Diploma work: Carding and carders. Analysis of the phenomenon, methods and consequences.

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Introduction​

Carding is a modern form of cybercrime that involves using stolen bank card data to commit fraudulent transactions. In the context of the digitalization of the economy and the growing popularity of non-cash payments, carding is becoming an increasingly common phenomenon, causing significant damage to both individuals and companies.

The purpose of this paper is to study the phenomenon of carding, analyze the methods used by carders, and consider the consequences of their actions for society and the economy. Particular attention is paid to measures to counteract carding and ways to protect against it.

Chapter 1. Theoretical foundations of carding​

1.1 Definition of carding​

Carding is the illegal use of bank card data to perform financial transactions, such as purchasing goods, withdrawing cash or transferring money. This type of fraud includes:

• Cloning cards.
• Purchasing goods on underground sites.
• Transferring funds through money mules.

1.2. History of carding development​

Carding emerged with the development of plastic cards and electronic payments. The first cases of carding involved the use of skimmers on ATMs and POS terminals. Over time, criminals moved on to more sophisticated methods, such as hacking databases and using the darknet to sell stolen data.

1.3. Classification of carding​

Carding can be divided into several types:

• Physical carding: using cloned cards to withdraw cash.
• Online carding: making purchases on internet sites using stolen data.
• Industrial carding: large-scale operations using automated systems.

Chapter 2. Carding methods and tools​

2.1. Obtaining map data​

Attackers use various methods to obtain card data:

• Skimming: Installing devices on ATMs or terminals to intercept data.
• Phishing: Sending fake emails or SMS messages in order to obtain card details.
• Data leaks: Hacking of company or bank databases.
• Darknet: Buying these cards on underground forums.

2.2. Carder tools​

Carders use the following tools:

• Skimmers and shimmers: For reading data from a magnetic strip or card chip.
• Calling services: To check the functionality of cards.
• Cryptomixers: For "mixing" cryptocurrencies and making it difficult to track.

2.3. Carding stages​

1. Data Acquisition: Collecting card data through skimming, phishing or leaks.
2. Card Testing: Checking the functionality of cards on Cardable 2D sites.
3. Using cards: Making purchases, withdrawing cash or transferring funds.
4. Money Laundering: Converting funds into cryptocurrency or using money mules.

Chapter 3. Consequences of carding​

3.1. Economic consequences​

Carding causes significant damage to the economy:

• Financial losses of banks and companies.
• Increase in the number of disputed transactions (chargebacks).
• Rising costs for security systems.

3.2. Social consequences​

For ordinary people, carding can lead to:

• Loss of funds from bank cards.
• Deterioration of credit history.
• Stress and distrust of financial systems.

3.3. Legal consequences​

Carding is a criminal offense. The following are provided for participation in carding:

• Imprisonment.
• Large fines.
• Seizure of property.

Chapter 4. Anti-carding measures​

4.1. Technological measures​

• EMV chips: Protecting cards from cloning.
• Tokenization: Replacing card data with tokens for secure transactions.
• Artificial Intelligence: Analyzing User Behavior to Identify Fraudsters.

4.2. Legislative measures​

• Tightening penalties for carding.
• International cooperation to combat cybercrime.

4.3. Educational measures​

• Raising public awareness of data protection methods.
• Training company employees in safety rules.

Chapter 5. Examples of successful counteraction to carding​

5.1. Law enforcement activity​

Law enforcement agencies are actively combating carding through:

• Darknet monitoring.
• Closing underground forums.
• Investigations using data analysis.

5.2. Successful Technologies​

For example, the introduction of 3D Secure has significantly reduced the level of online fraud.

Conclusion​

Carding is a serious threat to modern society that requires a comprehensive approach to solving. Technological, legislative and educational measures can significantly reduce the level of carding. However, the key factor remains the awareness of citizens and companies about data protection methods.

Carding not only causes financial damage, but also destroys trust in financial systems. The fight against this phenomenon should be a priority for all market participants.

References​

1. Glenny M. "DarkMarket: Cyberthieves, Cybercops and You".
2. Poulsen K. "Kingpin: How One Hacker Took Over the Billion-Dollar Cybercrime Underground".
3. Mitnick K. "The Art of Invisibility: The World's Most Famous Hacker Teaches You How to Be Safe in the Age of Big Brother and Big Data".
4. Seitz J. "Black Hat Python: Python Programming for Hackers and Pentesters".
5. Kaspersky 's research on cybercrime.
6. Europol's anti-cyber fraud reports .

Applications​

1. Charts of the growth of carding cases over the past 5 years.
2. Examples of skimmers and their design.
3. Statistics of company losses from carding.

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