Carding in the IoT World: How a Smart Refrigerator Can Become an Ace to Fraud (On the Vulnerabilities of the Internet of Things to Financial Attacks)

[Professor]

Introduction: Toaster Attack
The Internet of Things (IoT) era promised us smart homes, where the refrigerator automatically orders food and the coffee maker starts making cappuccino by monitoring our wake-up call. But for cybercriminals, this hyperconnectivity has opened a new front — “household” carding, where the attack begins not with a phishing link in an email, but with a vulnerability in a child's toy or a smart home sensor. The smart refrigerator here is not a metaphor, but a real, potential accomplice in the crime.

Chapter 1: Why the IoT is a Perfect Target for Financial Fraud​

IoT devices are designed for convenience, not security. Their vulnerabilities become entry points into private networks, where financial data is ultimately stored.

1. Omniconnectivity and weak security. Smart devices often have minimal computing power, making it impossible to run serious security measures. Their default passwords (admin/1234) are rarely changed. They become easy prey for botnets like Mirai, which scan the internet for such "open doors."
2. Trusted network position. By infiltrating a vulnerable IP camera or thermostat, an attacker gains access to your home network — the same one where you access your online banking or make card purchases. From this device, they can launch attacks on other, more secure devices (such as your laptop or phone).
3. Silent and long-lasting persistence. Malicious code on a smart kettle's firmware can remain undetected for years, periodically transmitting data or serving as a springboard for attacks.

Chapter 2: Attack Scenarios: From Refrigerator to Bank Account​

Scenario 1: IoT as a Gateway for Data Interception (Teapot Sniffer)

• How it works: A hacked smart device (TV, media player) with Wi-Fi access is used to sniff traffic on the home network. If the connection to an online store or bank is insufficiently secure (for example, the site doesn't have HTTPS or it's outdated), the device can intercept entered card details, logins, and passwords.
• Role of a refrigerator: A device with a large memory capacity and constant power supply is ideal for covertly collecting and temporarily storing stolen data before sending it to the attacker's server.

Scenario 2: IoT as a Tool to Hide the True Source of an Attack (Refrigerator Proxy)

• How it works: Compromised devices around the world are transformed into a botnet. The carder uses this botnet as a network of anonymous proxies. When they check stolen cards or make fraudulent purchases, the requests are sent not from their IP address, but through the IP address of your smart refrigerator in Berlin or your air conditioner in Seoul. This confuses banks' geolocation systems and significantly complicates the investigation.
• Irony: Your technology, bought for comfort, is involved in fraud against other people, and you may receive an unpleasant call from your Internet service provider about suspicious activity.

Scenario 3: Direct financial fraud through embedded payments (Speaker-fraudster)

• How it works:Some devices have built-in voice or automated payment features. For example, a smart speaker with a linked card for ordering goods or paying for subscriptions.
  • Voice deepfake: Using pre-generated voice commands, an attacker can instruct the device to buy something.
  • Vulnerability exploitation: Hacking a device allows direct payment initiation through a linked account, bypassing voice confirmation.
• The role of the refrigerator: Even today, premium models with touchscreens allow you to make purchases at partner stores. A compromised refrigerator can autonomously order and resell expensive products (caviar, premium alcohol) to scammers' drop addresses.

Scenario 4: Phishing and Social Engineering via Compromised Devices (Spy Light Bulb)

• How it works: A hacked camera or microphone in a smart device is used to collect compromising information about the victim (daily routine, conversations, card numbers on the table). This data is then used for spear phishing or vishing. Imagine a call "from a bank," where the scammer knows not only your name but also what you discussed with your spouse over breakfast yesterday — thanks to the smart speaker in the kitchen.

Chapter 3: New Criminal Business Models​

1. Ransomware for the home: Malware blocks not the computer, but the smart home — it turns off the heating, lights, and alarms, threatens to spoil the food in the refrigerator (by lowering the temperature), and demands a ransom in cryptocurrency to regain control.
2. Boosting Drop Services: Fraudsters rent or hack not servers, but entire fleets of IoT devices around the world to use their IP addresses to verify cards and bypass bank geolocation blocks. This is the "next-generation drop infrastructure."
3. AI Training Data Theft: Data collected from millions of devices (habits, voices, schedules) becomes invaluable training material for AI scammers who will create hyper-realistic phishing scenarios and deepfakes.

Chapter 4: Why is it scarier than classic carding?​

• Scale: Tens of billions of vulnerable devices versus hundreds of millions of cards.
• Non-obviousness: The victim may be unaware that their toaster is involved in a fraudulent scheme. There are no notifications from the bank about a suspicious transaction from the device — it appears legitimate.
• Protection complexity: You can't install antivirus software on a refrigerator. Responsibility is blurred between the manufacturer, the owner, and the internet provider.
• Physical damage: An attack can result not only in financial losses but also in property damage, health risks (interference with medical IoT devices), and security risks.

Chapter 5: How to Protect Yourself? The "Digital Hygiene for Things" Paradigm​

1. Network isolation: Separate your home network into segments. Smart devices are placed on a separate guest network, preventing access to primary devices (laptops, phones) and preventing internet access when needed.
2. Strict settings: Mandatory change of default passwords, disabling unnecessary functions (remote access from outside), regular firmware updates.
3. Informed Buying: Choose devices from manufacturers with a good reputation for security, support, and timely patches.
4. Principle of least privilege: Do not link payment cards or crypto wallets to IoT devices. Do not grant them excessive privileges on the home network.
5. Traffic Monitoring: Using routers with features to monitor unusual network activity (for example, when a refrigerator suddenly starts actively exchanging data with a server in another country).

Conclusion: When the Ecosystem Betrays
Carding in the IoT world is a scenario where the very ecosystem of trust and comfort we've built around ourselves betrays us. A refrigerator, a lightbulb, or a babysitter, instead of being allies, become Trojan horses.

The battle is moving from computer screens to our physical reality. And while previously a carder needed to deceive a person or a banking algorithm, now they only need to find one vulnerable item in your home to gain the keys to your digital, and potentially financial, life. The future of cybersecurity is not just about protecting data, but also protecting the environment . In a world where everything is connected, everything is vulnerable. And the quiet, unnoticed operation of your refrigerator may be a sign not of its proper functioning, but of its betrayal.