Did you know that there is a market for stolen credit cards? The black market is a multi-million dollar business devoted to buying and selling credit cards that cause your business to lose out on its revenue. Due to the fact that credit cards are the primary form of payment, this information can be stolen by hackers at record speed.
As long as eCommerce exists, and purchases are being made online, the black market will stay alive. It is up to us to fight these hackers and stop the fraudulent behavior. Preventing chargebacks helps businesses keep their merchant accounts from being closed.
If you are unaware of the black market that targets stolen credit cards, you are in for a surprise. For as little as $6.00 or less, fraudsters can purchase stolen credit and debit card information and even pick what part of the country or state they want it from. The fact is that thieves no longer have to skim or clone cards to steal data from the magnetic stripe on the back of credit and debit cards; instead, thieves use the stolen cards of their choice to fill up their online shopping carts and pay with unsuspecting consumers’ stolen information at checkout. This leads to countless troubles, including loss of revenue, spikes in chargebacks, consumer disputes, and the loss of valuable time and energy.
In 2014, there were a total of 1500 data breaches that were reported; this does not include the breaches that go unreported each year. Discovering that a breach has taken place could take a while. In the meantime, that stolen data is placed on the black market, where fraudsters sell the information for all that it is worth – and then some!
Brokers typically acquire the stolen credit card numbers in bulk or wholesale before reselling. The type of information available on each specific card will determine how much carders (thieves) buy this stolen data for. For instance, Visa cards with high credit limits are generally sold at a higher price, in comparison to other credit card types with lower credit limits, or less available information. Frighteningly, the hackers are so sure of their products that they offer carders the stolen credit card with a guarantee; if the card is blocked or declined by a merchant, a valid replacement card will be issued.
There are a number of ways profit can be generated from these cards. Some will use them directly on sites in attempts to purchase physical goods, while others will use them to purchase another form of payment that can be reused, such as prepaid cards or virtual currency. After the prepaid card has been purchased, the carder will then use the card to purchase valuable items, such as computers, cell phones, game consoles, and more, as they now have more control over the card details they choose to use and enter. The carder will then maintain these purchased goods, or choose to resell them for a profit.
The rate at which the information is selling is alarming, and as online sales continue to be processed, it is not going to slow down. So what can you do? Put proven security systems into place, such as Complete Pay, Verifi CDRN, and Ethoca. We offer these solutions at Pinpoint Intelligence to help merchants implement a smarter risk strategy, stop online fraud, and reduce future chargebacks. By detecting the fraudulent transactions pre-gateway and as early as the shopping cart, a merchant has the ability to act as quickly and efficiently as the original hackers that are selling the stolen credit and debit cards on the black market to begin with.
Do not wait to learn about the credit card fraud after the goods and services have been stolen or delivered. Put the proper security measures in place to stop the charges from being made, and prevent thieves from cashing out!