Stolen Card Fraud
When a card holder loses or has their credit card stolen, it is possible for the thief to make unauthorized purchases on that card up until the card is cancelled. A thief can potentially purchase thousands of dollars in merchandise or services before the card holder or the bank realize that the card is in the wrong hands. Self-serve payment systems such as gas stations are also highly prone to accepting a stolen credit card, as there is no verification of the card holder's identity. However, many stations are trying to prevent this by adding a check requiring the user to key in a zip code. The zip code must match the code registered to the credit card or the transfer will fail.
Account Takeover Fraud
There are two types of fraud within the identity theft category, application fraud and account takeover. Application fraud occurs when criminal use stolen or fake documents to open an account in someone else's name. Criminals may try to steal documents such as utility bills and bank statements to build up useful personal information. Alternatively, they may use counterfeit documents for identifications purposes. Account take-over involves a criminal trying to take over another person's account, first by gathering information about the intended victim, then contacting their bank or credit issuer - masquerading as the genuine cardholder - asking for mail to be redirected to a new address. The criminal then reports the card lost and asks for a replacement to be sent. The replacement card is then used fraudulently.
Credit Card Mail Order Fraud
Using a stolen credit card number, or computer generated card number, a thief will order stolen goods. This type of fraud is now known as "Card Not Present" (CNP) referring to card transactions that are requested by mail, telephone or over the Internet when the cardholder is not present at the point of sale. VISA points out that CNP merchants must take extra precaution against fraud exposure and associated losses. Anonymous scam artists bet on the fact that many fraud prevention features do not apply in this environment. 3-D Secure™ is an authentification protocol developed by Visa and MasterCard to protect online card payments, in which the card owner has to register with the issuing bank.
Skimming
Skimming is the theft of credit card information by a dishonest employee of a legitimate merchant, manually copying down numbers, or using a magnetic stripe reader on a pocket-sized electronic device. Common scenarios for skimming are restaurants or bars where the skimmer has possession of the victim's credit card out of their immediate view. The skimmer will typically use a small keypad to unobtrusively transcribe the 3 or 4 digit Card Security Code which is not present on the magnetic strip.
Many instances of skimming have been reported where the perpetrator has put a device over the card slot of a public cash machine (Automated teller machine), which reads the magnetic strip as the user unknowingly passes their card through it. These devices are often used in conjunction with a pinhole camera to read the user's PIN at the same time.
To prevent this type of fraud, cards in countries such as the UK are issued featuring a smart chip with public key encryption. The chip cannot be copied, but the card number, expiry date and security code can be, and this set of data is often sufficient to use the victim's credit card account for fraudulent purposes with so-called "card not present" transactions, e.g., manual input, over the telephone or internet.
Carding
Carding is a term used by fraudsters for a process they use to verify that sets of stolen credit card data are still valid. The fraudster will present each set of credit card details in turn on a website that has real-time transaction processing, making a purchase for a very small monetary amount so as not to use up the card's credit limit, and so as not to attract the attention of a human reviewer to the transaction. A website known to be susceptible to carding is known as a cardable website.
Often, an online donation site for a charity is used instead of an eCommerce merchant, since there is no need to find an item of a suitable price to put in the virtual shopping cart, nor to supply shipping details. The carder may do this manually with a web browser, or may write automated software to interface to the website's checkout or billing forms.
In the past, carders used to use computer programs called "generators" to produce a sequence of credit card numbers, and then test them to see which were valid accounts. Another variation would be to take false card numbers to a location that does not immediately process card numbers, such as a trade show or special event. However, this process is no longer viable due to widespread requirement by internet credit card processing systems for additional data such as the billing address, the 3 to 4 digit Card Security Code and/or the card's expiry date, as well as the more prevalent use of wireless card scanners that can process transactions right away.[1] Nowadays, carding is more typically used to verify credit card data obtained directly from the victims by Skimming or Phishing.
Skimming Method - Im not Teaching u Guys :) just be aware!
When a card holder loses or has their credit card stolen, it is possible for the thief to make unauthorized purchases on that card up until the card is cancelled. A thief can potentially purchase thousands of dollars in merchandise or services before the card holder or the bank realize that the card is in the wrong hands. Self-serve payment systems such as gas stations are also highly prone to accepting a stolen credit card, as there is no verification of the card holder's identity. However, many stations are trying to prevent this by adding a check requiring the user to key in a zip code. The zip code must match the code registered to the credit card or the transfer will fail.
Account Takeover Fraud
There are two types of fraud within the identity theft category, application fraud and account takeover. Application fraud occurs when criminal use stolen or fake documents to open an account in someone else's name. Criminals may try to steal documents such as utility bills and bank statements to build up useful personal information. Alternatively, they may use counterfeit documents for identifications purposes. Account take-over involves a criminal trying to take over another person's account, first by gathering information about the intended victim, then contacting their bank or credit issuer - masquerading as the genuine cardholder - asking for mail to be redirected to a new address. The criminal then reports the card lost and asks for a replacement to be sent. The replacement card is then used fraudulently.
Credit Card Mail Order Fraud
Using a stolen credit card number, or computer generated card number, a thief will order stolen goods. This type of fraud is now known as "Card Not Present" (CNP) referring to card transactions that are requested by mail, telephone or over the Internet when the cardholder is not present at the point of sale. VISA points out that CNP merchants must take extra precaution against fraud exposure and associated losses. Anonymous scam artists bet on the fact that many fraud prevention features do not apply in this environment. 3-D Secure™ is an authentification protocol developed by Visa and MasterCard to protect online card payments, in which the card owner has to register with the issuing bank.
Skimming
Skimming is the theft of credit card information by a dishonest employee of a legitimate merchant, manually copying down numbers, or using a magnetic stripe reader on a pocket-sized electronic device. Common scenarios for skimming are restaurants or bars where the skimmer has possession of the victim's credit card out of their immediate view. The skimmer will typically use a small keypad to unobtrusively transcribe the 3 or 4 digit Card Security Code which is not present on the magnetic strip.
Many instances of skimming have been reported where the perpetrator has put a device over the card slot of a public cash machine (Automated teller machine), which reads the magnetic strip as the user unknowingly passes their card through it. These devices are often used in conjunction with a pinhole camera to read the user's PIN at the same time.
To prevent this type of fraud, cards in countries such as the UK are issued featuring a smart chip with public key encryption. The chip cannot be copied, but the card number, expiry date and security code can be, and this set of data is often sufficient to use the victim's credit card account for fraudulent purposes with so-called "card not present" transactions, e.g., manual input, over the telephone or internet.
Carding
Carding is a term used by fraudsters for a process they use to verify that sets of stolen credit card data are still valid. The fraudster will present each set of credit card details in turn on a website that has real-time transaction processing, making a purchase for a very small monetary amount so as not to use up the card's credit limit, and so as not to attract the attention of a human reviewer to the transaction. A website known to be susceptible to carding is known as a cardable website.
Often, an online donation site for a charity is used instead of an eCommerce merchant, since there is no need to find an item of a suitable price to put in the virtual shopping cart, nor to supply shipping details. The carder may do this manually with a web browser, or may write automated software to interface to the website's checkout or billing forms.
In the past, carders used to use computer programs called "generators" to produce a sequence of credit card numbers, and then test them to see which were valid accounts. Another variation would be to take false card numbers to a location that does not immediately process card numbers, such as a trade show or special event. However, this process is no longer viable due to widespread requirement by internet credit card processing systems for additional data such as the billing address, the 3 to 4 digit Card Security Code and/or the card's expiry date, as well as the more prevalent use of wireless card scanners that can process transactions right away.[1] Nowadays, carding is more typically used to verify credit card data obtained directly from the victims by Skimming or Phishing.
Skimming Method - Im not Teaching u Guys :) just be aware!
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