From authentication to orchestration: Building smarter fraud defenses for banks

Account takeover attacks cost banks millions of dollars and erode customer trust. Two-factor authentication (2FA) strengthens account security, but it is most effective when orchestrated within a broader fraud prevention strategy. By combining device authorization and risk intelligence, banks can detect early-stage attacks, reduce risk and protect customer trust.

Many banks assume that they can secure accounts by deploying 2FA through push notifications, SMS codes or rolling tokens. But attackers often enter secure accounts by exploiting users.

Social engineering can trick account holders into sharing codes, while reconnaissance attacks use repetitive login attempts over days to blend fraudulent behavior into legitimate patterns. Even the most secure rolling tokens are vulnerable to real-time phishing, where attackers capture credentials and codes as they are entered.

Institutions that consider themselves unbreachable can face sudden waves of account compromises without a comprehensive fraud strategy. The most effective banks know that 2FA alone is not enough.

A North American business bank experienced a sudden spike in account takeovers driven by real-time phishing attacks. Fraudsters used SEO poisoning, a technique that manipulates search results to favor fraudulent sites.

They redirected victims to convincing phishing sites topping search results for the bank’s login page. Victims entered usernames, PINs and rolling token codes, which attackers captured within 60 seconds by using automated scripts.

Behavioral analytics revealed anomalies. In twenty accounts, paste actions in the token field on desktop logins stood out. They stood out because rolling tokens regenerate every minute and are rarely pasted—unlike in mobile browser sessions, where pasting is more common.

This observation underscores a critical point—two-factor authentication is not security; it’s a signal. Continuous monitoring through risk intelligence is essential because 2FA alone cannot stop account takeovers.

To make 2FA truly effective, banks must move from static checkpoints to a continuous defense model that extends beyond login.

Consider triggering a 2FA challenge for new devices to establish trust. This step helps stop basic account takeover attempts—such as credential stuffing—and ensures that only verified endpoints can access the account.

Authentication events, including failed, repeated or incomplete challenges, should feed directly into the fraud detection engine. This continuous evaluation helps uncover reconnaissance activity, where attackers trigger but don’t complete authentication. Monitoring this gray zone closes a critical detection gap.

Even trusted, authenticated devices must be monitored through risk intelligence. Many attacks succeed after 2FA when users are socially engineered to authorize fraudulent sessions. Evaluating authenticated devices for behavioral and transactional anomalies allows banks to detect attacks before funds leave the account.

Together, these three layers create a dynamic feedback loop that transforms 2FA from a one-time control into part of an adaptive, ongoing defense strategy.

Two-factor authentication provides valuable signals but represents only one element of a comprehensive fraud prevention framework. The most effective defenses do not simply add layers; they orchestrate them intelligently.

By integrating authentication signals with risk intelligence, banks turn 2FA from a single checkpoint into a dynamic tool that reinforces the overall defense strategy and protects customer trust.

The most effective banks build intelligent layered defense that authenticates new devices, continuously evaluates authentication signals and monitors authenticated sessions through risk intelligence. This adaptive orchestration is how banks stay ahead of evolving fraud tactics and preserve customer trust.

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