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  • Account takeover attacks can lead to leakage of sensitive information, financial damage, and identity theft. Below we provide several ways for organizations and individuals to protect themselves from such attacks.

  • This is another publication in the “How to Protect Yourself” series. In this article, we explain how account takeover attacks work and how to protect yourself from them.

Account takeover attacks cause financial and reputational damage to businesses and individuals. In this article you will learn how to avoid such a scenario.

Account takeover attacks (ATOs), where scammers gain control of user accounts, are a growing concern for businesses and individuals. Such attacks can lead to serious financial, emotional and reputational damage. For example, attackers could gain unauthorized access to sensitive information, commit fraudulent transactions, or use hijacked accounts as a launching pad for other illegal activities.

Learn how to take steps to protect against ATO attacks and why it's important.

Why is it important to protect yourself from ATO attacks?

Preventing financial and reputational damage for companies

Account takeovers, which may be part of larger data breaches, can lead to consequences such as regulatory fines, legal issues and loss of customer trust. Companies can face huge financial losses from fraudulent transactions, fines, remediation costs, lawsuits, and theft of intellectual property or confidential information.

ATO attacks can also cause serious damage to business reputation and result in decreased customer trust, loss of customer service and negative publicity, potentially impacting a company's revenue and market position. Even if an account takeover attack is resolved, restoring a damaged reputation may not be easy.

Preventing damage to individuals and organizations

Account takeover attacks are an invasion of privacy by giving attackers unauthorized access to victims' personal information, messages, and sensitive data. This can cause emotional and mental harm and leave you feeling helpless and vulnerable.

In organizations, such alarming incidents create an atmosphere of fear, which leads to decreased morale and productivity among employees.

To avoid becoming a victim of an ATO attack, pay due attention to protecting your account or platform:

  • Use strong passwords.

  • Enable two-factor authentication (2FA).

  • Keep your devices and networks secure.

  • Track actions in your accounts.

  • Report any suspicious activity immediately.

Tips for creating strong passwords

Password complexity and length

Use strong, unique passwords for each account. They must contain upper and lower case letters, numbers and special characters. Passwords longer than 12 characters make it more difficult for attackers to hack an account.

Avoid using easily guessable information such as names, birthdays, and real words.

Updating Passwords

Change your passwords every 3-6 months. Ideally, they should not be repeated.

Try not to use the same password for several accounts, so that if one of them is hacked, attackers will not gain access to the others.

Password managers and vaults

Use trusted managers and vaults to generate and store strong, unique passwords for each account. These tools improve the strength of your passwords and help you organize your credentials.

Avoid storing passwords in web browsers, as they do not always provide the same level of security as specialized managers. For the same reason, do not store passwords locally on devices. If you lose your phone or laptop, your password could be stolen.

This is also why writing down passwords is not a good idea. If you do decide to record them, keep the media in a safe place, such as a locked drawer or safe.

Multi-factor authentication (MFA)

Multi-factor authentication (MFA) requires users to verify their identity using multiple types of verification, not just a password.

Here are some common MFA options:

  • SMS, voice calls and email. A unique code is sent through these channels.

  • Authentication applications. Apps like Google Authenticator, Microsoft Authenticator, or Authy can generate time-limited one-time passwords without requiring an internet connection.

  • Push notifications. Confirmation requests are sent to the user's mobile device.

  • Tokens. A unique code or response is generated using a physical device such as a USB token or smart card.

  • Biometric authentication. The verification may use the user's unique biological characteristics, such as fingerprints, face, voice, or iris. Authentication using biometric characteristics is convenient and at the same time secure because it is difficult to replicate.

We recommend that all Binance users enable two-factor authentication (2FA) on their account. Binance also supports various MFA options, including biometric, app, email, and SMS authentication.

How to protect devices and networks

Keep your software and firmware up to date

Regularly update the operating system, applications and firmware on your devices. Updates often include security patches that fix known vulnerabilities, reducing the risk of them being exploited by attackers.

Use encryption and secure protocols

Enable encryption for your devices and networks. Use secure protocols such as HTTPS for web browsing and SSL/TLS for email.

Enable firewalls

Enable firewalls on your devices and routers to control incoming and outgoing network traffic. Firewalls act as a barrier between your devices and the internet, blocking unauthorized access and potential threats.

Implement device management and access control policies

Set up strict device management policies, including password requirements, account lockouts, and timeout limits. Limit administrator rights to mitigate the potential impact of a breach.

Protect your Wi-Fi network

Change the default credentials and enable strong encryption (WPA2 or WPA3) on your Wi-Fi network. Use a strong, unique password and keep the network SSID secret.

Use public Wi-Fi networks with caution

Public Wi-Fi networks are inherently less secure. Do not transmit or receive sensitive information while connected to such a network.

Whether you need to log into your cryptocurrency or bank account, buy something online, or access sensitive work information, connect to a reliable and secure network.

Create guest networks

If your router supports this feature, create a separate guest network for your visitors. This isolates guest devices from your main network, reducing the risk of unauthorized access to sensitive data.

How to track suspicious activity in your accounts

Monitoring suspicious account activity can help detect and prevent unauthorized access or fraudulent activity. Below we provide tips on this topic.

Turn on alerts and notifications

Turn on account activity alerts. These are usually sent by a crypto service provider or financial institution. These alerts can come via email, SMS or push notifications and inform you of any suspicious or unusual activity.

Check your account activity regularly

Regularly review your account activity, including transactions, login history, and account settings. This can help identify signs of unauthorized access or other suspicious activity.

Keep your contact information up to date

Make sure service providers have your current contact information, such as your email address and phone number. Thanks to this, you will receive important notifications, and if suspicious activity is detected in your account, you can be contacted promptly.

Be on guard against phishing attacks

Be vigilant when criminals impersonate real organizations to trick you into disclosing sensitive information. Be wary of unexpected messages or calls asking for personal information and do not click on suspicious links. We recommend that all Binance users enable the anti-phishing code for email notifications.

Check your credit bureau statements

Regularly check your credit bureau reports for unauthorized or suspicious activity on your accounts. Once a year, you are entitled to a free report from all major bureaus. Analyzing these reports can help identify fraudulent activity on your accounts.

Report any suspicious activity immediately

If you notice unusual or suspicious activity, please report it immediately to the appropriate service provider or financial institution. Their specialists will help you protect your account or account, reverse unauthorized transactions and minimize damage.

If you suspect that your Binance account has been hacked, please contact our support team as soon as possible and change your password and multi-factor authentication method.

Additional Information

  • How to protect yourself: what are account takeover attacks?

  • How to protect yourself: types of account takeover attacks

  • How to protect yourself: detecting account takeover attacks

Risk Warning and Disclaimer. The following materials are provided “as is” without warranty of any kind for general reference and educational purposes only. This information should not be considered financial advice or a recommendation to purchase any specific product or service. The value of digital assets may be volatile, increasing the risk of loss of investment. You are solely responsible for your investment decisions. Binance is not responsible for your possible losses. This information does not constitute financial advice. Please refer to the Terms of Use and Risk Disclosure for details.