There are various types of financial frauds such as identity theft, tax fraud, and banking fraud. The frauds related to credit cards are categorized under banking fraud. Credit card frauds are on the rise due to increased online banking activities across the globe. People are now opting more for online transactions rather than cash transactions. Hackers and cybercriminals are using different methods in credit card thefts and frauds. One of the most prominent fraud is Carding.
What is Carding credit card fraud?
Carding is a form of credit card fraud in which a stolen credit card is used to charge prepaid cards. The credit card fraudster is known as a Carder. The fraudulent activity carried out by a carder to steal credit card numbers, and reusing them to buy prepaid cards is termed Carding. The fraudster may even sell these prepaid cards or use them to purchase any other goods. These goods may further be resold for cash.
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What is online carding?
When the fraudster tries to use the stolen credit card number for online transactions, it is termed online carding. In this web security threat, the stealer tries multiple, parallel attempts to authorize the credentials of a stolen credit card. For this activity, the criminal may use bots, a type of software that performs automated operations over the Internet.
Credit and debit cardholders are always made aware of card frauds. They are instructed about the ways to keep their cards safe and transactions secure. However, despite all measures taken, people have become victims of credit card fraud. According to Nilson Report, credit card fraud or carding has increased by 29% per year on an average in the United States. It is estimated that the loss due to carding credit card frauds may go up to $40.63 billion in 2023.
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How does Carding work?
The carders use different methods to acquire credit card numbers. Phishing attacks are common for this kind of theft. Fraudsters may also buy stolen payment card numbers from the dark web. Sometimes hackers gain access to an e-store’s or website’s card payment system and acquire a list of credit or debit cards numbers. Hackers procure credit card information by using scanners to copy the coding from the magnetic strips.
Once the carders have the credit card number, they check if the cards are active and the customer hasn’t yet reported the theft. This is often done by making several small transactions on e-commerce sites. Online carding is also done with the help of bots.
Carders use these active credit cards to buy prepaid or gift cards, which are further used to purchase goods. Purchased goods such as televisions, laptops, and other electronics are resold for cash.
Read: Credit Card Skimming and Pin Theft Frauds.
How to protect against Carding credit card fraud?
Carding or online carding can be avoided with the help of the following tips.:
- Activate the credit card notifications
- Try to identify a phishing attempt
- Install good anti-malware software.
1] Activate the credit card notifications
Almost all banks and credit card issuers offer the service of notifications and alerts. These alerts are the best way to flag fraudulent purchases from your credit card. You can activate text messages and emails every time there is a local or foreign transaction from your credit card or your balance has crossed a certain limit. With the help of these notifications, you may be able to catch a carder.
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2] Try to identify a phishing attempt
It is not always possible to find a phishing attack, but there are signs of the attack that you can identify. A message or an email from an unknown source is often the stage for phishing attacks. Never click on the links, download attachments, or respond to these messages or emails. It may be malware planed in these emails or messages, which gets downloaded the moment you click the links. Some scammers create misleading forms or questionnaires that make you share personal information, such as your credit card details. Keep an open eye on such requests.
3] Install good anti-malware software
Sometimes malware actors try to lure users to download infected software such as a free game, or free app. The software often contains spyware, viruses, and other unwanted programs. Installing a good firewall and antivirus program helps to avoid downloading such infected software.
It is necessary to update antivirus programs as the definitions of new viruses and malware are updated in these programs. Always download the antivirus program from well-known and trusted sources.
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Actions to take in case you notice any Carding activity
If you notice any carding activity on your credit card, take the following actions:
- Contact the bank or credit card issuer and notify them about any suspicious activity on your card.
- Cross-check the security login and password of your credit card and on the website. Reset it if you feel so.
- Send an application to block the credit card to avoid any further fraud.
- Run a full virus and malware scan of all systems involved including your website and laptops.
What happens if you get caught Carding?
The punishment for Carding credit card fraud varies from country to country or state to state. In the US, credit card fraud is also a federal offense.
Hope this post help!
Now read: Top 10 most common Online, Internet, and Email scams & frauds.
