Cyber fraud cases are on the rise today, and it is inevitable that your eCommerce store will be a target of carding attacks soon. Online retailers selling customers’ information to carding websites are being attacked by more and more amateur fraudsters. It has become a matter of worry for retailers, especially small businesses, who believe that they will soon be attacked by fraudsters.
Now, the question is what can be done to prevent carding attacks? There is no specific solution to this problem, but we can take safety precautions by keeping stores secure and improving safety measures.
Carding is a form of online theft that involves the theft of credit card information by fraudsters. Well, this is nothing you should be afraid of while making a purchase anytime because many customers are already scared when they think about making a purchase online. You may have seen people avoid online purchases due to online fraud, so they can’t enjoy the convenience.
We will explain what is carding attack, why eCommerce store owners should think about it, and what could be the possible solution to prevent such a highly risky and dangerous attack from occurring.
What is Carding Attack?
Carding is a form of online fraud in which fraudsters steal the credit card information of shoppers. A variety of eCommerce store websites are tried to determine whether the credit card is functioning or not.
Taking the right steps to secure your store is essential in today’s world, when security has become a common concern. Online fraudsters use a variety of carding attacks to steal information.
The carding attack can take many forms, as they are used to obtain different information about the card. Fraudsters use multiple cards repeatedly to check whether a card is running or not. They use multiple cards with the same information from the same IP address.
Here’s an overview and detailed explanation about how fraudsters use credit cards and attack eCommerce stores. Fraudsters obtain credit cards from marketplaces and websites by compromising payment channels. Many fraudsters use bots to steal the data of small business owners.
When attackers get a number of credit cards from such activities, they check how many cards are running and how many are not to determine if they are successful. This is how credit card fraud is carried out by fraudsters to steal customer data.
How Does It Affect eCommerce?
The most important thing we’ve learned so far is what a carding attack is and why it’s the most dangerous. Carding attacks are generally intended to obtain goods or cash from cards, and this can be concerning. Before you become a victim of a carding attack, you or your store must take care of a few things.
If the attackers steal the card information, they can use it to buy things without authorization, but also suffer from the negative consequences of their eCommerce sites. Chargebacks are attacks where the merchant reverses disputed purchases because of the carding attack on them.
Chargebacks, in addition to requiring merchants to pay fees and penalties, can negatively impact a merchant’s standing with card processors as well as with consumers. This will negatively affect the bottom line and negatively impact customer loyalty.
What are the Popular Carding Websites and Forums?
The exploitation of credit card data, carding methods, and results of carding attacks is the purpose of carding websites and forums, which are illegal.
Individuals who resell credit card information to criminals for use on the dark web and groups of criminals seeking bulk credit card data to fraudulently purchase goods online are the most common users of these forums.
Websites and forums that sell stolen card information are masked with TOR browsers and charged in cryptocurrency to prevent authorities from tracking them. A data breach at BriansClub, a popular website for selling stolen credit card information, resulted in an estimated loss of $4 billion.
How to Prevent Your E-Commerce Store from Carding Attack?
Detecting and preventing payment carding can best be accomplished by integrating a multipart payment review process. An additional layer of protection keeps your online store safe from cybercriminals and hinders carding activity. By comparing the data and slowing down fraudsters’ actions, the system detects and stops fraudulent activities.
1. You can Prevent Most Spam with CAPTCHA
In recent years, progressive challenges such as CAPTCHA puzzles have become more widespread. CAPTCHAs are used to prevent automated payment attempts, hence the requirement for human input to solve them.
Your online store becomes less attractive as a target for fraudsters by forcing them to manually process payments.
It is important to understand that implementing a Captcha validation to your checkout will reduce your conversion rates due to the disruption in user flow. Thus, CAPTCHAs haven’t been a common check-out requirement.
2. You Can Incorporate Authorization
The first step in a credit card purchase is to authorize the purchase, then to capture the funds. This authorization is typically used when a customer’s credit card is approved for a payment up to a certain amount, although the exact charge is unknown.
Authorisation occurs when the vendor reaches the exact payment amount, which they cannot exceed in order to capture funds from a credit card. If you decide to use this method on your online store, you can review the transactions while they are being processed. If you believe you have been targeted by carding, do not capture the funds.
If you have already captured the chargeback, it is advisable to issue the refund immediately rather than waiting for the customer to file a chargeback, which may result in the termination of the seller’s account and the imposition of trading restrictions.
The Final Verdict
Credit card fraud is becoming a significant concern for eCommerce business owners as fraudsters are actively seeking out stores with low-security levels. Following the steps above can help you maintain your store’s security as a precaution.
Do you need help preventing carding attacks on your store? M-Connect Media can help. We have an in-house team of eCommerce consultants and Magento certified developers who can help you keep your store secure from carding attacks. If you would like more information, please contact us.