IoT Carding: When Your Smart Fridge Steals Data and Your Car Becomes a Phishing Link

[Professor]

Attacks on Internet of Things (IoT) infrastructure for fraud: From smart homes to connected cars as new vectors.​

Attacks on Internet of Things (IoT) infrastructure are no longer the stuff of hacker thrillers. By 2026, billions of poorly protected devices — from smart lightbulbs and refrigerators to industrial sensors and connected cars — have become not just targets, but platforms and tools for sophisticated fraud. This isn't hacking for sabotage, but using the IoT as a Trojan horse to steal data, blackmail, and bypass traditional security systems.

1. The smart home as a spy network and entry point​

Target devices: Smart speakers (Amazon Echo, Google Home), cameras (Ring, Nest), TVs, refrigerators, smart home systems (smart locks, sensors).

• Attack vectors for fraud:
  • Passive eavesdropping and data theft: A hacked smart speaker or camera becomes a listening device. Fraudsters can hear:
    • Conversations about finances, card numbers dictated out loud during online purchases.
    • Passwords and 2FA codes spoken by the user.
    • Family daily routine (for planning a physical break-in or attack on an empty house).
  • Phishing via trusted devices: A compromised device with a screen (smart TV, refrigerator) can display phishing messages that appear legitimate because they originate from within the home network (" Firmware update required. Enter your Netflix account information to continue ").
  • Lateral Movement Attack: A weak IoT device becomes a springboard for attacks on more important network targets, such as a laptop with banking data or a work computer. The attacker gains access to files containing autofill passwords and session cookies.

2. Connected Car as a Mobile Phishing Center and Extortion Tool​

The 2026 car is a computer on wheels with dozens of ECUs (electronic control units), a constant 4G/5G connection, and access to the owner's personal data.

• Attack vectors:
  • Data and account theft:Hacking an infotainment system gives access to:
    • Synchronized contacts, email, location history.
    • Account details for services (Spotify, Apple Music) that often use the same passwords as important accounts.
    • Payment data, if the system includes applications for paying for parking or gas stations.
  • Block-the-Car Attack: Fraudsters can remotely lock doors, disable the ignition, or take control of critical systems (brakes, steering, theoretically). They then demand a ransom in cryptocurrency to "unlock" the car. This isn't just a theory — similar attacks have been conducted by researchers.
  • Insurance Fraud: Hacking telematics (driving style data) to create evidence of "dangerous driving" or, conversely, to conceal the actual speed at the time of an accident.
  • Keyless Entry/Theft: Using repeaters to boost the signal from the key and keyless entry/start.

3. Public and corporate IoT infrastructure as a springboard for attacks​

• Smart city systems (cameras, sensors): Hacking them can be used to spy on owners of luxury cars or bank employees, identifying their routes and habits for subsequent physical or digital attacks.
• Smart office devices (printers, access control systems):
  • A hacked printer can intercept and send scanned documents, including financial reports and contracts with bank details, to fraudsters.
  • An access control system, hacked through a vulnerability in the network protocol, allows physical access to the office to install skimmers on ATMs or replace equipment.

4. IoT devices as botnet nodes for fraudulent operations​

This is a classic, but still relevant, use case. Millions of infected IoT devices are combined into botnets (like Mirai ) to:

• Massive DDoS attacks on bank or retailer websites serve as a distraction while a targeted attack on internal systems occurs.
• Spreading phishing emails and malware from millions of "white" IP addresses of home devices, bypassing spam filters based on IP reputation.
• Hidden cryptocurrency mining (cryptojacking), which is a form of resource theft.

Why is the IoT such a juicy target? Fundamental vulnerabilities​

1. Prioritizing convenience over security: Manufacturers rush to release "smart" products, skimping on security.
2. Lack of updates: Many devices do not receive security patches after purchase, or users do not install them.
3. Weak/default passwords: The famous "admin/admin".
4. No network segmentation: The IoT device is on the same network as the user's computers and phones.
5. Long lifespan: A smart kettle can last 10 years even with 2018 firmware and all its flaws.

Security in a Hackable Smart World: The New Isolation Paradigm​

Since it is impossible to make every light bulb safe, protection is based on isolation and monitoring:

1. Network Segmentation: Mandatory creation of a separate network (VLAN) for all IoT devices, preventing them from accessing the main network containing computers and data. They can only access the internet.
2. Using hardware firewalls for smart homes (e.g., Firewalla): Devices that monitor and filter all IoT traffic, blocking suspicious external connections.
3. Regular auditing and disabling unnecessary things: The constant question "does this toaster really need to be online?"
4. For cars: Disable unnecessary "smart" functions, use mechanical locks (Faraday key bag), and regularly update firmware at an authorized dealer.
5. Legislative pressure: New laws (such as the EU's IoT cybersecurity law ) require manufacturers to meet minimum security standards, ban default passwords, and mandate updates.

Conclusion: IoT is not the future, but a real battlefield for the perimeter of personal life.​

IoT fraud attacks mark the blurring of the line between the cyber and physical worlds. Fraudsters no longer have to deceive you only through a screen. They can now spy on your camera, listen through your speaker, lock your car, and use your refrigerator as a springboard to attack your bank.

The main danger lies in the normalization of risk. We've become accustomed to "smart" devices and voluntarily allow potential spies into our homes and cars. Combating this requires a fundamental rethinking of security: from the passive consumer expecting protection from the manufacturer to the paranoid administrator of their own mini-network, where every "smart" thing is considered hostile until proven isolated and harmless.

The war for data and money has shifted from the browser to the real world, making every connected thing a potential soldier in the attacker's army. Ignoring this fact is a surefire way to have your digital life hacked not through a sophisticated exploit, but through a baby monitor you bought five years ago and forgot about.