How to prevent carding attacks

Carding fraud is a sophisticated form of cybercrime that involves the unauthorised use and trafficking of stolen card information. It’s essentially cybercriminals armed with a stack of stolen card details, testing which ones still work. They use bots to test thousands of card numbers on ecommerce sites, hoping to find working cards. It's a high-tech version of picking locks, but with credit cards.

But how does carding work? The process typically unfolds in several stages:

• Data acquisition: Cybercriminals obtain card information through various means, such as data breaches, skimming devices, or purchasing stolen data on the dark web.

• Validation: The stolen credit card details are then ‘tested’ or validated, often through small purchases on ecommerce platforms. This helps fraudsters identify which card information is still active and usable.

• Exploitation: Once valid card details are confirmed, criminals use this information to make fraudulent purchases. A common tactic is to buy prepaid gift cards, which are easily resold and difficult to trace.

• Monetisation: The final step involves converting the fraudulently obtained goods or gift cards into cash, often through online marketplaces or cryptocurrency exchanges.

This carding scam is not limited to credit cards alone; it extends to debit cards and gift cards as well. The scope of carding activities also encompasses the exploitation of personal data and various money laundering techniques that conceal the origin of the fraudulently obtained funds.