Carding Attacks Definition & Impact on Go-to-Market Teams | CHEQ


Carding Attacks

Prevent bots and fake users from using your site to validate credit card information and protect against fraudulent transactions.

What are carding attacks and how do they operate?

Carding attacks involve testing lists of stolen credit information on e-commerce websites. Once the credit cards details are authenticated and confirmed working, bots can transfer funds or use them to purchase gift cards and other easily resold goods which the attacker can sell for profit.

Fraudsters also use brute force attacks to determine valid gift card account numbers and remaining balances. Sites being used for carding attacks experience transaction fraud, unnecessary resource usage, and damage to the company’s reputation with credit card processors.

Common use cases

Stolen Credit Card Verification

Your site may be used for the first step of a carding attack, which is to find out which cards on the list still work

Fraudulent Transactions

Bots use verified credit cards to buy goods, gift cards, or other items for resale on the black market or auction sites

Gift Card Balance Theft

Bots run algorithms testing potential gift card numbers and stealing any remaining balance for their own use

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Fun Fact

$40 billion in losses are expected for 2023 as a result of carding fraud, according to Norton Lifelock. A LexisNexis Risk Solutions study of eCommerce retailers found that 51-55% of payment fraud losses were carding attacks.

What are the threats to
the Go-to-Market Operation?

  • Companies experiencing carding attacks can suffer significant revenue losses through chargebacks, which require resources to resolve while also refunding the payment and lost inventory.
  • Allowing bots to process transactions with stolen personal information (PII) and credit card information on your site opens your company to compliance scrutiny and security risks.
  • Carding attacks can affect your relationship with your payment processor by damaging your reputation, resulting in higher transaction fees, more frequently blocked transactions, and stricter authentication methods.


Secure your site from carding attacks

CHEQ provides a layer of visibility over all bots and fake users coming to your site, allowing you to manage, mitigate, and block malicious actors looking to cause harm or commit fraud.

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