There are different types of financial fraud, such as identity theft, tax fraud, and bank fraud. Credit card fraud is classified under bank fraud. Credit card fraud is on the rise due to the rise of online banking around the world. People are now opting for online transactions more than cash transactions. Hackers and cybercriminals use different methods for credit card theft and fraud. One of the biggest scams is carding.
What is Credit Card Fraud?
Carding is a form of credit card fraud in which a stolen credit card is used to load prepaid cards. The credit card scammer is known as Carder. Fraudulent activity by a carder to steal credit card numbers and reuse them to purchase prepaid cards is called carding. The scammer may even sell these prepaid cards or use them to purchase other goods. These goods can also be resold for cash.
Read: Avoid online scams and know when to trust a website.
What is online carding?
When the scammer tries to use the stolen credit card number for online transactions, it is called carding online. In this web security threat, the thief attempts multiple parallel attempts to authorize stolen credit card credentials. For this activity, the criminal can use robots, a type of software that performs automated operations on the Internet.
Credit and debit card holders are always aware of card fraud. They are informed about ways to protect their cards and secure their transactions. However, despite all the measures taken, people have become victims of credit card fraud. According to the Nilson Report, credit card fraud has increased an average of 29% per year in the United States. It is estimated that credit card fraud loss could reach $40.63 billion in 2023.
Read: Avoid online shopping fraud and scams during the holiday season.
How does carding work?
Carders use different methods to acquire credit card numbers. Phishing attacks are common for this type of theft. Fraudsters can also buy stolen payment card numbers on the dark web. Hackers sometimes access the card payment system of an online store or website and acquire a list of credit or debit card numbers. Hackers obtain credit card information by using scanners to copy the encoding from the magnetic stripes.
Once the carders have the credit card number, they check to see if the cards are active and if the customer has not yet reported the theft. This is often done by making several small transactions on e-commerce sites. Online carding is also done by bots.
Carders use these active credit cards to purchase prepaid or gift cards, which are then used to purchase goods. Purchased goods, such as televisions, laptops, and other electronic devices, are resold for cash.
Read: credit card theft and PIN theft fraud.
How to protect yourself against credit card fraud Carding?
Carding or line carding can be avoided with the help of the following tips:
- Enable credit card notifications
- Try to identify a phishing attempt
- Install good anti-malware software.
1]Enable credit card notifications
Almost all banks and credit card issuers offer the service of notifications and alerts. These alerts are the best way to report fraudulent purchases made with your credit card. You can enable SMS and email whenever there is a local or foreign credit card transaction or your balance has exceeded a certain limit. With the help of these notifications, you may be able to catch a carder.
2]Try to identify a phishing attempt
It’s not always possible to find a phishing attack, but there are signs of an attack that you can spot. A message or email from an unknown source is often the scene of phishing attacks. Never click on links, download attachments, or reply to such messages or emails. It could be malware provided in those emails or messages, which are downloaded the moment you click on the links. Some scammers create deceptive forms or questionnaires that trick you into sharing personal information, like credit card details. Be on the lookout for such requests.
3]Install good anti-malware software
Malicious actors sometimes try to trick users into downloading 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 can prevent you from downloading such infected software.
Antivirus programs need to be updated because the definitions of new viruses and malware are updated in these programs. Always download antivirus program from known and trusted sources.
Read: What are Virtual Credit Cards and how and where do I get them?
Steps to take if you see carding activity
If you notice credit card activity on your credit card, take the following steps:
- Contact your bank or credit card issuer and report any suspicious activity on your card.
- Check your credit card and website security username and password. Reset if you feel it.
- Submit a request to block the credit card to prevent 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 penalty for Carding credit card fraud varies from country to country or state to state. In the United States, credit card fraud is also a federal crime.
I hope this post helps you!
now read: The 10 most common online, Internet and email scams and frauds.
