CARDING & CARD CRACKING
You don’t need to be Bonnie & Clyde to take money from banks in 2020 Carding is the use of credit and debit card information to fraudulently purchase goods and services. Cyber criminals use an automated technique known as card cracking in brute force attacks that generate thousands of requests per second to validate stolen card details. The stolen credit and debit card details used in these attacks are all available on carding forums, that have been populated using data from previous breaches, which leaves thousands, and sometimes millions of people vulnerable to carding attacks. It is important to note that the data breach does not need to have occurred recently or even at your credit union – with 60% of consumers reusing usernames and passwords across banks and other financial services, the data breach could have occurred anytime and anywhere.
DOCUMENTS FOR SALE ON CARDING FORUMS INCLUDE: PASSPORT
Counterfeit passports
Drivers' licenses
Birth certificates
Partial or full credit and debit card details
College/university identification cards
xxx-xx-xxxx
Social security/National insurance numbers
£
Diplomas or degree certificates
Health or other insurance cards and bills
Why is carding a threat to credit unions?
49%
200%
of carding victims will not use the same credit union again
increase in cases of card cracking fraud in 2017 alone
WHY IS THE THREAT INCREASING? The widespread global distribution of stolen information on carding forums has made it possible for criminals to quickly acquire breached personal and financial information. Cyber attackers are also beginning to use sophisticated methods to avoid detection, such as:
Placing random items in a cart to appear more like real users
Combining web scraping, account takeover and carding to make it impossible to identify the attack using traditional analysis
Impact of carding on credit unions
$11.6 million was stolen from consumers as a result of card cracking in 2014
$24.6 billion was lost globally due to credit card fraud in 2018
2600
different card cracking schemes resulted in a loss of over $6 millon by a collective of 22 American banks
Sources: https://www.prnewswire.com/news-releases/ecommerce-revenue-protection-pioneer-riskified-releases-results-from-its-firstannual-online-shopping--fraud-behavior-consumer-survey-300786392.html#:~:text=Unfortunately%20for%20merchants%2C %20the%20obvious,of%20the%20cost%20of%20fraud. https://www.chargebackgurus.com/blog/the-5-types-of-e-commerce-fraud https://www.finextra.com/newsarticle/27369/us-banks-bid-to-crack-down-on-card-cracking https://www.bloomberg.com/press-releases/2019-12-23/smartmetric-reports-that-over-24-billion-was-lost-in-2018-due-to-pa yment-card-fraud-worldwide https://info.rippleshot.com/blog/what-you-need-to-know-about-card-cracking