Carding

Fraudsters use stolen credit cards to purchase untraceable gift cards and goods

Fraudsters test large volumes of breached credit card data against merchants' payment processes to identify valid card details. Verified cards are subsequently sold to cybercriminals at a premium on the dark web – widening fraud liability for merchants and increasing their chargeback penalties.

Carding is also known as Credit Card Stuffing, Card Verification, Card Checking, Gift Carding, and Gift Card Fraud.

Arkose Labs prevent fraudsters from checking credit and gift card numbers automatically

Arkose Labs detect when fraudsters test card details at an increased volume or velocity and present Enforcement, a challenge–response mechanism that makes abuse cost more than the possible reward that can be earned. By removing any prospect of a return on investment, the value of carding attempts decline exponentially relative to the operational costs incurred by fraudsters By removing the prospect of accurately classifying future responses, Enforcement prevents automation at-scale and greatly increases the operational costs incurred by attackers.

Gift cards are the easiest way for fraudsters to cash out from cyber crime

Gifts cards are generally untraceable and help fraudsters turn digital crime into real-world cash. Fraudsters steal gift cards by brute forcing their combinations against online balance checkers. Gift card balance checkers are rarely held to the same level of scrutiny as other financial services, which make them an easy and highly lucrative target. When a positive balance is discovered, the gift card is sold – or ‘flipped’ – before it can be spent by the intended recipient.

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Bad actors are highly motivated to target and attack gift-card-as-payment

Learn how Arkose Labs solved gift card fraud for 90M monthly active users