters can manipulate caller ID to make it appear they are calling from your financial institution. They may ask for:

• Online banking credentials
• Security codes
• One-time passcodes (OTPs)
• Debit card information

Remember: Legitimate financial institutions will never call asking for your password or MFA code.

Weak Passwords

Using the same password across multiple accounts increases risk. If one website experiences a data breach, criminals may try those credentials on your banking and financial accounts as well.

Malware & Public Wi-Fi Risks

Clicking suspicious links or using unsecured public Wi-Fi can expose your device and login information to cybercriminals.

Warning Signs of Account Takeover Fraud

Knowing the warning signs can help you act quickly before more damage occurs. Be cautious if you notice:

• Unexpected password reset emails.
• Login alerts from unknown devices or locations.
• Transactions you don’t recognize.
• Account balances that are less than what they should be.
• Changes to your contact information you didn’t make.
• MFA codes or verification requests you didn’t initiate.

If something feels off, trust your instincts and contact your financial institution directly using their verified phone number or website.

How to Protect Yourself

Use Strong, Unique Passwords

Create passwords that are unique and difficult to guess. Avoid using the same password for multiple accounts. Password managers can help securely store and generate strong passwords.

Enable Multi-Factor Authentication (MFA)

MFA adds another layer of protection by requiring a second form of verification beyond your password. This may include:

• Authentication apps
• Security tokens
• Biometrics
• Text or email verification codes

Security experts recommend using non-phishable MFA methods when available, such as authentication apps or passkeys.

Never Share Verification Codes

If someone calls, texts, or emails you and asks for your one-time passcode or MFA code, it is a scam. Fraudsters often use stolen passwords and then trick victims into sharing the final verification step.

Verify Before You Click

Avoid clicking links in unsolicited emails or texts. Instead:

• Type the website address directly into your browser.
• Use your financial institution’s official app.
• Call the institution directly, using a trusted phone number.

Monitor Your Accounts Regularly

Review your accounts frequently for unauthorized activity. Early detection can significantly reduce fraud losses and help your financial institution respond faster.

Keep Your Devices Updated

Install software updates, anti-virus protection, and security patches regularly to help protect against malware and other cyber threats.

Be Careful with Public Wi-Fi

Avoid logging into financial accounts while on unsecured public networks unless you are using a secure VPN connection.

What to Do if You Think Your Account Has Been Compromised

If you suspect account takeover fraud:

1. Contact your financial institution immediately.
2. Change your passwords right away.
3. Enable or reset your MFA settings.
4. Review recent transactions.
5. Monitor your credit and account activity.
6. Report the incident to the FBI’s IC3 at IC3.gov

Acting quickly can help reduce loss and prevent additional fraudulent activity.

Stay Alert & Protected

Cybercriminals continue developing more sophisticated scams using spoofing, phishing, automation, and even AI-generated impersonation tactics. Financial institutions and consumers alike must remain vigilant. The Federal Reserve has identified account takeover fraud as a growing and persistent threat due to expanding digital activity and increased access to stolen personal data online.

At First Financial, protecting our members’ financial security remains our top priority. Staying informed, practicing safe online habits, and recognizing red flags can go a long way toward helping keep your accounts secure. Contact us right away if you have any concerns or questions about fraud on any of your First Financial accounts.