life as a fraudster: carding 101
TRANSCRIPT
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So You Wanna Be A Card Tester?
Life As A Fraudster: Carding 101
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$16.3 billion in fraud losses globally1
1 https://www.internetretailer.com/2015/08/28/card-not-present-payment-fraud-poised-grow
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Average CNP fraudster spends $900 in 5 days1
1 http://www.creditcards.com/credit-card-news/day-life-common-credit-card-crook-1282.php 2 http://www.cardhub.com/edu/credit-debit-card-fraud-statistics/ (2014 statistics)
Nearly $100 per-fraud-incident average reported by cardholders2
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CNP fraud attempts up 30% in 20151
1 https://cardnotpresent.com/news/cnp-news-nov15/CNP_Fraud_Attempts_up_30__in_2015,_EMV_to_Blame__-_Nov__19,_2015/
+30%
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1 https://cardnotpresent.com/news/cnp-news-nov15/CNP_Fraud_Attempts_up_30__in_2015,_EMV_to_Blame__-_Nov__19,_2015/
1 in 86 transactions = fraud1 1 in 114 transactions = fraud1
2015 2014
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I Heard The Commute Sucks.
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Countries with highest card fraud1
1 http://www.marketwatch.com/story/countries-with-the-most-and-least-internet-fraud-2015-06-032 http://cardnotpresent.com/news/cnp-news-feb13/E-Commerce_Passes_POS_as_Biggest_Target_of_Hackers_-_Feb__22,_2013/ (2012 statistics)
Romania accounted for 34% of cyberattacks, passing Russia, the previous leader2
BrazilSouth Africa
Venezuela
Indonesia
Russia
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2 Outta 3 Aint’ Bad, Kid. Besides, the Internet…
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E-commerce surpassed POS systems as target of cybercriminals in 20131
1 http://cardnotpresent.com/news/cnp-news-feb13/E-Commerce_Passes_POS_as_Biggest_Target_of_Hackers_-_Feb__22,_2013/ 2 https://www.internetretailer.com/2015/08/28/card-not-present-payment-fraud-poised-grow
25% of all fraud losses from CNP transactions2
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500 million computer devices are infected by botnet attackers each year1
1 http://defendmagazine.org/2016/05/07/journey-of-a-hacked-computer-from-torrents-to-botnets/
306 computer devices were compromised in the 17 seconds it took you to read this page1
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Sweet. When Do I Start Checking Stolen Credit Cards?
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Easy, Kid. You Gotta Set Up Your Business First. This Isn’t Amateur Hour.
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No longer lone wolf amateurs, but sophisticated, professional crime rings:
1 http://www.reuters.com/article/us-cybersecurity-indictment-idUSKBN0ED1GO20140602
Gameover Zeus botnet1
$100 million crime ring
Nearly dozen countries
Up to 1 millionmachines compromised
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First, A Little Networking. Just Like Any Good Start Up.
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1. Fraudster inserts skimmer into card reader mechanism…
1 http://krebsonsecurity.com/2016/06/atm-insert-skimmers-in-action/
Fraudster selling skimmer has “demo” on YouTube selling his product!
2. Fraudster demonstrates card working in card reader with skimmer inside…
3. Fraudster uses handy tool that extracts the skimmer…
3. Voila, he retrieves the skimmer and stolen card information.
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This Is Like LinkedIn For Fraudsters!
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Global fraudster ecosystem
• Dark web
• Chat rooms
• Hacker blogs
• Underground marketplaces
• Training videos
• Even INTERSHIPS!!! (Screen capture of fraudster online marketplace)
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Think I’m Ready. Can I Start Checking Cards Now?
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Not Yet. You Need To Figure Out Your Niche.
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Common Types of Fraudsters
1 http://www.creditcards.com/credit-card-news/know-your-fraudster-1282.php
Malware Writers software code that steals
credit card numbers stored on devices/in databases
Phishers/Spoofers emails and websites that
impersonate real companies so you surrender data
Skimmers inserts in card swipe slots
steal data at ATMs, gas pumps, vending machines
Counterfeit Cards fake credit cards imprinted
with stolen data (EMV is making this difficult)
Underground Marketplaces middle men receive stolen card info and re-sell online for cyber currency (Bitcoin)
Mules/Shoppers low-level “employees” buy
merchandise online/in-store using stolen accounts
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Now Can I Start Testing Cards?
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Common Signs of Card Testing
High Velocity multiple orders in short
time linked to same Device Fingerprint or Persona
No CVC Match AVS unable to match
CVC to account
Same IP/Phone/Email multiple orders re-using
same information over and over
Non-US IP Address foreign IP address or proxy server attempting to hide
foreign IP address
Small Ticket Items targets of card testers as
often no fraud screening for low-dollar transactions
Non-Profits low-cost donations are easy to test and fraud screening may not be sophisticated
DONATE
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Remember, You Don’t Just Want To Make Money.
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You Need To TurnThe Goods Into Cash FAST.
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How About High Tech Gear?
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Merchant Types Most Targeted for Fraud
Jewelry/Watches/Luxury Electronics/Technology Event Ticketing
Online Gaming Travel/Hospitality
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Most Popular CNP Fraud Types1
1 http://investor.aciworldwide.com/releasedetail.cfm?releaseid=943330
Virtual Gift Cards / eGifting Next Day/Overnight Ship
International Shipping Buy Online/Pickup In Store
e-
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One More Thing, Kid. You Gotta Have Credentials.
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And That’s Where Breaches Come In.
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accounts compromised (2015)1
1 http://blog.gemalto.com/security/2016/03/03/2015-data-breaches-by-the-numbers/
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781 data breaches in the USA in 20151
1 http://www.idtheftcenter.org/ITRC-Surveys-Studies/2015databreaches.html
Banking/Credit/Financial
Health/Medical
Business#1
#2
#3
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Let’s Go Testing!!!
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Typical card testing scenario
Fraudster makes multiple small-ticket
purchases or donations
Approval of transaction lets fraudster know stolen
account and credentials are working
Fraudsters sells “validated” stolen account and credentials to
underground marketplace
Fraudster directly makes big ticket purchases with stolen
account and credentials
OR
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“No, I Did NOT Buy A 72” Plasma TV Behind Your Back!”
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Dude, The Card Is Getting Turned Down!
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Am I Going To Get Busted?
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Don’t Worry, Kid. They GottaPlay By The Rules. We Don’t.
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Stopping CNP fraud is HARD
• Investigators run into jurisdictional issues
• Gets complicated chasing fraud operations across agency, state, and international borders
• Not enough resources, manpower, expertise to defeat every fraudulent activity
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Cool! Can I Try The “Nigerian Minister Advance-Fee” Scam?
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Ah, An Oldie But A Goodie.
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“Mom, How Many Times Have I Told You To NEVER Email Your Social
Security Number To Anyone?!?”
Beat Carding With Kount Complete™
www.kount.comRequest Demo