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Many people have already suffered from the so-called carding or credit card frauds. This type of fraud involves getting access to someone’s credit card and stealing money from it, however it is not that simple.
The losses from carding increase from year to year alongside with the development of electronic commerce. The more people use their credit cards online, the more opportunities there are for carders to steal money.
In most cases the carding chain contains several key steps:
1. Obtaining the data, which is needed to make a purchase
2. Purchasing goods online
3. Reselling the abovementioned goods
In order to be aware of the fraud scheme, it is necessary to analyze each of the steps of carding chain.
How do carders obtain the data
There are many ways for carders to reach the credit or debit card information of a user. The most popular of them are:
• Phishing
• Skimming
• Hacking
• Purchasing the data from the dark web
Phishing, the first way of obtaining the information, involves creating a copy of a trusted website with slight changes in domain, so that a regular user might not notice the substitution and enter the credit card information directly to the hands of the carder.
Skimming is using small terminals to scan the credit card magnetic line and reach the necessary information. The criminals might even install such devices on top of ordinary card terminals, stealing information of every card used in such terminal.
Hacking involves using breaches in security of credit card databases. The credit card information is stored by many enterprises, which provide an option of online payment, and these enterprises might be hacked in order to steal that information.
Purchasing the data from the dark web is the simplest option for a carder, as it does not involve any actions other than paying money and testing the data. In most cases, the carders, who follow one of the other three ways, do not use the card data themselves. They sell it on the dark web to reduce risks of being caught by the police.
As the industry of carding is rapidly growing, banks and other enterprises, interested in keeping cardholders safe, invent new methods of protection, such as double authentication, transaction confirmation and other, but it is always only a matter of time until carders find breaches in such methods.

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