Methods of carding work

[chushpan]

What is carding?​

Carding is an illegal activity involving the use of stolen bank card data to steal funds or commit fraudulent transactions. It is one of the most common forms of cybercrime and involves collecting, selling, and using card data for financial gain.

Methods of carding work​

Carding involves several stages and methods that attackers use to achieve their goals. Let's look at the main ones:

1. Collecting card data​

a. Phishing​

• Attackers create fake websites or send emails that imitate legitimate organizations (for example, banks or online stores).
• Users enter card details on these sites without knowing their authenticity.

b. Malicious software (Trojans)​

• Programs such as Zeus, Emotet or Gozi steal data from infected computers.
• They can intercept data from input forms, log keystrokes (keylogging) or copy cookies.

c. Skimming​

• Devices installed on ATMs or POS terminals read data from the card's magnetic strip.
• Additionally, cameras can be used to record PIN codes.

d. Data leaks​

• Hackers hack into databases of banks, merchants or payment systems to steal card data.
• This data is then sold on the black market.

e. Social engineering​

• Fraudsters fraudulently obtain card details through phone calls or messages.

2. Checking card data​

After collecting the data, the cards are checked for functionality:

• Authorization: Attackers conduct test transactions of small amounts (e.g. 1-5) to check if the card is valid.
• Use of bots: Automated systems check card data on various platforms.

3. Using these cards​

a. Online shopping​

• The stolen data is used to make purchases in online stores where a physical card is not required.
• Carders often purchase items with high liquidity (such as electronics or gift cards).

b. Cloning cards​

• Data is written onto blank plastic using an MSR encoder.
• Cloned cards are used to withdraw cash from ATMs or pay in stores.

c. Money transfers​

• Fraudsters transfer money from stolen cards to other accounts or e-wallets (for example, PayPal, Skrill).

d. Payment for services​

• Card data is used to pay for subscriptions, mobile communications, the Internet or other services.

4. Selling data on the black market​

If the attacker does not plan to use the data himself, he can sell it on the darknet:

• Prices depend on the quality of the data:
  • A card with CVV, expiration date and Billing Address costs more.
  • The "dump" (magnetic stripe data) also has its own cost.

5. Cashing out funds​

a. Using "mules"​

• Fraudsters hire people ("mules") who withdraw money from cloned cards or receive goods.
• This reduces the risk of being caught.

b. Transfer to cryptocurrencies​

• Stolen funds are converted into cryptocurrencies (such as Bitcoin) to make tracking more difficult.

c. Money laundering​

• Funds are passed through multiple accounts or services to hide their origin.

6. Carding protection​

To protect against carding, it is important to take the following measures:

For users:​

• Do not enter card details on suspicious websites.
• Use two-factor authentication (2FA).
• Check your statements regularly and report any suspicious transactions.
• Install antivirus software to protect against Trojans.

For banks and merchants:​

• Use encryption and tokenization technologies.
• Implement Fraud Detection Systems.
• Provide training to employees and customers.

Conclusion​

Carding is a complex, multi-stage scheme that involves collecting, verifying, and using card data. To protect against this threat, it is important to implement comprehensive security measures, including encryption, monitoring, and education. However, user awareness is key, as many attacks are based on social engineering.

If you have additional questions about carding methods or how to protect yourself, please ask!