How can global unification of cybersecurity standards impact the reduction of carding?

[Student]

Hello! For educational purposes, I will provide a more detailed analysis of how global unification of cybersecurity standards can reduce the incidence of carding, and will also examine the mechanisms, limitations, and potential impacts of this process. Carding is a type of cyber fraud involving the use of stolen credit card data for unauthorized transactions, and combating it requires a comprehensive approach, which unification of standards can significantly enhance.

1. How unifying cybersecurity standards reduces carding​

1.1 Strengthening data protection​

Global unification of cybersecurity standards involves the creation of uniform data protection requirements that apply to all participants in the financial ecosystem: banks, payment systems, online stores, and others. This may include:

• Data encryption: Mandatory use of modern encryption algorithms (e.g., AES-256) to protect card data during transmission and storage. This reduces the risk of data interception (e.g., through man-in-the-middle attacks).
• Tokenization: Replacing actual card data with unique tokens that are useless to attackers. For example, technologies like Apple Pay and Google Pay already use tokenization, and global standards could make it mandatory for all payment systems.
• Two-factor authentication (2FA): Unification may include mandatory use of 2FA for all transactions, which reduces the risk of stolen card data being used without additional verification (e.g., via SMS code or biometrics).

Example: The PCI DSS (Payment Card Industry Data Security Standard) already requires card companies to adhere to strict security measures. If this or a similar standard becomes globally mandatory, vulnerabilities associated with inconsistencies in standards across regions will disappear.

1.2. Eliminating Weak Links in the Transaction Chain​

Carding often occurs due to weaknesses in the payment processing chain, such as outdated systems at small merchants, insufficient security at banks, or vulnerabilities in payment gateways. Global unification of standards:

• Eliminate inconsistencies: Currently, cybersecurity levels vary across countries and organizations. For example, some countries still use magnetic stripe cards, which are easily cloned. Unification could lead to a mandatory transition to chip-based payment cards (EMV) or digital wallets.
• Mandates system updates: Regular software and hardware updates will become mandatory, which will close loopholes such as vulnerabilities in older software versions (for example, vulnerabilities in POS terminals).
• Introduce minimum standards for all participants: Even small companies or startups, which are often targeted by carders due to weak security, will be forced to comply with global requirements.

Example: In 2013, hackers attacked Target through a vulnerability in a supplier's system, stealing 40 million credit card details. Global standards, including mandatory verification of all supply chain participants, could have prevented such an incident.

1.3. Improving international cooperation​

Carding is often transnational: data is stolen in one country, sold on the darknet in another, and used in a third. Global unification of standards:

• Simplify threat intelligence sharing: Creating international databases of cyberthreats and fraudulent schemes will allow for faster identification and blocking of carders. For example, platforms like ThreatMetrix already use global data sharing to identify suspicious transactions.
• Speed up law enforcement: Unified standards will simplify coordination between law enforcement agencies in different countries, making it possible to more quickly suppress the activities of carding networks.
• Reduce anonymity: Unification could include standards for tracking transactions (e.g., via blockchain), making it more difficult to use stolen data in anonymizing schemes.

Example: In 2019, a law enforcement operation in the US, Europe, and Asia led to the closure of the Wall Street Market darknet marketplace, where credit card data was sold. Unification could make such operations more efficient through standardized information exchange.

1.4. Implementation of new technologies​

Global standards can accelerate the adoption of innovative technologies that make carding less feasible:

• Biometric authentication: Using fingerprints, facial recognition, or voice recognition to confirm transactions. This renders stolen card data useless without physical access to the owner.
• Blockchain for verification: Distributed ledger technologies can ensure that transaction records are transparent and immutable, making them difficult to counterfeit.
• Machine learning: Algorithms that analyze user behavior can identify suspicious transactions in real time. Unifying standards could make such technologies mandatory for all payment systems.

Example: The introduction of 3D-Secure (Visa Secure or Mastercard Identity Check protocols) in Europe has significantly reduced card fraud in online transactions. Global adoption of similar technologies could further enhance this effect.

1.5. Raising awareness and responsibility​

Carding often uses social engineering (phishing, fake websites) to obtain user data. Standardization may include:

• Mandatory training: Companies and users will be required to undergo training in basic cybersecurity, which will reduce the likelihood of successful attacks.
• Regular audits: Audits of systems for compliance with standards will help identify vulnerabilities before they are exploited by carders.
• Penalties for violations: Standardization can introduce strict penalties for non-compliance with standards, which motivates companies to invest in security.

Example: In Australia, mandatory training for bank and retail employees led to a 25% reduction in successful phishing attacks over two years.

2. Limitations and challenges of unification​

Despite the potential benefits, global unification of standards faces a number of challenges:

1. Development gaps: Developing countries may lack the resources to implement complex standards such as biometrics or tokenization. This could create new vulnerabilities.
2. Legislative barriers: Different countries have different data protection laws (e.g., GDPR in Europe, CCPA in California). Harmonizing standards will require complex international agreements.
3. Cybercriminal Adaptation: Carders are quickly adapting to new measures. For example, after the introduction of EMV chips in the US, carders switched to online fraud (card-not-present fraud).
4. Implementation Costs: Small businesses and startups may face financial challenges when transitioning to new standards, which can slow down the process.
5. Resistance to Change: Some companies may resist standardization due to a reluctance to change established processes or due to political and economic interests.

3. Quantitative Impact Assessment​

There is no precise data on the impact of unification, as this is a hypothetical scenario, but one can rely on analogies:

• PCI DSS: The introduction of this standard in the US and Europe reduced card fraud by 20-30% in the first few years (according to Visa, 2010-2015). Global unification could further enhance this effect by closing gaps in regions with weaker security.
• 3D-Secure: In Europe, where this protocol is mandatory, card fraud in online transactions has decreased by 40% over 5 years (Mastercard, 2015–2020).
• Forecast: If unification of standards includes mandatory use of 2FA, tokenization, and modern encryption algorithms, the level of carding could decrease by 40-50% within 5-10 years by eliminating weaknesses and increasing the overall resilience of the ecosystem.

4. Practical steps for implementation​

To achieve the effect of unification, the following steps are necessary:

1. Establishing an international body: For example, expanding the role of ISO (International Organization for Standardization) to develop and oversee cybersecurity standards.
2. Step-by-step implementation: Start with basic standards (encryption, 2FA) and gradually increase the complexity of requirements.
3. Financial support: Subsidy programs for small businesses and developing countries.
4. Educational campaigns: Global initiatives to raise awareness among users and companies.
5. Monitoring and updating: Regularly updating standards to counter new threats.

5. Conclusion​

Global unification of cybersecurity standards could be a powerful tool for reducing carding by strengthening data protection, eliminating weak links, improving international cooperation, and implementing new technologies. However, success depends on overcoming technical, financial, and political barriers. In the long term, unification could reduce carding by tens of percent, but it will require constant monitoring and adaptation to new fraud methods.

If you'd like to delve deeper into a specific aspect (such as technology, legislation, or practical examples), let me know, and I can expand on this answer!