Account sharing detection: policies, signals, and customer-friendly enforcement

Every online business seeks to increase the number of users it serves. However, there's a secret issue that drains revenues before it even reaches the bank such as account sharing.

While streaming service, SaaS platforms, and eCommerce sites grow, more customers are sharing login credentials with family members, friends, or even with strangers. While this may appear to be an issue that isn't too significant but it soon becomes an enormous security risk for your bottom line as well as your data security.

What is Account Sharing?

Account sharing occurs when one subscriber pays for a service but several people access the login information. In a more casual way it is the act of sharing a password with a friend.

For a business, however, this can be the abuse of multiple accounts. This isn't simply "sharing" when it happens across multiple households, cities or even nations. When your users don't use the per-seat or per-user pricing model, they are getting access to your premium services at no cost.

Why Account Sharing is Hard to Detect

It is a very difficult task because it can mimic normal user behavior. In contrast to a typical "bot attack" or "account takeover," there isn't any obvious sign of malicious activity.

- Regular Usage Patterns user sharing the account is real performing real-life activities through your website.

- Multiple Devices: The majority of modern users typically have two or three devices (phone laptop, tablet, or laptop).

- Location changes: People travel, utilize VPNs or switch between work and home Wi-Fi.

Since there isn't a "clear fraud signal," traditional security tools struggle to distinguish between a legitimate user and three others sharing the same password.

The True Impact on Your Business

Account sharing isn't an inconvenience of a minor nature It can cause an impact throughout your entire company.

- Revenue Leakage: Each shared account is a loss to the customer who is responsible the cost of their subscription.

- Subscription Utilization: If your price is dependent on "seats" or "active users," sharing breaks your method of monetization.

- Unbalanced Usage Data: Product teams rely on clear data. If five users use the same account the metrics you use of "average session time" or "feature usage" become meaningless.

- Infrastructure Costs: You're paying for the bandwidth of your server and the support of users who don't contribute to your profits.

Key Signals to Detect Account Sharing

To prevent accounts sharing, you have to look at more than a username or password. You must analyze the nature and context of your session.

Device Intelligence

The legitimate user usually has an identical number of devices. In the event that an account displays activity from 10 different mobile devices in a single week, that's an indication of fraud. Advanced device intelligence can help you determine if these devices belong to the same person, or distinct people.

Location Patterns (Impossible Travel)

If an account is logged into New York at 10:00 AM and then logs in from London at 10:05 am It's impossible physically to prove that it's the identical person. Multiple logins across different geographical regions is a major indicator of abuse by multiple users.

Behavioral Inconsistencies

Each user has an "digital thumbprint." A few people make use of your app in the evening and others do it in the lunch hour. If your account is in use throughout the day or has wildly divergent patterns of navigation at different times, it's likely to be used by several users.

Session Anomalies

Concurrent sessions are referred to as the "smoking gun." If two users stream different content or editing documents at the same time, and from multiple IP addresses then the account is shared.

The Limitations of Traditional Detection

Many businesses attempt to stop sharing information using simple guidelines, but they often do not work or are frustrating for real customers.

- IP-Based Tests: IP addresses change constantly. Using them to check for IP addresses can result in "false positives," where an authentic user who is traveling to work is blocked.

- Limiting the number of logins for your account to two devices isn't enough for modern families, and could cause high turnover.

- Basic Rules: Standard rules are easy for adversaries to get around. If they are aware that you only need to look to see "3 devices," they will just use two.

A Modern Approach to Account Sharing Detection

To stay ahead, companies are shifting to risk-based decision making. This means that instead of an "yes or no" block using a mix of signals to assess the possibility of sharing.

This is done by making use of device intelligence to find the exact hardware utilized, and then using behavioral analysis to determine how the hardware is interfacing with your system. Once you know who is "who" behind the device it is possible to stop the abuse and not bother your top customers.

How DeepID Helps You Secure Your Revenue

DeepID offers a specialized security layer specifically designed for teams working on growth and product that must balance security and a positive user experience.

Through aligning itself with your company's objectives, DeepID helps you transition from "guessing" to "knowing" the moment an account is used in a fraudulent way.

-Identification of unique users: DeepID goes beyond basic cookies to reveal the distinct user who is behind your account. We can help you understand the difference between a person who has three devices and three users with one account.

- Find Multi-User Patterns: Our engine detects the subtle patterns of account abuse that involves multiple users in real-time, which allows you to act before you lose revenue.

- Reduce Abuse without Stress: We concentrate on ensuring accuracy. This means that you can ask "sharers" to upgrade to an extended family plan or purchase their own plan, all while the actual users don't realize that you exist.

The result? A better revenue protection system, more accurate data for your team of product developers and a growth strategy based on actual, paying customers.

Best Practices for Preventing Account Sharing

Instead of a solid block instead, display a text that explains the advantages of having either a personal account or family plan.

- Do not act based on one signal. Make use of a combination of devices as well as location and behavior to create a "sharing score."

- It should be easy for users to "legitimize" their usage. The "Add a Member" button is usually more effective than an "Login Denied" screen.

- Be aware of your most active users in the top 1. The majority of your "active" accounts are actually the most shared accounts.

- Make use of tools that uniquely identify devices even if users clear their caches or choose to use incognito mode.

Conclusion

The detection and prevention of share of accounts is a delicate act. If you're too strict and you impact the user experience. If you're not careful and relaxed, you will lose money. The trick is to go beyond the simple IP check and incorporate the latest fraud prevention methods. With the help of deep signaling from devices and behavioral information it is possible to safeguard your system and keep the doors open for real expansion.