Stop Account Takeover Before It Happens: A Guide for Financial Platforms

Preventing account takeover starts with understanding what we’re up against, and it’s not as complicated as it sounds, just incredibly high stakes.

Account takeover is exactly what it sounds like: someone gets into an account that isn’t theirs. It’s a simple concept with a devastating reality that financial platforms know all too well.

Financial platforms are basically wearing a target on their backs, and the reason is obvious. Unlike other industries where hackers might steal data or cause chaos just to prove a point, finance offers something way more attractive: direct access to money.

One successful breach is all it takes for attackers to drain accounts, redirect funds, or trigger identity fraud on a massive scale.

Between 2021 and April 2024, more than US$758 million in losses were reported from over 95,800 online fraud victims.

In 2024 alone, financial scams made up 84.5% of all commercial crimes, amounting to US$382 million in losses.

The stakes here are massive, extending well beyond immediate financial loss. Your customers put their money in your hands expecting it to be safe, and when that trust cracks, they’re gone.

Meanwhile, regulators are watching every move, ready to hand out fines and drag your reputation through the mud if you slip up.

Why Account Takeover Hits So Hard

The damage from a single compromised login doesn’t stop at the door. It ripples outward, destabilizing everything in its path:

Unauthorized transfers and fraud: Attackers move fast — setting up transfers, fraudulent purchases, even recurring payments before the real user catches on. By the time the alarms ring, the money’s gone.
Identity theft and regulatory fines: A financial account is a treasure chest of personal data. When it’s exposed, the fraud spreads wider, and regulators start knocking. Those fines? They can stretch into the millions.
Customer trust erosion: One headline-grabbing breach and suddenly, customers hesitate. Some leave. Others stick around but disengage, scaling back usage. Either way, the relationship changes, and not in your favour.

That’s why preventing account takeover isn’t just a “security task.” It’s the bedrock of customer loyalty.

How Attackers Actually Get In

To build smarter defenses, you need to see the playbook. And spoiler alert, it’s not rocket science. Attackers rely on tried-and-true methods that keep working because people keep falling for them.

The Classic Moves:

Phishing: Fake login pages that look real enough to fool even sharp users. The lure is simple, the payoff is huge.
Credential stuffing: Brute simplicity at its finest. Recycled passwords from one breach, tested across dozens of platforms. Password reuse is rampant, and attackers know it.

The Silent Stalkers:

Malware and keyloggers: Once installed on a device, they scoop up everything typed: passwords, banking details, even one-time codes. Victims usually have no clue until the damage is irreparable.

The Sophisticated Play:

SIM swaps: Con a mobile carrier to transfer a phone number, and suddenly, the attacker owns every text-based code meant for the user.
MFA bypasses: Outdated authentication systems crumble instantly against evolved techniques.

Attackers don’t chase high-tech vulnerabilities. They chase the weak links: passwords, reused credentials, and second-factor systems that haven’t evolved.

Actually Preventing Account Takeover (The Smart Way)

Preventing account takeover requires a layered approach that balances strong security with a smooth experience.

Add too much friction and your users will find risky workarounds. Add too little, and attackers find the gaps. The smart move is building defenses that protect accounts without driving people away.

Passwordless Authentication

First and foremost, passwords are the weakest link, which is why removing them is one of the most effective ways of preventing account takeover.

With Descope, financial platforms can implement passwordless login flows that use biometrics, passkeys, or magic links instead of traditional credentials.

This eliminates password fatigue, cuts the risk of phishing, and ensures only verified users can gain access.

Your platform gains stronger protection, and your users enjoy easier logins.

Multi-Factor Authentication (MFA)

Adaptive MFA raises the bar without slowing everyone down. When a login comes from a new device or an unusual location, the system asks for extra verification.

Descope’s adaptive MFA and risk-based verification capabilities integrate easily with your existing platform, allowing context-aware checks that adjust to user behaviour in real time.

Continuous Monitoring

Preventing account takeover doesn’t end once someone logs in. Continuous monitoring helps catch suspicious activities such as:

Large transfers
Strange transaction patterns
Attempts to change security settings

Real-time alerts allow quick action that stops attacks in their tracks.

Customer Education

Even the best technology can’t close every gap. Educating customers about phishing, safe habits, and why certain checks exist is essential in preventing account takeover.

When people understand the risks, they’re less likely to fall for scams and more likely to support your security efforts.

How Descope Strengthens Defence

Descope makes advanced identity protection accessible. Its customer identity and access management (CIAM) platform enables financial platforms to design, test, and deploy secure login experiences with minimal code.

From detecting anomalies to enforcing fine-grained access rules, Descope complements 8×8’s communication ecosystem, closing authentication gaps before attackers can exploit them.

Descope no-code flow builder for preventing account takeover through adaptive authentication and risk-based verification steps. — Build no-code authentication flows designed to detect suspicious activity and secure user logins with Descope.

Why This Actually Matters (Beyond the Obvious)

Yes, prevention stops fraud. But the ripple effects reach further:

Fraud costs drop: This means less money lost, fewer hours wasted on cleanup, and fewer drained support teams.
Compliance strengthens: Auditors see serious, layered defenses, which matter as regulators tighten scrutiny.
Trust grows: Most importantly, customers feel safe and supported, and that confidence drives engagement. When security and authentication is seamless, it becomes a competitive advantage instead of a hidden cost.

Protect Your Account with 8×8

For financial platforms, preventing account takeover isn’t optional. It’s the foundation of modern digital finance. Attackers are evolving, but so are the defenses, if you choose to deploy them.

The truth is simple: your customers don’t want to choose between safety and convenience. And with technologies like passwordless authentication and adaptive MFA, they don’t have to.

Your customers deserve seamless security. Let’s make sure they get it. Talk to us today about how Descope and 8×8 can transform your platform’s protection.

FAQ – Preventing Account Takeover

What is account takeover in financial platforms?
Account takeover happens when fraudsters gain unauthorized access to a user’s account, often using stolen credentials, and carry out fraudulent activities such as transfers or identity theft.
How do attackers typically take over accounts?
Common methods include phishing, credential stuffing with leaked passwords, SIM swap fraud, and malware like keyloggers that capture login details.
What’s the most effective way to prevent account takeover?
A layered approach works best: passwordless authentication, adaptive multi-factor authentication, continuous monitoring, and customer education.
Why is preventing account takeover critical for financial institutions?
Account takeover prevention protects against fraud losses, ensures regulatory compliance, reduces support costs, and most importantly, builds customer trust and loyalty.