Carding and other types of financial fraud can be prevented with modern technologies and security rules. Here are legal and effective methods used by banks, payment systems and ordinary users.
Turn on notifications for all transactions.
Use virtual cards for online purchases.
Do not tell anyone:
Check the links:
If you need help setting up security, just ask!
1. Protection of banks and payment systems
1.1. EMV chips (cards with a chip)
- How it works:
- Each transaction generates a unique cryptogram.
- Even if the card data is stolen, it cannot be reused.
- Why it is effective:
- Replaces vulnerable magnetic stripes.
- Reduces the risk of card cloning.
1.2. Tokenization (Apple Pay, Google Pay)
- How it works:
- The real card number is replaced with a one-time token.
- Even if the token is stolen, it is useless for other payments.
- Where it is used:
- Contactless payments, online payment.
1.3. 3D Secure 2.0 (two-factor authentication)
- How it works:
- The user confirms the payment via SMS, push notification or biometrics.
- Why it is effective:
- Even if the fraudster has found out the card number, the payment will not go through without 2FA.
1.4. Anti-fraud systems (AI and machine learning)
- How it works:
- Analyzes customer behavior (geolocation, typical payment amounts).
- Blocks suspicious transactions (for example, sudden transfers abroad).
- Examples:
- Falcon (FICO) – used by Visa.
- IBM Safer Payments – analyzes transactions in real time.
2. How can users protect themselves?
2.1. Safe use of cards
Turn on notifications for all transactions. Use virtual cards for online purchases. Do not tell anyone:- CVC/CVV (3 digits on the back).
- Codes from SMS (3D Secure).
2.2. Phishing protection
Check the links:- The official website of Chase Bank is chase.com, not chasebank-support.com.
Do not open attachments in suspicious emails.
2.3. Two-factor authentication (2FA)
- Best practices:
- Google Authenticator / Microsoft Authenticator (TOTP-коды).
- Hardware keys (YubiKey).
- What is unsafe:
- SMS codes (can be intercepted via SIM swapping).
3. Protection of business (merchants)
3.1. PCI DSS (security standard)
- Mandatory for all who accept cards.
- Requirements:
- Encryption of card data.
- Regular security audits.
3.2. Protection against skimming
- For shops:
- Checking terminals for defects.
- Employee training.
- For websites:
- Protection of payment forms (HTTPS, WAF).
4. What to do if the card is compromised?
- Call your bank immediately to block it.
- Check your transaction history.
- File a report with the cyber police (if the money was stolen).
Conclusion
- EMV, tokenization and 3D Secure are the main security technologies.
- AI-based anti-fraud systems detect fraud in real time.
- It is important for users to practice digital hygiene (do not forward CVC, check for phishing).
If you need help setting up security, just ask!
