Carding

What is Carding?

Carding is a term used to describe the act of stealing credit card information by unscrupulous individuals. Carding can be done in a number of ways, including physically swiping a stolen credit card without the owner’s knowledge, using malware on a victim’s computer to steal their login information, or obtaining an individual’s credit card number by entering their account details into an online form. 

 

Why do criminals steal credit cards? 

Carding is usually done as a way to commit other crimes, such as identity theft and fraud. The prevalence of carding has increased in recent years due to the growing demand for stolen credit card numbers and credentials, as well as the rise of online markets for stolen goods. 

Because stealing and selling personal data is illegal under most circumstances, those participating in carding are typically engaging in criminal activity. They may also be violating local laws regarding trespassing and theft. In addition, creditors and banks may view carding as fraudulent activity and take legal action against those involved.

 

What are the 7 ways that thieves can steal credit card information?

There are several ways that criminals can obtain credit card information without having the actual card in their possession. 

Skimming: Using a compromised ATM or credit card reader to steal credit card information - This can be done by installing a duplicate reader that records information from the user’s card as well as the PIN. 

Phishing: Putting up fake websites that trick the user into entering their credit card information - These sites often look like official payment pages from a well-known e-commerce site.

Racketeering: Using other criminal activities as a cover for stealing credit card information. For example, if a thief steals a wallet from a restaurant, they might take whatever credit cards they can find and then report the wallet stolen to avoid suspicion. 

Matching: Analyzing credit card receipts left behind by customers - This can be done by employees working in restaurants, bars and other places where customers provide their credit card numbers. 

Stealing credentials: Logging into online accounts to steal credit card information - This can be done by getting into an individual’s email account and changing the payment details for a subscription service, or by accessing someone’s bank account using their username and password. 

Malware - Computer hackers can use malicious software to steal login information and other data. 

Build a Credit Card Number Generator: A lot of the time, cybercriminals will be able to create a credit card using a fake number. This is why it’s important to check the digits on a card before completing a transaction. 

 

How Much Is a Stolen Credit Card Worth?

The average price for a stolen credit card number is about $12, though it can vary based on the card’s type and location. 

Credit card numbers can be sold in bulk for as little as $10 per one thousand numbers, while stolen debit card information goes for approximately $6. 

The price of stolen credentials depends on the level of access they provide. Credentials that come with credit card numbers, addresses, and social security numbers are worth more than partial card data. These can be sold for an average price of $50, while partial information goes for $20.

 

What are some safeguards and best practices to detect and block carding attempts?

Watch for unusual purchases: If you see a charge on your account that’s out of character for you, such as a large purchase at an out-of-state retailer, it could be a sign that someone has stolen your information. 

Stay informed about new threats: Credit card companies and financial institutions often issue warnings about new types of fraud. Keeping tabs on these alerts can help you stay ahead of the curve. 

Check your statements for unusual activity: You’re responsible for paying for charges that appear on your credit card statement, even if they weren’t made by you. Taking a few minutes to review your account each month can help you spot problems early. 

Use different login credentials for different accounts: Sticking to a single username and password combination is a bad idea. Instead, use a different login for each account that requires you to log in. 

Check your credit report regularly: You can obtain a free copy of your credit report from each of the three major credit reporting agencies once per year. Monitoring these reports can also help you catch any errors or suspicious activity that might raise a red flag with a creditor or lender.

 

What is the impact of Carding on businesses each year?

Credit card fraud, which includes carding, costs businesses billions of dollars per year, according to a survey of more than 800 companies by the National Retail Federation. The survey found that fraud was up 16% from 2017 and represented the highest level in more than a decade. 

As more and more commerce shifts online, the threat posed by carding is expected to grow. The NRF survey estimated that online fraud accounted for just 6% of total industry losses in 2017, but it could account for as much as 20% by 2022. 

Businesses can reduce their risk of becoming victims of carding by using fraud detection and prevention systems, as well as by following best practices for safeguarding customer data.

 

What are the steps to prevent a business from being scammed?

Train employees and management to recognize carding attempts - This can be as simple as making sure cashiers check the last four digits on a credit card against the cardholder’s name. 

Regularly check for fraudulent activity - Make sure you check your account for purchases you didn’t make, as well as unusual account activity. If something looks out of place, contact your financial institution as soon as possible. 

Monitor internal access to customer data - Make sure only authorized employees and contractors have access to customer information. 

Keep software and operating systems up to date - Outdated software is more susceptible to viruses and other malicious software. Use a tool like Spotrisk, to help with buyer verification and smart blocking where possible.

Use two-factor authentication whenever possible - This is not only an effective way to protect user accounts, but it can also reduce the risk of fraud on an account.

 

What are the best practices to prevent carding?

Never share your credit card information online: Never enter your credit card number or other sensitive information into an online form unless you know whom you’re dealing with. 

Check the digits on a credit card before completing a transaction: It’s easy to glance at a card to make sure it’s real, and it’s important to verify the numbers — even if the card looks legitimate. 

Be careful when giving out personal information: This includes not just your credit card number, but also your phone number, address, and other information that could be used in identity theft. 

Get a credit freeze: This is a good step to take if you’ve been the victim of a data breach. A freeze prevents new creditors from accessing your credit report, making it harder for criminals to open new accounts in your name.

 

Is carding a serious threat in 2023?

Carding is a serious threat to both consumers and businesses in 2023. Carding can happen in a variety of ways, including skimming, phishing, and hacking. It can be prevented with regular account monitoring, using different login credentials for each account, and by following best practices for safeguarding sensitive information.

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