Fin7 Case Study: How the Most Sophisticated Carding Group Operated and Was Taken Down

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The analysis is based on FBI, SecureWorks, and court documents. The material is intended to study cybercriminal tactics and defense methods.

1. Who are Fin7?​

Fin7 (also known as Carbanak Group) is a professional cybercriminal organization that specialized in:
  • Stealing card data through hacking POS systems.
  • Attacks on banks with the theft of millions of dollars.
  • Payment fraud in the US and EU.

Features of the group:
  • Worked under the guise of a legitimate IT company ("Bastion Secure").
  • Used a corporate structure with an HR department and KPIs for hackers.
  • Targeted restaurant, hotel and retail chains (Chipotle, Saks Fifth Avenue).

2. Fin7 Technical Methods​

Tools and Tactics​

MethodHow did it work?Example
Phishing 2.0Emails with malicious Word documents"Invoice for payment from supplier.docx"
Carbunak BackdoorMalware for accessing banking systems$1 Billion Theft via SWIFT Transfers
POS attacksImplementation into payment terminalsHack 100+ US Restaurants (2017)
Double extractionData Theft + Encryption for ExtortionAttack on Red Robin Gourmet Burgers

Geography of operations​

  • Headquarters: Ukraine (presumably).
  • Targets: USA, Great Britain, France, Russia.
  • Cashing out: Cryptocurrencies, shell companies in the Baltics.

3. Key mistakes that led to failure​

Mistake 1: LinkedIn Leak​

  • Group members posted resumes with real skills (e.g. "Carbanak expert").
  • FBI finds matches between Bastion Secure job postings and hacking tools.

Mistake 2: Using public servers​

  • Some of the C&C servers were located on AWS and Google Cloud.
  • Law enforcement officers obtained logs through requests to providers.

Mistake 3: Greed and Scaling​

  • Fin7 began attacking too many targets at once, which attracted attention.
  • One of the attacks on Saks Fifth Avenue led to an investigation by the Secret Service.

4. How were Fin7 caught?​

FBI Operation Dweller Tempest (2018–2020)​

  1. Carbanak Malware Analysis → Control IPs detected.
  2. Resume matching → member identification via LinkedIn.
  3. Arrests in Spain and Ukraine (2020–2021):
    • Three key members were detained (identities not disclosed).
    • $1.2 million in cryptocurrency was confiscated .
Result: The group broke up, but some of the members remained free.

5. Implications for the cybercriminal world​

  • Rising prices for POS exploits (due to shortage of specialists).
  • Banks have stepped up monitoring of SWIFT transactions .
  • Hackers have become more careful with social networks.
According to Europol, Fin7 activity has fallen by 80% since 2021.

6. Lessons for Cybersecurity​

✅ HR checks are important – even hackers look for jobs on LinkedIn.
✅ Cloud logs are gold for investigation – criminals leave traces on servers.
✅ POS attacks remain a threat – terminals are still vulnerable.

What to read for in-depth study?​

  1. SecureWorks "Fin7/Carbanak Analysis" Report (2022).
  2. Documentary film "Hacker: The Carbanak Story" (BBC).
  3. The book "Sandworm" (Andy Greenberg) is about Fin7's connections with other groups.

Want an analysis of other high-profile cases ( Carbanak, Cobalt Group)? I'm ready to tell you!

All data is from open court documents and FBI reports.
 
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