The insurance sector has made huge strides in digital innovation—unfortunately, so have cybercriminals. Account takeover (ATO) remains one of the most alarming methods fraudsters use to exploit policyholder data and company resources. Once criminals gain unauthorized access to an account, they can:
Submit fraudulent claims: For example, a fraudster could access a life insurance policyholder's account and file a claim for a non-existent death, rerouting the payout to their own account.
Alter sensitive customer information: Fraudsters might change contact details, such as email or phone numbers, to intercept communication from the insurer, leaving the real policyholder unaware.
Steal personal and financial data: Criminals can extract Social Security numbers, bank account details, or medical records to sell on the dark web or use for identity theft. Damage brand reputation and erode trust: A single high-profile breach could tarnish an insurer's reputation, causing customers to lose confidence in the company's ability to protect their sensitive information.

The Numbers Don’t Lie According to recent industry analyses, over 60% of insurance companies worldwide have experienced an increase in ATO attempts over the last year. The cost of these attacks goes beyond immediate financial losses—there’s also the long-term impact on customer trust and regulatory compliance.

What Can We Do?
1. Leverage Advanced Analytics & AI to spot unusual login or claim behavior in real-time.
2. Deploy Multi-Factor Authentication and context-based access controls to verify users.
3. Educate Policyholders on recognizing phishing attempts and protecting their credentials.
By proactively addressing ATO risks, insurers can protect their bottom line, stay ahead of evolving cyber threats, and safeguard the trust policyholders place in them.
How is your organization defending against account takeover schemes? Feel free to share your insights or questions below.

Anxiety, guilt, and stress are common psychological consequences, disrupting victims’ daily lives and compounding their recovery

Beyond individual harm, businesses suffer from damaged reputations, strained customer relationships, and loss of loyalty

Financial institutions play a critical role in aiding recovery. Quick action to secure accounts, empathetic communication, and enhanced security measures can ease the process. But rebuilding trust takes longer—often far longer than restoring the stolen funds.

Recovering from account takeover is a journey that goes beyond reimbursing financial losses. It requires addressing emotional impacts and mending fractured relationships. Financial recovery is achievable, but trust recovery demands time, effort, and unwavering commitment.

Let’s recognize and address the true cost of fraud—not just in dollars but in trust. How do you think organizations can better support victims?