What are Credit card Frauds and characteristics that allow fraud?

Banking & FinanceSafe & SecurityCyber Security

Credit card fraud is a theft that is committed using the credit card information obtained by stealing and committing fraudulent transactions.

Risks

The risks associated with credit card frauds are as follows −

  • Not noticing fake credit cards − Due to rush in the business hours, it may be a possibility that the business fails to recognize fake credit cards and incur losses.

  • Matching signatures and names on ID − Sometimes it happens that the business overlooks the signature of the beholder to be present mandatory on the credit card.

  • Storing credit card details − The details may be stored by the service provider to charge you later in bits and without even your knowledge.

Credit Card fraud may lead to huge debts for the holder, losses for the business in case of fraudulent ID cards, charge backs by the service providers from the customers.

Characteristics

Let us see the characteristics of credit card numbers which allow credit card frauds −

Generation of credit card numbers using BIN (Bank Identification Numbers)

If an issuer does not use random number generation, there is a possibility for an attacker to obtain one working card number and generate more valid card numbers. This is essentially called a BIN attack, but the possibility is very low due to the presence of valid/expiry date and CVV.

Publicly visible credit card numbers

Credit cards have their numbers printed prominently on them. This allows an attacker to perform 'skimming'. In this method, the attacker acquires the victim's card number using basic methods such as photocopying receipts or more advanced methods such as using a skimmer to swipe and store the victim's card numbers.

Susceptible to 'checker' attacks

Credit card numbers have checksum, BINs and other features that can be used to identify the bank, account and even region of a credit card. An attacker looking to verify details of a card generated by "generators" can use a website that has real-time transaction processing to perform a transaction of a small amount to verify whether the credentials are correct. Such websites are called card-able websites.

Alternative payment methods include money service businesses (MSBs), peer-to-peer (P2P) payments, E-Wallets, prepaid cards, vouchers, bank debits and credits or linked bank accounts and cryptocurrencies.

An upcoming, less susceptible method of payment is cryptocurrency. In this case, only an account number is visible. An attacker cannot perform any compromising attacks using only the 'wallet' number. These currencies and wallets are themselves protected with many cryptographically secure algorithms to prevent attacks. Moreover, all transactions are recorded publicly and are anonymous.

raja
Updated on 21-Mar-2022 12:39:57

Advertisements