Carding Fraud

What is Carding Fraud ?

Carding fraud is a type of cybercrime where criminals use stolen credit card information to make small transactions or test payments on a website. Their goal is to verify if the cards are still active before using them for larger, unauthorized purchases. This malicious activity often leads to chargebacks, blocked payment gateways, and a damaged brand reputation.

How does Carding Fraud work ?

Cybercriminals use automated bots, often called "carding bots" to test huge volumes of stolen credit card data. These bots are programmed to :

• Quickly identify valid credit card numbers.

• Make a large number of unauthorized purchases in a short amount of time.

• Mimic human behavior to avoid detection, such as varying transaction amounts or using different IP addresses.

• Overwhelm your website's checkout process with fraudulent activity, making it difficult for legitimate customers to complete their purchases.

Why is Carding Fraud so dangerous ?

• Financial Loss : It triggers high chargeback fees and penalties from banks, directly impacting your bottom line.

• Reputation Damage : It can lead to your payment gateway being blacklisted, making it difficult to process any payments. It also erodes customer trust and harms your brand image.

• Operational Strain : The massive bot traffic overloads your servers and infrastructure, slowing down your site and creating a poor user experience.

How cloudFilt protects against Carding Fraud

CloudFilt uses AI and behavioral analysis to detect suspicious payment activity in real-time. It doesn't just block known bad actors ; it intelligently identifies new and evolving threats by looking for :

• High-frequency failed transactions, a classic sign of bots attempting to validate cards.

• Unusual patterns in checkout processes that don't match human behavior.

• Known risky IPs, proxies, or device fingerprints associated with fraudulent activity.

Benefits of Carding Fraud protection with cloudFilt

By implementing CloudFilt, you get a powerful, proactive defense that :

• Prevents Costly Chargebacks : Stops fraudulent transactions before they happen, saving you money and protecting your merchant account.

• Maintains Payment Gateway Reputation : Keeps your payment gateway healthy and prevents it from being flagged, ensuring smooth transactions for all customers.

• Blocks Malicious Bots : Stops bots in their tracks without disrupting legitimate users, so your site remains fast and reliable.

With CloudFilt, you can create a safer transaction environment, reduce payment declines, and protect your business from the costly consequences of carding fraud.