What is Carding in eCommerce? The Dark Side of Online Fraud

What is Carding?

Carding is a type of cybercrime in ecommerce where fraudsters use stolen credit card details and automated bots to test which cards are valid. This process, also called credit card stuffing, falls under automated transaction abuse.

The stolen data used in carding includes the cardholder’s name, credit card number, expiration date, CVV code, ZIP code, and birthday. Once verified, the valid card details are used for purchases or resold on the dark web.

Fraudsters deploy botnets to test stolen card details by attempting small transactions on different online platforms. These bots systematically enter various credit card number, expiration date, and CVV code combinations until a transaction is approved. Once authenticated, the fraudster can use the card to:

• Buy and resell gift cards
• Clone a physical credit card
• Sell the stolen data to other criminals

How Do Carding Attacks Work?

A typical carding attack follows these steps:

1. Fraudsters get a list with stolen credit card details — via phishing scams, data breaches, or purchasing leaked information from the dark web.
2. Bots test stolen card details — Fraudsters use botnets to automate small-value transactions and identify active cards.
3. Valid cards are exploited — Attackers compile and use the verified data to withdraw funds, make purchases, or resell the information.

Why Do Fraudsters Use Bots in Carding Attacks?

Malicious bots play a critical role in carding attacks by enabling fraudsters to test thousands of card combinations at scale, quickly and efficiently.

• Automation: Bots conduct thousands of rapid-fire transactions, making manual detection nearly impossible.
• IP masking: Attackers use proxies and VPNs to change their IP addresses constantly, bypassing traditional fraud detection methods.
• 24/7 operations: Bots run nonstop, continuously verifying stolen card information.

The Risks of Carding for Businesses

Carding attacks don’t just hurt consumers; they also create serious risks for online merchants:

• Chargebacks & Financial Losses — High levels of fraudulent transactions lead to chargebacks, increasing operational costs.
• Reputation Damage — Customers lose trust in merchants that experience frequent fraud incidents.
• Payment Processing Penalties — Processors like Visa and Mastercard fine businesses for excessive fraudulent transactions and may terminate merchant accounts.
• Transaction Freezes — Payment processors suspend transactions when suspicious activity is detected, leading to lost revenue.

What is Gift Card Cracking?

Gift card cracking is a variation of carding where fraud bots systematically test gift card numbers on retailer websites to find valid ones. Since gift cards lack personal identification details, they are easy for fraudsters to exploit.

Criminals frequently target websites with gift card balance check pages that have weak security protections. Once identified, stolen gift card balances are either used for purchases or resold on the dark web.

How to Spot a Carding Attack

Carding bots may attempt to mimic normal visitor behavior, but certain red flags can reveal their fraudulent intent. By monitoring these key indicators, businesses can detect and mitigate carding attacks before they escalate.

Unusual Payment Behavior Patterns:

High Volume of Declined Transactions: A surge in failed payment attempts may indicate bots systematically testing stolen card details.

Frequent Low-Dollar Transactions: Fraudsters often make small purchases ($1–$5) to verify card validity before attempting larger fraud.

Checkout & Shopping Cart Anomalies:

Abandoned Cart Spikes: An increase in abandoned shopping carts suggests bots failing authorization checks.

Repeated Visits to Checkout Pages: Bots may reload checkout pages multiple times to cycle through stolen card details.

Location & Device Red Flags

Multiple Transactions from a Single IP Address: Bots often cycle through numerous stolen cards from one location.

Use of Proxies or VPNs: Fraudsters frequently use IP masking tools, causing geolocation inconsistencies (e.g., a U.S. billing address used with a foreign IP).

Mismatched Payment Details

Different Billing & Shipping Addresses: Stolen cards often come from various sources, leading to mismatched information.

Unusual Email Addresses: Temporary or random email domains indicate fraudulent accounts.

Speed & Frequency of Transactions

Too Many Transactions in a Short Time: A real customer won't make dozens of purchases within seconds—bots will.

Unrealistic Typing & Navigation Speed: Automated scripts complete checkout details much faster than a human.

Repeated Use of the Same Card on Multiple Accounts

Fraudsters often rotate the same stolen credit card across numerous fake accounts to bypass fraud detection mechanisms.

By recognizing these warning signs, businesses can proactively implement security measures to stop carding fraud in its early stages.

Traditional Fraud Prevention Methods and Their Limitations

Many online businesses rely on outdated security measures that are ineffective against today’s sophisticated bot-driven fraud:

• CAPTCHAs: Easily bypassed by advanced fraud bots and human fraud farms.
• IP Blocking: Fraudsters use botnets, VPNs, and rotating proxies to disguise their activity, making IP blocking ineffective.
• Rate Limiting: While limiting the number of requests from an IP can slow attacks, bots can distribute attacks across thousands of IP addresses.
• Manual Fraud Reviews: Reviewing every flagged transaction is time-consuming and expensive.

How to Stop Carding Attacks

Stop carding attacks in ecommerce with a fraud solution, like Anura, that accurately distinguishes between legitimate visitors and bots/human fraud. This way you stop the problem before it even happens and before fraudsters can even reach your website.

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