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The Fraudsters
Playbook
FRAUDSTER
BRIAN
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2
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5
he Wi-Fi crack:
T
Savour the smell of
freshly roasted coffee
Next time youre stopping by your favourite coffee shop for a skinny white decaff and
to catch up on emails between meetings, make sure that you use the venues official
Wi-Fi network
One of the fraudsters latest ploys to steal identities is to sit in a coffee shop that offers
free Wi-Fi to its customers and the fraudster will use his or her laptop to broadcast a
wireless network thats named exactly like the venues official Wi-Fi. The fraudster will
use that as a jumping off point to get to know their ID theft victim. Heres how the
fraudster does it
welcome
1
ONLINE
SHOPPING
ACCOUNT
STATEMENT
SOCIAL
MEDIA
WALL
ONLINE
BANK
STATEMENT
ONLINE
BANK
STATEMENT
MEDIA
he local government
T
census: The fraudster
always knocks twice
Next time you get a knock on your door and its a charity collector or somebody
purporting to conduct a local census, beware who you give your data to
Heres how an organised criminal gang worked in teams to harvest large volumes of
identities for fraud by pretending to be conducting a local government census and
canvassing householders for identity details
To
our serve
citiz
ens
he local government
T
census...continued
Heres how the operations and remuneration of such an organised gang works
The Master
Owns, uses or sells the identities on carder
forums. Has a handful of trusted fraudsters
who serve as his captains in this exploit
and play roles in the actual usage of the
identities.
The Captains
Recruit, brief, and manage the soldiers.
Captains, AKA the 10% man, get paid
a percentage of their Masters frauds.
The Soldiers
Get paid 5 or $10 for every identity
they obtain.
Much has been said in the press about how fraudsters use social media to aid the
identity theft process. As a result, many social media users now dont allow people
they are not connected with to see their profile and details. Heres an exclusive insight
into fraudsters social media savvy to get past privacy settings
BRIAN
FRAUDSTER
FRAUDSTER
BRIAN
FRAUDSTER
BRIAN
FRAUDSTER
BRIAN
he loyalty discount
T
offer: If it looks too
good to be true...
Its important to remember that fraud is just a confidence trick. Sometimes ID theft is
achieved via technological means but sometimes its just the fraudster and their wits
concocting an offer that enables them to commit ID theft and walk away with the
means to commit card fraud.
Heres how one fraudster uses little more than the phone book to get hold of credit
card details
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he loyalty discount
T
offer ...continued
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he Fraud Forums:
T
Pop to the market
and buy some data
Card fraudster communities on the web where fraudsters trade card numbers and
bank account details continue to thrive, hidden in the murky reaches of the web even
though the FBI and the UKs National Crime Agency occasionally shut them down.
These carding sites drive the underground economy in card fraud and there is
a complex ecosystem of contractors who provide their specialist skills to help
fraudsters obtain stolen identities.
Botnet
Herders
Spammers
Malware
Authors
Phishers
Bank Data
Stealers
Carders
Money Mules
ID Thieves
Cashiers
Plastic, Encoders
and P.O.S. Vendors
Drops
A recent paper by leading criminologists Webber, Shadbolt and Yip1 highlights the
range of contractors and skills that come together to drive identity theft and the
resulting identity fraud and card fraud that fraudsters implement.
Fraudsters are currently being more discerning about what data they are buying from the
ID thieves. This is in part due to a high fail rate when fraudsters buy card details that dont
work. A scan of customer reviews on carder sites suggests that a success rate of 60%
on purchase card data is a good yield. Grade 1 cards are unused and dependent on
credit limit are generally sold for 100 or $200 each, whilst Grade 2 cards are secondhand and sell for 50 or $100 each on the
premise that they are more likely to have been
cancelled and therefore fewer will work.
As such, fraudsters are now more targeted
in the data that they purchase and the cards
that they are interested in. In particular
fraudsters will look to buy cards that begin
with a specific 6 numbers (known as the
Issuer or Bank Identification Number) that
belong to cards issued some time ago. The
tactic here is that older cards belong to older
cardholders who have a better line of credit
than younger cardholders.
1 Why Forums? An Empirical Analysis into the Facilitating Factors of Card Forums. Michael Yip, Nigel Shadbolt and Craig Webber
Vunerability
Finders
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he fraud forums
T
...continued
Stock in online carder shops is commonly replenished by way of data breaches from
online retailers and payment processors.
Sometimes of course tokenisation by the retailer or the processor means the ID
thieves come away with only partial card digits. That however doesnt stop the
fraudsters who are ready to buy more than just the card numbers. The customer email
address, username, password and billing and delivery address are of immense value
to fraudsters.
13
Bank
1234 5678 12
Cardholder
Bank
8
4 567
123
5678
1234
lder
Cardho
seconds
Sites using Jumio offer their
customer the option to checkout
by scanning their card with their
device camera or webcam.
40
20
55
5
Key Entry
Jumio customers
enjoy an average
18 - 33%
shopping cart conversion
increase
0.04
52
55
9
0.02
Key Entry
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