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Carding Fraud Process Flow Diagram

Carding Fraud and How to Prevent it

In today’s digital world a new type of credit card fraud comes to light on a regular basis. With the use of cashless payments growing increasingly popular every day cybercriminals are becoming more creative when it comes to getting your personal credit card information. One of the newest types of credit card fraud called Carding Fraud is become more common.

Carding Fraud and Protection

In this blog we will look at how it works and what it is. Carding fraud attacks and account takeover fraud attacks are similar in that an account takeover uses stolen usernames and passwords focusing primarily on the login page and carding fraud focuses directly on the checkout page.

Card Fraud Explained

A new type of fraud is on the horizon called “carding”.  Simply put a fraudster takes your credit card numbers, while making sure they work, and then they turn around and use those credit card numbers to purchase pre-paid gift cards.

The fraudsters then continue the scam by either purchasing goods and services with said prepaid gift card or they will attempt to sell them in person on local shopping channels or online.

How Carding Fraud Works

Cybercriminals obtain credit and debit card data from the dark web. They will then run tiny transactions to run tests to confirmation whether the card data is valid or not.  The carding fraudsters will then use the validated debit and credit card data to purchase products, take funds from accounts associated with these cards or the money is then taken to purchase gift cards which can then be used to purchase high ticket items such as electronics. These items are then resold for high profits via ecommerce websites that do not require a lot of personal information.

Carding Fraud Process Flow Diagram

Preventing Carding Fraud Through Ecommerce Websites

There are several steps you can take to help combat the “Carding Fraud” happening on your eCommerce Website. Here are a few key items that you can leverage.

  1. Multifactor Authentication
  2. Recaptcha
  3. Address Verification System
  4. Card Certification Value
  5. Velocity Checks
  6. Authorization and/or Capture

Preventing Carding Fraud at a Consumer Level

Some ways consumers can help prevent themselves from falling victim to “Carding Fraud” are:

  1. Anti-Spyware Software
  2. Malware Blocker Software
  3. Recognize Phishing Scams
  4. Setup Notifications from Your Credit Card Company

Security Measures and What Merchants Can Do

While merchants and businesses try to take every precaution to protect themselves and their consumers from many types of fraud daily, there are no guarantees. That is why it is important for not only merchants and businesses to take precautions from everyday fraud, but it is now becoming even more important for consumers to also take responsibility with their own forms of protection from fraud.  The above list of options are just a few steps that merchants and consumers can take to help protect themselves and each other.

Take Steps Now to Protect Your Business

Instant Accept has many different strategies implemented to help combat “Carding” fraud and many other fraud types. Contact us to start protecting your business and your consumers now from not only Carding Fraud but everyday fraud as well. Find out how we protect your business.

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