What occurs in an account takeover scenario?

In an account takeover scenario, a consumer loses their account access due to fraud because the fraudster gains unauthorized access to the consumer's account, usually by stealing login credentials or personal information. This situation typically involves the fraudulent actor changing account details, such as contact information or passwords, locking the rightful owner out.

This scenario is critical in the realm of payments and cybersecurity because it involves a breach of trust where a malicious actor directly compromises an individual's account, making it imperative for businesses and financial institutions to implement robust security measures. Recognizing the impact of account takeovers helps in developing better prevention strategies and understanding the potential repercussions for consumers, such as financial loss and identity theft.

Other choices do not accurately reflect what happens specifically in an account takeover. For example, creating a new account from scratch describes a different process entirely, while losing track of receivables pertains more to business operations than individual account security. Unauthorized charges incurred by merchants can result from various types of fraud but are not exclusively related to the account takeover scenario.