Banks across Europe are tightening security controls after a marked rise in “account takeover” (ATO) attempts, a form of fraud in which criminals gain access to an existing customer account and use it to steal funds, change details, or set up future scams. The pressure is coming from multiple directions: more automated credential-stuffing attacks, more convincing social engineering, and growing use of AI to scale fraud tactics.
Regulators have also increased expectations around prevention and reimbursement, pushing banks to prove that their defenses are effective in practice—not just on paper. Recent EU-level fraud analysis continues to stress that strong customer authentication helps, but fraudsters are adapting and banks need to keep updating controls and monitoring. :contentReference[oaicite:0]{index=0}
What “account takeover” looks like in 2026
ATO attacks typically start with stolen credentials or identity data, then move quickly to actions that lock the real customer out or enable payments. Common patterns include:
- Credential stuffing using leaked username/password pairs at scale.
- Phishing and impersonation to trick victims into approving logins or transfers.
- SIM swap or device takeover to intercept one-time codes or reset access.
- Account “profile poisoning” (changing email, phone, address, or adding new payees) to prepare for theft.
Security teams say the most damaging cases often combine automation with social engineering—using bots to find weak accounts, then switching to targeted manipulation for high-value victims.
Controls banks are tightening first
Most banks are focusing on controls that reduce the chance of takeover and limit damage if an attacker gets in.
- Phishing-resistant login (passkeys/WebAuthn and stronger device-based authentication) to reduce password theft risk.
- Device binding that flags or blocks logins from untrusted devices and strengthens checks when a new device is enrolled.
- Risk-based “step-up” authentication for unusual behavior (new location, new device, unusual time, rapid retries).
- Bot and automation defense to stop scripted login attempts before they reach account access flows. /li>
- Harder account recovery with stricter identity verification so attackers cannot bypass strong login via weak support channels.
On the payments side, banks are also expanding controls around new beneficiaries and high-risk transfers, including more prominent warnings, temporary holds for suspicious transfers, and stronger confirmation steps.
Why regulation is pushing change
EU oversight has increasingly highlighted that strong customer authentication (SCA) reduces fraud, but the fraud mix is shifting and banks need to adapt to new attack methods.
At the same time, the policy direction under PSD3/PSR discussions and related fraud initiatives is toward tougher obligations on payment providers to prevent fraud and protect customers—raising the cost of weak controls and slow response processes.
What customers may notice
For many users, the tightening will show up as more “friction” in specific situations rather than every day. Typical changes include:
- More secure login options such as passkeys and app-based approvals instead of passwords.
- More checks when adding payees or changing contact details (email/phone).
- Extra confirmation for unusually large transfers or first-time destinations.
- Faster alerts for login attempts and profile changes, with simpler “lock account” actions.
“Banks are trying to move friction away from routine logins and toward the moments attackers rely on: new devices, new payees, and sudden changes to account identity data.”
Where the biggest gaps remain
Fraud analysts say the weak points are often not the login itself, but what happens after access is gained: changing recovery details, enrolling a new device, and pushing payments quickly before a customer notices. Meanwhile, AI-driven impersonation and more convincing scam scripts are increasing the pressure on customer education and bank-side monitoring.
Industry reporting also continues to emphasize that automated attacks and credential abuse remain persistent, meaning banks need both authentication improvements and strong automation defenses.
What happens next
Over the next year, banks are expected to expand phishing-resistant login rollouts, strengthen “high-risk action” controls (new payees, profile changes), and invest more in real-time monitoring that can stop suspicious activity mid-flow. The overall direction is clear: account security is shifting from passwords and static checks toward device trust, behavioral signals, and faster intervention when something looks wrong.