Account takeover fraud statistics are alarming, and they’re only getting worse. Cybercriminals are constantly finding new ways to steal login credentials, leaving millions of people vulnerable. If you think it won’t happen to you, think again—hackers are smarter than ever.
According to Security.org, 29% of people have experienced an account takeover, up from 22% in 2021. That’s a huge jump, translating to around 77 million adults falling victim to ATO fraud. These numbers prove just how urgent this issue has become.
In this report, I’ve gathered key stats on account takeover fraud and, more importantly, how to prevent it. The goal is to help you understand the risks and take action before it’s too late. Protecting your accounts isn’t optional anymore—it’s a necessity.
Shocking Account Takeover Fraud Statistics and Trends: VPNRanks’ Key Findings
The account takeover fraud statistics for 2025 are based on past data trends, highlighting a steady rise in incidents. By analyzing previous years, we can see how ATO fraud has evolved and what to expect moving forward:
- 🚨 Account takeover fraud is expected to impact 36% of users by 2025.
- 💰 In 2025, financial losses from account takeover fraud are projected to hit $17 billion.
- 🔐 Personal accounts may remain the primary target for account takeover fraud in 2025, while business account takeovers will rise to 29%.
- ⚠️ Identity theft could be the most common consequence of account takeover fraud in 2025, while financial losses will surge to 50%.
Disclaimer: These figures are estimates provided by VPNRanks, based on historical data and current trends analyzed through predictive models. They represent potential future scenarios and should not be considered exact predictions. The actual outcomes may vary depending on various factors, including new interventions and changes in online behavior.
What is Account Takeover Fraud?
Account takeover (ATO) is a form of identity fraud where cybercriminals steal login credentials to gain control of financial, email, credit, or social media accounts. Once inside, they can manipulate personal data, make purchases, or execute further attacks.
A variation of ATO is synthetic identity fraud, where stolen details are merged with fake data to create a new identity. The impact can be severe, from one-time fraud to ongoing financial crimes, often leading to significant monetary losses for victims.
The Alarming Rise of Account Takeover Fraud
🚨Account takeover fraud is expected to impact 36% of users by 2025. This increase is driven by AI-powered phishing, credential stuffing, and weak password security, making ATO fraud more dangerous than ever.
Data Collection
The data on account takeover fraud is sourced from a Security.org survey, highlighting a significant rise in ATO incidents over recent years. The statistics show a 7% increase from 2021 to 2023, emphasizing the growing threat of digital identity theft.
| Year | Percentage of People Affected |
|---|---|
| 2021 | 22% |
| 2023 | 29% |
VPNRanks Predictions
Based on past trends, VPNRanks predicts that account takeover fraud could impact 36% of users by 2025. This marks a 7% increase from 2023, reflecting the growing threat of digital identity theft.
This prediction is based on the average annual increase (3.5%) observed from 2021 to 2023, projected forward to 2025.
Why Account Takeover Fraud Will Keep Rising
- Consistent Growth in ATO Fraud – From 2021 to 2023, account takeover fraud rose by 7%, indicating a steady upward trend. If this pattern continues, a similar increase is expected by 2025.
- Expanding Cybercrime Tactics – Hackers are using AI-driven phishing, credential stuffing, and social engineering more effectively, making ATO attacks easier and more frequent.
- Lack of Strong Security Measures – Many users and businesses still rely on weak passwords and outdated authentication methods, leaving them vulnerable to ATO fraud despite rising awareness.
Financial Losses from ATO Fraud: How Much is at Stake?
💰Financial losses from account takeover fraud are projected to hit $17 billion by 2025. The surge is fueled by AI-driven fraud, deepfake scams, and large-scale credential stuffing attacks, posing a major risk to both individuals and businesses.
Data Collection
The data on financial losses from account takeover fraud in America is sourced from AARP, highlighting a sharp rise in monetary damages.
| Year | Financial Losses (in Billion $) |
|---|---|
| 2022 | $11 Billion |
| 2023 | $13 Billion |
VPNRanks Predictions
Based on current trends, VPNRanks predicts that financial losses from account takeover fraud could reach $17 billion by 2025, reflecting a steady increase in cybercrime-related damages. This surge highlights the growing financial risk for both individuals and businesses.
This prediction is based on the $2 billion annual increase observed from 2022 to 2023, applying the same trend to estimate the 2025 figures.
The True Cost of ATO Fraud: Why Losses Will Continue to Rise
- Consistent Yearly Growth in Financial Losses – From $11 billion in 2022 to $13 billion in 2023, account takeover fraud losses increased by $2 billion annually. If this trend continues, reaching $17 billion by 2025 is a realistic projection.
- Evolving Cybercrime Tactics – Hackers are using AI-driven phishing, credential stuffing, and deepfake scams to steal financial data more efficiently, leading to higher fraudulent transactions and monetary theft.
- Lack of Adequate Security Measures – Many businesses and individuals still rely on weak authentication methods, making it easier for cybercriminals to drain bank accounts, steal credit card information, and conduct large-scale financial fraud.
Types of Accounts Targeted by ATO Fraud
🔐 Personal accounts may remain the primary target for account takeover fraud in 2025, while business account takeovers will rise to 29%. The surge is driven by password reuse, social engineering, and weak authentication protocols, increasing risks for both individuals and organizations.
Data Collection
The data on account takeover fraud is sourced from a Security.org survey, showcasing the breakdown of business and personal accounts targeted in ATO attacks. The statistics reveal a shift in attack patterns from 2021 to 2023, highlighting increased threats to business accounts.
| Year | Business Account | Personal Account | Business & Personal Use Account |
|---|---|---|---|
| 2021 | 13% | 80% | 7% |
| 2023 | 21% | 75% | 4% |
VPNRanks Predictions
Based on current trends, VPNRanks predicts that Personal Accounts are expected to remain the most targeted for account takeover fraud, affecting 70% of victims by 2025. Meanwhile, Business Account takeovers are expected to rise to 29%, showing a growing risk for organizations.
This prediction is calculated using the rate of change observed from 2021 to 2023, applying the same trend to estimate the 2025 figures.
Understanding the Shift: Why ATO Fraud is Changing
- Historical Trends Show a Clear Pattern – From 2021 to 2023, personal account takeovers dropped by 5%, while business account takeovers increased by 8%. If this pattern continues, business accounts will keep rising as a prime target.
- Businesses Hold More Valuable Data – Cybercriminals are shifting focus to business accounts due to their access to financial information, employee credentials, and sensitive customer data, making them highly lucrative targets.
- Weak Security in Personal Accounts – Despite growing awareness, many personal account users still reuse passwords and lack multi-factor authentication, making them an easy entry point for fraudsters looking to exploit login credentials.
Industries Most Vulnerable to Account Takeover Fraud
No industry is completely safe from account takeover fraud, but some sectors are more vulnerable than others. Any organization that stores sensitive customer data is at risk, making ATO fraud a major concern across multiple industries. Here are three key sectors where ATO fraud is a growing problem.
Financial Services
Banks and financial institutions are prime targets for ATO fraud simply because that’s where the money is. But fraudsters don’t just steal cash—they also exploit personally identifiable information (PII) and financial details for further crimes. Many use stolen accounts to launder money, making security measures like adverse media screening essential in this industry.
Healthcare
Healthcare records are highly valuable on the dark web, making medical organizations frequent targets of ATO fraud. Fraudsters use compromised accounts for prescription fraud, false insurance claims, and even large-scale cyberattacks like the UnitedHealth Group breach. Medicare and Medicaid scams continue to drain taxpayer money, highlighting the urgency for stronger cybersecurity in this sector.
According to VPNRanks’ report, 939.15 million people are expected to be affected by healthcare cyberattacks in 2026, underscoring the urgent need for stronger cybersecurity measures to protect patient data and prevent financial exploitation through Medicare and Medicaid scams.
E-Commerce
According to Intellicheck, the e-commerce sector is particularly vulnerable, with 61% of account takeover attacks targeting online retailers. Hackers exploit stolen accounts to make fraudulent purchases, taking advantage of saved payment details in retailer databases.
B2B wholesalers and e-commerce platforms are equally at risk, proving that ATO fraud is not just a consumer issue but a growing business threat.
The Process Behind Account Takeover Attacks
Account takeover fraud isn’t random—hackers use proven techniques to gain access to user accounts. Some methods are well-known but still highly effective, making them a constant threat to businesses and individuals alike.
Phishing
This is one of the most common and successful ATO tactics. Fraudsters send emails that appear to be from trusted sources, tricking victims into providing login credentials or personal information. Once obtained, this data is used to steal digital identities or access financial accounts.
Some phishing attempts are obvious scams, but others are highly sophisticated, mimicking emails from banks, government agencies, or even company executives. These scams are often part of larger social engineering attacks designed to manipulate victims into giving away sensitive details.
According to VPNRanks’ report, unique phishing sites may reach or surpass 2 million by 2025, highlighting the alarming rise of sophisticated phishing scams. Many of these attacks mimic emails from banks, government agencies, or executives, making them difficult to detect and often part of larger social engineering schemes designed to manipulate victims into giving away sensitive details.
Malware
Sometimes, phishing emails don’t just steal credentials—they infect devices with malware. This malicious software can steal data, spy on user activity, or lock access to files in exchange for ransom. Ransomware attacks, in particular, can cripple entire organizations if not handled quickly.
Credential Stuffing
Hackers take stolen credentials from one breach and use automated bots to attempt logins on multiple sites. Since many people reuse passwords, this method allows cybercriminals to access multiple accounts with just one set of leaked credentials.
Application Flaws
Cybercriminals exploit security weaknesses in software applications to gain unauthorized access. Vulnerabilities in database management, e-commerce platforms, and email systems can serve as an entry point for hackers, leading to major security breaches.
The Consequences of Account Takeover: What’s at Stake?
Account takeover (ATO) fraud doesn’t just affect individuals—it can seriously damage businesses as well. From financial losses to legal trouble, the consequences of ATO fraud can be severe and long-lasting.
- Financial Losses – Fraudsters can steal funds, drain bank accounts, or make unauthorized purchases, leading to major financial setbacks. Businesses may also face chargebacks and fraud-related expenses, impacting their bottom line.
- Reputation Damage – ATO fraud can erode customer trust, making people hesitant to share their data or continue doing business with the company. A tarnished reputation can lead to customer churn and long-term revenue decline.
- Legal Ramifications – Companies that suffer ATO breaches may face lawsuits from affected customers or fines for non-compliance with data protection regulations. Failure to secure user data can result in heavy penalties and legal action.
The Biggest Risks of Falling Victim to ATO Fraud
⚠️Identity theft could be the most common consequence of account takeover fraud in 2025, while financial losses will surge to 50%. This rise is fueled by stolen credentials, AI-driven phishing, and deepfake scams, making ATO fraud more damaging than ever.
Data Collection
The data on account takeover fraud consequences is sourced from a Security.org survey, highlighting the increasing risks victims face. The findings reveal a significant rise in identity theft, financial losses, and subsequent account takeovers over the years.
| Consequence | 2021 | 2023 |
|---|---|---|
| Identity Theft | 29% | 40% |
| Financial Losses | 20% | 35% |
| Subsequent Account Takeovers | 16% | 27% |
| No Consequences | 47% | 29% |
VPNRanks Predictions
Based on current trends, VPNRanks predicts that Identity Theft could be the most common consequence of account takeover fraud in 2025, affecting 51% of victims. Financial losses will also see a sharp rise, reaching 50%, making ATO fraud more damaging than ever.
This prediction is based on the rate of change observed from 2021 to 2023, applying the same trend to estimate the 2025 figures.
Why Identity Theft is the Fastest Growing ATO Consequence
- Rising Use of Stolen Identities for Fraud – Cybercriminals increasingly reuse stolen credentials for activities like loan fraud, synthetic identity creation, and impersonation scams, making identity theft a primary consequence of ATO fraud.
- Monetization of Hacked Accounts is Growing – Stolen financial information is being sold on the dark web, while fraudsters use compromised accounts for unauthorized transactions, money laundering, and cryptocurrency scams, leading to higher financial losses.
- Weak Security Measures Leave Users Exposed – Many individuals and businesses still lack multi-factor authentication (MFA) and use recycled passwords, making it easier for hackers to take over accounts and exploit them for identity fraud or financial gain.
Preventing ATO Fraud: Essential Security Measures
With the rise in digital identity theft and data breaches, businesses must take proactive steps to minimize their risk. Implementing strong authentication measures, AI-driven security, and employee training can significantly reduce the chances of ATO fraud.
Digital Authentication
Effective fraud prevention begins with thorough identity verification. While two-factor authentication (2FA) has been helpful, evolving threats demand additional security layers to protect accounts. Many businesses are now integrating biometric authentication and multi-factor authentication (MFA) to enhance security.
- Fingerprint matching & retinal scans – Already used by banks to verify customers securely.
- Live facial verification – Matches a user’s face with an on-file photograph to confirm identity.
- Behavioral biometrics – Uses online behavioral patterns to detect anomalies and fraud attempts.
- Multi-factor authentication (MFA) – Requires users to verify identity with multiple factors, strengthening security.
Taking a Risk-Based Approach
Businesses must stay updated on emerging fraud risks to develop proactive defense strategies. Implementing a zero-trust security model, adaptive cybersecurity protocols, and risk-based authentication can reduce exposure to ATO fraud. Each login attempt or transaction should be assessed based on its risk level before granting access.
Using AI-Powered Technology
AI and machine learning can analyze user behavior in real-time, detecting anomalies that indicate ATO attempts. Since fraudsters are using AI-generated phishing emails and deepfake scams, businesses need to fight AI with AI by implementing fraud detection systems that continuously monitor suspicious activity.
Training and Educating Customers, Clients, and Vendors
Awareness is a powerful tool in preventing account takeovers. Companies should educate users on recognizing phishing emails, malware, and impersonation scams. Training should cover creating strong passwords, avoiding credential reuse, and identifying red flags in suspicious emails.
Implementing Robust Security Solutions
Investing in advanced security solutions is crucial to preventing ATO attacks. These should include:
- Real-time fraud detection systems to flag suspicious activity.
- Continuous monitoring to track abnormal login behavior.
- Advanced encryption for securing sensitive data.
- Regular security audits to identify vulnerabilities.
Secure Handling of User Credentials and Personal Information
Strict security protocols must be in place to protect sensitive user data from ATO fraud. This includes:
- Encrypting data both in transit and at rest.
- Implementing least-privilege access controls to limit unauthorized access.
- Regularly updating systems to patch vulnerabilities.
- Conducting employee security training to prevent internal threats.
By layering these security measures, organizations can significantly reduce their risk of account takeover fraud and better protect customers and businesses alike.
Case Study: The 2020 Twitter Account Hijacking – A Lesson in Account Takeover Fraud
Background
In July 2020, Twitter faced one of the most widespread account takeover fraud incidents in history. Cybercriminals used social engineering techniques to manipulate Twitter employees into providing access to internal tools.
With this access, attackers hijacked multiple high-profile accounts, including Elon Musk, Bill Gates, Barack Obama, and Apple. The attackers then posted fraudulent cryptocurrency scam tweets, deceiving followers into sending Bitcoin payments to their wallets.
Impact
- Massive Financial Losses – The scam resulted in over $118,000 in Bitcoin theft from unsuspecting victims within hours.
- Severe Reputational Damage – Twitter faced global scrutiny over its security measures, with users and businesses questioning the platform’s ability to safeguard accounts.
- Regulatory and Legal Consequences – Law enforcement agencies, including the FBI, launched an investigation into the breach, leading to arrests and legal actions against the perpetrators.
Lessons Learned
- Stronger Internal Security is Crucial – The attack exposed the risks of insider threats and the importance of limiting employee access to sensitive account management tools.
- Multi-Factor Authentication (MFA) Must Be Standard – Organizations must enforce MFA for employees and users to reduce the likelihood of unauthorized access.
- Social Engineering is Still a Major Threat – Even tech giants like Twitter are vulnerable to manipulative cyber tactics, highlighting the need for regular employee security training.
- Rapid Incident Response is Essential – Delayed detection and response allowed the attackers to exploit the hijacked accounts, showing the need for proactive monitoring and real-time security alerts.
This case serves as a stark reminder of the dangers of account takeover fraud and the critical need for robust cybersecurity measures in businesses and personal accounts alike.
Hacker NewsVPNRanks Podcast: Breaking Down Account Takeover Fraud Statistics
In this podcast, VPNRanks explores the alarming rise in account takeover fraud statistics, revealing key trends and real-world impacts. Listen to expert insights on how ATO fraud is evolving, the financial losses involved, and the best strategies to prevent it.
Expert Insights: Understanding the Growing Threat of Account Takeover Fraud
In this section, I have included expert opinions on the rising threat of account takeover fraud and its impact on businesses and individuals. Their insights help explain account takeover fraud statistics and provide effective prevention strategies to combat this growing issue.
1. Andre Ripla PgCert
Andre Ripla highlights that Account Takeover (ATO) fraud has rapidly evolved, becoming one of the most persistent threats in cybersecurity.
With attackers now leveraging AI-driven social engineering, credential stuffing, and session hijacking, traditional defenses such as passwords and SMS-based authentication are no longer reliable.
He emphasizes that organizations must shift towards behavioral biometrics, continuous authentication, and AI-powered risk assessments to strengthen security. Without proactive measures, ATO fraud will continue to cause significant financial and reputational damage across industries.
Andre further highlights that by 2035, ATO fraud will likely become even more sophisticated, fueled by advancements in quantum computing and deepfake technology.
As cybercriminals develop real-time AI-generated phishing campaigns and exploit authentication vulnerabilities, businesses must adopt Zero Trust architectures, decentralized identity frameworks, and advanced fraud detection models.
He stresses the importance of cross-industry intelligence sharing, regulatory compliance, and user education as critical pillars in mitigating future ATO risks. Organizations that take a proactive stance today will be best positioned to safeguard digital identities in the coming decade.
2. Mihajlo Prerad
Mihajlo Prerad highlights that Account Takeover (ATO) attacks have become a major cybersecurity concern, allowing cybercriminals to exploit stolen credentials for unauthorized access. With automated hacking methods like credential stuffing and phishing on the rise, preventing ATO requires biometric authentication, fraud detection systems, and strict login attempt controls. He emphasizes that businesses must take a proactive stance to safeguard both user and corporate data.
He also stresses the importance of multi-factor authentication (MFA) and regular password updates to minimize vulnerabilities. Customer awareness plays a crucial role, as many ATO cases result from human error. To combat these threats, Mihajlo suggests bot mitigation strategies, real-time transaction monitoring, and stronger cybersecurity policies to prevent unauthorized access and data breaches.
3. Puneet Wadhwa
According to Puneet Wadhwa, account takeover fraud is a growing crisis in the banking sector, with $16.6 billion in losses in 2023 alone. Attackers use credential stuffing, phishing, social engineering, and deepfake technology to breach accounts and steal funds.
The widespread adoption of digital banking and frequent data breaches have made ATO fraud easier, requiring stronger security measures.
To combat ATO fraud, Wadhwa emphasizes a multi-layered security approach. Banks must adopt multi-factor authentication, behavioral biometrics, AI-powered fraud detection, and deepfake identification to counter evolving threats.
Additionally, collaborative intelligence sharing and predictive analytics help banks anticipate fraud trends and prevent attacks before they occur.
4. Daniël Wehnes
Daniël Wehnes highlights that account takeover fraud in B2B BNPL transactions is particularly dangerous due to the trust-based nature of these transactions and the sophisticated methods used by fraudsters.
With techniques like phishing, social engineering, and malware, attackers can gain legitimate access to business accounts, making it incredibly difficult to detect anomalies. Wehnes stresses that real-time monitoring, behavioral analytics, and multi-factor authentication are essential to minimizing risks and ensuring secure transactions.
Furthermore, Wehnes emphasizes that domain providers must play a more active role in preventing fraud by strengthening verification processes, monitoring suspicious activity, and acting swiftly on abuse reports.
He suggests that advanced fraud detection measures like device fingerprinting, transaction velocity monitoring, and integration with threat intelligence feeds can help detect and mitigate account takeovers before they result in financial losses. Collaboration among BNPL providers, merchants, and domain registrars is critical to strengthening security and preventing future threats.
VPNRanks’ Methodology for Predicting Account Takeover Fraud Statistics
VPNRanks uses a data-driven approach to forecast account takeover fraud statistics and trends, combining historical data, expert insights, and statistical models. These predictions help understand future risks and provide actionable insights for businesses and individuals.
- Historical Data Analysis – VPNRanks examines past account takeover fraud statistics from trusted sources. By analyzing year-over-year trends, we identify patterns in ATO attack growth and financial losses.
- Rate of Change Calculation – Using previous fraud growth rates, we calculate the expected percentage increase or decrease over time. This helps estimate how many people will be affected and the projected financial impact in upcoming years.
- Expert Opinions & Industry Insights – Predictions are refined through expert perspectives from cybersecurity leaders. Their insights on emerging threats, AI-driven fraud, and deepfake risks help validate and adjust our forecasts.
- AI & Machine Learning-Based Trends – VPNRanks considers technological advancements in cybercrime, such as AI-powered phishing and automated credential stuffing. Understanding these trends helps predict how ATO fraud tactics will evolve and impact future attack rates.
- Predictive Modeling & Future Projections – By combining historical trends, expert insights, and industry data, VPNRanks applies predictive modeling to estimate 2025 fraud statistics. This method ensures realistic and data-backed predictions about the rising threat of ATO fraud.
Explore More In-Depth Statistics and Reports by VPNRanks
- AI Chatbots and Privacy – Explore how AI-driven chatbots handle user data and the risks of unauthorized data collection.
- Cloud Data Breaches – Examine the increasing frequency of cloud security breaches and their impact on businesses.
- IT Trends – Discover the latest developments in IT security, emerging threats, and evolving cybersecurity strategies.
- Bug Bounty Statistics – Analyze how ethical hackers are identifying vulnerabilities and the growing role of bug bounty programs.
- Cyber Exploitation Statistics – Investigate the rise in cyber exploitation tactics, including phishing, ransomware, and credential theft.
FAQs
What is the difference between ID theft and account takeover?
Both ID theft and ATO involve stealing personal information for fraud, but they differ in scope. Account takeover (ATO) is limited to hijacking specific accounts, while ID theft can compromise your entire identity, affecting banking, credit, and legal records. With ID theft, you risk losing control over your entire life, not just a single account.
What is the trend in account takeover fraud?
Account takeover (ATO) fraud is on the rise, becoming an increasingly costly issue. In 2023 alone, ATO fraud led to nearly $13 billion in losses, up from $11 billion in 2022, highlighting a steady upward trend. As cybercriminals refine their tactics, financial damages from ATO fraud continue to escalate.
What is an example of new account fraud?
New account fraud occurs when fraudsters create multiple accounts to exploit a system for personal gain. For example, a user might create multiple accounts to cast extra votes, unfairly influencing poll results. In online gaming, players may use multi-accounting to gain extra resources, disrupting game balance and fairness.
What is the difference between true name and account takeover identity theft?
True name identity theft occurs when a fraudster uses stolen personal information to assume the victim’s identity for various fraudulent activities, such as opening new credit lines. In contrast, account takeover (ATO) fraud involves hijacking an existing account, allowing criminals to steal funds or make unauthorized transactions without creating new identities.
Conclusion
Account takeover fraud is evolving, posing an increasing threat to individuals and businesses alike. As cybercriminals refine their tactics with AI-driven phishing, credential stuffing, and social engineering, more users are at risk of falling victim. Without stronger security measures, the scale of these attacks will only grow.
According to VPNRanks’ predictions, account takeover fraud is expected to impact 36% of users by 2025, highlighting the urgency of proactive defense strategies. Additionally, financial losses from ATO fraud are projected to reach $17 billion in 2025, making it one of the most financially damaging cyber threats.
Understanding account takeover fraud statistics is crucial in combating this rising threat. Businesses and individuals must adopt multi-factor authentication, AI-powered fraud detection, and behavioral analytics to stay ahead of cybercriminals. Preventing ATO fraud is no longer optional—it’s a necessity for protecting digital identities and financial security.
