What is Card Testing?A Little Fraud First… & a Lot of Fraud Later
Card Testing Fraud: What it is & Why Fraudsters Do it
Imagine this: you’re running an eCommerce store, and you suddenly get hundreds of small orders. Are you finally getting an influx of demand? Is your growth strategy paying off?
Unfortunately, it’s unlikely to be anything good. Being inundated with a large number of low-value transactions could be an indicator that scammers are using your checkout environment to test stolen cards.
Worse, if you do nothing about it, you’re probably going to find yourself swamped with higher-value, fraudulent orders that are inevitably going to turn into chargebacks. In this article, we’ll take a closer look at what card testing is so that you know what to look out for.
Card Testing
Criminals validate stolen credit card information by making small, inconspicuous purchases. Once they confirm the card details are valid, they may proceed to make larger unauthorized transactions. This tactic helps fraudsters avoid detection until they have successfully exploited the stolen card.
What is Credit Card Testing?
- Card Testing
Card testing, also known as “card cracking,” is a type of credit card fraud that involves testing the validity of a credit card to determine if it's a valid, active card. This is done by charging a small amount to the card. If the charge goes through, the fraudster knows that the card is active and can then use it for larger purchases.
[noun]/kärd • test • iNG/
Card testing is often an incremental process. Because the transaction is so small, it can be easy to write off as a minor concern. However, these little experiments in fraud can add up pretty quickly.
Card testing has gained a lot of popularity with fraudsters in recent years. This is because it’s extremely subtle; to the point of being undetectable. It can also provide an opportunity for fraudsters to identify the best candidates for long-term theft.
All things considered, it’s no wonder that card testing surpassed phishing and identity theft to become the most common fraud attack globally in 2021.
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Why Do Fraudsters Engage in Card Testing?
The popularity of card testing has a lot to do with the increased availability of credit card numbers. It’s also due to advancements in technology, improved security measures, and increased use of online transactions.
Credit card testing is a method that fraudsters use to minimize their risk of detection and maximize their potential profits. This is because, when a fraudster uses a stolen credit card number for a large purchase, there is a higher risk of detection. Merchants may notice suspicious activity and block the user, which would prevent the fraudster from making further purchases.
By testing the validity of a credit card through small purchases, the fraudster can determine if the card is active and not yet canceled. This helps to minimize the risk of detection and increase the chances of successfully using the card for larger purchases.
Some fraudsters may test multiple cards at once. When one has access to a large volume of credit card numbers (such as after a data breach), they can use credit card testing to validate the cards and identify which ones are active and valid. This allows them to focus on using the active cards for larger purchases, maximizing their potential profits.
