Main Takeaways
In this edition of our “Stay Safe” series, we’ll explore the different techniques hackers use to steal your data in an account takeover (ATO) attack.
ATO attacks occur when criminals gain unauthorized access to user accounts. Such security breaches can result in the loss of funds and sensitive data.
By knowing the different methods hackers use to pull off ATO attacks and following the essential security principles, users can better protect themselves against such attacks.
Today it’s more important than ever to protect your login credentials from hackers. We live in a digitized world where the bulk of individuals’ sensitive information is stored online. Specifically, account takeover (ATO) attacks have become a common method for hackers to steal digital assets. These attacks can lead to identity theft, financial losses, and reputational damage.
ATO attacks involve cybercriminals gaining unauthorized access to user accounts, usually through stolen login credentials, which could be obtained directly from victims themselves or through dealing with other criminals.
In this entry of our “Stay Safe” series, we’ll dive deeper into the different types of ATO attacks to explore how attackers steal login credentials and strategies for preventing such incidents.
How Attackers Steal Your Login Credentials
Hackers will employ various tools and strategies in their attempts to access user accounts. Recognizing the different types of ATO attacks is crucial as it can help users exercise vigilance and prepare relevant defensive measures against such threats.
ATO attacks can be difficult to classify as each attack is unique, and there is often overlap between categories. Nevertheless, some of the most recognizable forms of ATO attacks include the following.
Brute force attacks
Brute force attacks occur when hackers systematically attempt to guess various combinations of a user's login credentials, most often usernames and passwords. This usually involves the usage of automated software that generates numerous combinations at high speeds.
The basic idea of a brute force attack is the use of trial and error to gain unauthorized access to accounts. Hackers will try over and over again to force their way in, hence the name. Some of the most common types of brute force attacks include the following:
Simple brute force attacks: Attackers try to guess the user’s login credentials without the use of specialized software. Though simple, this method can be effective with weak passwords or poor password etiquette. In some cases, hackers can guess credentials with minimal reconnaissance work (e.g., finding out the city a user was born in to get past this common security question).
Dictionary attacks: Attackers try to gain unauthorized access to a user’s account by systematically testing words or phrases from a predefined list known as a “dictionary.” These dictionaries contain commonly used passwords, phrases, or patterns, making it easier for the attacker to guess the correct combination sooner than using a manual trial-and-error method.
Password spraying: Unlike typical brute force attacks that target a single account with numerous attempts, password spraying takes the opposite approach by targeting many accounts. For this reason, they are also sometimes referred to as “reverse brute force attacks.” To minimize the risk of triggering security mechanisms, the attacker will usually try only a few passwords per account.
Attackers typically gather a list of valid usernames or email addresses associated with user accounts. Then, they try a selection of frequently used or weak passwords (e.g., "password123" or "qwerty") across all the collected accounts. In some cases, a password could already be known (i.e., through a security breach), which the attacker uses to search for matching login credentials.
Credential Stuffing: Attackers collect stolen login credentials and test them on multiple other websites in an attempt to gain access to additional user accounts. For example, a hacker might test the username and password stolen from a user’s account in an online game on other platforms, such as social media, online banks, or digital exchanges. This type of brute force attack preys on poor security etiquette by users, such as reusing passwords or username combinations for various accounts across different platforms.
Attackers may also use a combination of more than one type of brute force attack. A common instance involves a hacker combining a simple brute force attack with a dictionary attack by starting with a list of potential words, then experimenting with character, letter, and number combinations to guess the correct password. The idea is that, by employing a combination of methods rather than just one, the attempts will be more successful.
Social engineering attacks
Social engineering attacks rely on exploiting known patterns of human psychology and social interaction as hackers utilize deceitful or manipulative tactics to coerce users into divulging login credentials or other sensitive information. Typically, the attacker will first investigate their victim before trying to gain their trust to ultimately trick them into revealing their data.
The most common types of social engineering techniques used by ATO attackers include:
Baiting: Attackers will use a false promise of a good or service to lure victims into a trap that steals their sensitive data. These could be carried out in the physical world (e.g., leaving an infected flash drive for victims to find) or online (e.g., tricking victims into clicking a malicious link with the false promise of free digital assets).
Scareware: Attackers will bombard victims with false alarms about fake security threats, tricking them into thinking their system is infected with malware. Users are then prompted to buy or download unnecessary or even dangerous software to fix the supposed problems but have, in fact, fallen for the attack once they comply. Fake antivirus protection is a common form of scareware, with the service that is supposed to combat the malware, quite ironically, being the malware itself.
Phishing: Attackers will send fraudulent messages, usually from fake profiles that impersonate trustworthy entities, to deceive users into revealing sensitive information, such as login credentials or other confidential data. In a phishing campaign, attackers will usually send the same message to multiple users. Thus, they are typically easier to detect through servers with a threat-sharing platform.
Spear phishing: Spear phishing is a targeted and more sophisticated form of phishing attack in which attackers specifically tailor their approach to a particular individual or organization. The attacker conducts extensive research on the target before crafting a highly convincing and personalized deceptive email or message to trick users into revealing sensitive information. Because of its personalized nature, spear phishing attacks are more effective and have a higher probability of success.
Malware attacks
In scenarios that fall into this category, attackers use malicious software (malware) to gain unauthorized access to users' accounts or systems. The aim of the attacker is to trick their victim into downloading and installing the malware, typically through social engineering attack techniques. Once installed, the malware will work silently in the background to infiltrate a system or network to cause damage, steal sensitive information, or take control of the system.
Some of the most common types of malware used by ATO attackers include the following:
Viruses: Infecting local files, viruses spread to other computers by attaching themselves to legitimate files. Viruses can perform a variety of operations, including corrupting, deleting, or modifying files, destroying operating systems, or delivering harmful code at specific dates.
Worms: Functionally similar to viruses, worms are self-replicating in nature and spread through computer networks instead of affecting local files. Worms often cause network congestion or system crashes.
Trojans: Disguised as harmless software, trojans run in the background stealing data, allowing remote access to the system, or waiting for an attacker to issue a command.
Ransomware: Ransomware is used to encrypt files on a victim’s computer until a ransom is paid to the attacker.
Adware: This type of malware displays advertisements to users as they browse the internet. These ads can be unwanted or malicious, as part of a social engineering attack. They can also be used to track user activity, potentially compromising their privacy.
Spyware: Silently monitoring and collecting data on the victim’s activities, such as keystrokes, website visits, or login credentials, spyware then sends it to the attacker. The aim is to collect as much sensitive information as possible before detection.
Remote access tools (RATs): RATs enable attackers to access and control the victim’s device remotely, typically through a backdoor in combination with a trojan.
API attacks
Application programming interfaces (APIs) are sets of protocols or tools used for creating software applications and allowing third-party systems to connect with users’ online applications. An API attack occurs when the attacker takes advantage of the security vulnerabilities of an API-enabled app to steal users' login credentials or other sensitive information.
API attacks can take many different forms, such as the following:
Injection attacks: Inserting malicious code into an API call to execute unauthorized actions or steal data.
Man-in-the-middle (MitM) attacks: Intercepting communications between parties and manipulating data transmitted between applications via an API.
Denial-of-service (DoS) attacks: Overwhelming an API with requests in order to cause it to crash or become unavailable.
Broken access controls: Exploiting vulnerabilities in the authentication or authorization mechanisms of an API to gain unauthorized access to sensitive data or functionality.
Session hijacking: Stealing a valid user's session ID and using it to gain access to an API with the same level of authorization.
Strategies for Preventing ATO Attacks
The impact of ATO attacks can be significant for both individuals and businesses. For individuals, the consequences can include financial loss, identity theft, and reputational damage. For businesses, an attack can result in data breaches, financial loss, regulatory fines, reputational damage, and loss of customer trust.
Hence, it is essential to have strategies to prevent ATO attacks in place. Both individuals and organizations should adopt robust security measures and practices.
Individual measures to prevent ATO attacks
Individuals would do well to adopt the following practices:
Enable multi-factor authentication (MFA) whenever it is available for an extra layer of security. On Binance, users can enable up to 4 types of MFA: email verification, phone number verification, Binance or Google Authenticator, and biometric authentication.
Use strong, unique passwords for each account by combining uppercase and lowercase letters, numbers, and special characters. Avoid using easily guessable information, such as names, birthdays, or common phrases. A large reason why ATO attacks – brute force attacks in particular – are so popular nowadays is that weak passwords are still so widespread. Also, update passwords regularly and avoid reusing the same passwords across multiple accounts.
Regularly review your online accounts and transactions for any suspicious activity and promptly report any unusual activities to the website or service provider.
Avoid clicking on suspicious links or opening any unexpected email attachments, as these could lead to phishing attacks. Always check the sender's identity and review the content of the email before taking any action.
Keep your devices updated with the latest security patches and use reliable security software, such as antivirus and anti-malware programs, to protect against threats.
Keep personal information private and do not overshare personal information on social media or other online platforms, as this can be used by attackers to guess your passwords or answers to your security questions, or even craft targeted phishing attacks against you.
Avoid logging into sensitive accounts when using public Wi-Fi networks, as attackers may intercept your data. Use a reputable VPN service to encrypt your internet connection when on public networks.
Set up strong recovery options for your accounts, such as alternative email addresses and phone numbers, and keep them up to date. This can help you to regain access to your accounts in case of unauthorized access.
Educate yourself and stay informed on the latest security threats and best practices to keep your accounts and personal information safe. Continuously update your knowledge on staying safe online so as to better protect yourself from potential attacks.
Organizational measures to prevent account takeover attacks
Organizations can apply the following strategies to prevent ATOs and protect their users’ accounts from unauthorized access:
Enforce robust password policies by requiring users to create strong, unique passwords, as well as setting minimum password length and complexity requirements. Implement policies that periodically require users to update their passwords and prevent password reuse across multiple accounts or services.
Implement multi-factor authentication (MFA) for all user accounts, especially for those that have access to confidential data and those with administrative privileges.
Regularly track user activities and monitor for abnormal behavior, such as unusual login times, locations, or frequent failed login attempts. Use advanced analytics and machine learning algorithms to detect potential account takeover attempts.
Implement measures to lock user accounts after a certain number of consecutive failed login attempts, with a specific cooldown period before the account can be unlocked.
Provide regular security awareness training for employees to recognize and report potential phishing attacks, social engineering attempts, and other threats that could lead to account takeover.
Ensure that all devices used by employees are secured with up-to-date antivirus and malware protection software, and enforce policies to keep the operating systems and applications updated with the latest security patches.
Perform regular security audits and vulnerability assessments to identify potential weaknesses in the organization's security posture, and address these issues promptly.
User safety is a top priority for Binance, and we invest significant resources in making sure that we hit every measure on this list and go beyond it.
What to Do if Your Credentials Are Compromised
If your login credentials have been stolen by a hacker, it's important to take immediate action to protect your accounts and sensitive information. Here are some steps you can take to mitigate the damage and prevent further harm:
Change your passwords: The first and most important step is to change your passwords on all affected accounts.
Contact your service providers: If your login credentials for a particular service have been stolen, contact the service provider and let them know what has happened. They may be able to take steps to help protect your account.
At Binance, user security is a top priority of ours and we do all that we can to help ensure your safety. If you suspect your Binance account to be compromised, reach out to Customer Support immediately.
Consider credit monitoring: If you believe that your personal information, such as your social security number or credit card information, may have been compromised, consider signing up for credit monitoring services to alert you to any suspicious activity on your accounts.
It's important to act quickly and take these steps as soon as you become aware that your login credentials might have been stolen.
Stay Safe
Protecting your login credentials is essential for safeguarding your digital assets. By understanding the different types of ATO attacks, how attackers steal login credentials, and strategies for preventing ATO attacks, users and companies can take proactive steps to protect themselves. Implementing strong password policies, multi-factor authentication, and ongoing monitoring and risk assessment can help prevent ATO attacks and keep digital assets safe.
Binance's security experts continuously track suspicious behavior on the platform and enhance our security protocols accordingly. When users submit an ATO report, we thoroughly examine the case and extend our support to the affected users.
Although Binance strives to ensure the safety of your account, it's vital for you to take charge of your own security. By adhering to the precautions outlined in this article, you can protect your confidential data and lower the chances of falling victim to an ATO attack. If you believe your Binance account might be compromised, reach out to Customer Support promptly.
Further Reading
Disclaimer and Risk Warning: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial advice, nor is it intended to recommend the purchase of any specific product or service. Digital asset prices can be volatile. The value of your investment may go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions, and Binance is not liable for any losses you may incur. Not financial advice. For more information, see our Terms of Use and Risk Warning.
