01 Background

The Escalating Threat of Online Card Fraud

The rapid expansion of global e-commerce has brought unparalleled convenience but also opened vast opportunities for sophisticated fraud. Credit card fraud, a pervasive cybercrime, poses a severe threat to e-commerce platforms, financial institutions, and consumers alike. Threat Hunter recently observed a surge in credit card fraud incidents targeting mainstream e-commerce platforms. These events exhibit not only diverse methodologies but also a clear trend towards organized and specialized criminal operations.

This report analyzes these recent incidents to expose the specific credit card fraud risks facing e-commerce platforms and offers actionable recommendations to enhance enterprise risk prevention capabilities.

02 Risk Analysis

The Multi-Layered Credit Card Fraud Ecosystem

Our analysis of recent e-commerce credit card fraud cases reveals a sophisticated, multi-level criminal ecosystem built by the underground industry (UI), spanning "card source – compromised account – target goods." This ecosystem demonstrates highly professional and industrialized operational characteristics.

2.1 Credit Card Source Exploitation

Credit Card Information Trafficking (CC Material): Underground industry UI syndicates illicitly acquire sensitive credit card information (including card number, expiration date, and CVV code – collectively known as CC material) through various illegal channels. This stolen data is then openly peddled on platforms like the dark web and Telegram.

Fraud Tutorial Dissemination: Once CC material is compromised, it's used to commit fraud on e-commerce platforms to purchase goods or services. Alarmingly, some UI entities even distribute "method tutorials" instructing buyers on how to bypass platform risk controls and increase their fraud success rates.

BIN Attacks and Virtual Card Generation: The UI leverages Bank Identification Numbers (BINs) to generate large volumes of virtual credit card numbers (VCCs). They then use automated tools, often called "Checker tools," to validate these VCCs. Upon finding a "live card," they perform low-value, high-frequency card-skimming attempts to evade standard risk control thresholds.

2.2 Compromised E-commerce Platform Accounts

Account Takeover (ATO) and Abuse: The underground industry (UI) frequently compromises legitimate e-commerce platform accounts during their fraud operations. These accounts are often obtained through credential stuffing, phishing, and other illicit means, with a particular focus on "old accounts" that have linked payment methods or a strong transaction history. These compromised accounts are then exploited for direct fraudulent purchases or resold to other fraudsters.

2.3 Targeted Goods for Monetization

Discount Order Placement & Gift Card Fraud: Some underground industry (UI) groups offer enticing discounts to lure users into providing their e-commerce platform account credentials. They then use stolen credit cards or illicitly obtained gift cards to place orders on the users' behalf. This not only causes direct financial losses but can also lead to the suspension of the legitimate user's account.

2.4 Underground Industry Modus Operandi

We've observed that these underground industry (UI) operations have coalesced into a professional and cross-border criminal network:

Multi-Platform and Cross-Border Operations: Monitored incidents involve e-commerce platforms across multiple countries and regions. UI syndicates exploit differences in platform risk controls and the complexities of cross-border transactions to commit crimes, significantly increasing the difficulty of tracking and disruption.

Specialized Tools and Services: The tools and services deployed by UI groups are becoming increasingly specialized. This includes scripts for "owned account" fraud, bulk account registration, and automated order placement. Additionally, sophisticated tools like "Dailers" (for phone-based fraud) and "SSN+DOB robots" (for validating credit card information with personally identifiable data) significantly enhance fraud efficiency and concealment.

03 Recent Captured Cases:

Actionable Intelligence

The following recently detected cases illustrate the sophisticated tactics employed by the Underground Industry (UI), combining various fraud methods to evade detection:

3.1 Platform-Specific Card Fraud & "Owned Account" Integration

Incident Summary：Threat Hunter intercepted a Telegram group advertisement where an Underground Industry (UI) actor offered credit cards specifically for a certain platform, priced at 35usd per card, with a "usage method" tutorial available for an additional 50usd. The UI actor explicitly advised that these cards required specific operational tactics to bypass risk control order cancellations. They recommended spending limits of 700-1100usd per transaction, cautioning against depleting the entire balance and suggesting at least 250usd be reserved. To extend account lifespan, they also advised against logging into the account again for three days after a successful order.

Intelligence Analysis：This case exemplifies the fusion of stolen credit card fraud with an "owned account" strategy. The UI is not just selling tools; they're providing sophisticated "playbooks" to evade risk detection. By controlling transaction behavior and login frequency, they actively attempt to confuse platform risk identification models.

3.2 Targeted BIN Attacks & Bundled Fraud Services

Incident Summary：We detected Underground Industry (UI) actors selling credit card BINs (the first few digits of a card that identify the issuing bank) on platforms like Facebook, specifically advertising them as usable for payments on a particular e-commerce platform in the US. These BINs were priced between 15 and 30usd. Concurrently, a "premium account + credit card" bundle was offered for 100usd. The UI actors claimed each BIN could facilitate 5-6 orders, with individual consumption limited to 30-40usd and each order not exceeding 20usd to avoid risk control triggers.

Intelligence Analysis：This case clearly demonstrates a BIN attack strategy, emphasizing small-value, high-frequency transactions to minimize interception by risk control systems. The bundling of "high-quality accounts + credit cards" further indicates the UI's efforts to integrate resources and provide more "convenient" end-to-end fraud solutions.

04 Impact & Strategic Recommendations

Credit card fraud on e-commerce platforms results in immediate financial losses for both platforms and merchants (e.g., lost goods, refund processing costs, chargeback penalties). Beyond direct monetary damage, it severely erodes platform reputation and user trust.

4.1 Impact on Enterprises

inancial Loss: Platforms absorb the cost of stolen goods and promotional subsidies. Furthermore, when banks initiate chargebacks due to fraud, platforms are often required to refund settled amounts, leading to double losses.

Brand Reputation Damage: Frequent card fraud incidents directly diminish consumer trust in the platform, negatively impacting brand perception.

User Trust Crisis: Card fraud can lead to the abuse or suspension of legitimate user accounts (e.g., Underground Industry (UI) logging into accounts and linking stolen cards, causing account blocks), resulting in significant user churn.

Regulatory & Compliance Risk: Failure to effectively prevent card fraud may lead to violations of financial regulations and data protection laws, resulting in substantial regulatory penalties.

4.2 Proactive Defense & Intelligence Services

To address these escalating risks and impacts, the Threat Hunter operations team provides comprehensive risk intelligence monitoring and credit card risk profiling services:

Card Fraud Risk Intelligence Monitoring: We actively monitor Underground Industry (UI) targets and their fraud tutorials. The Threat Hunter Intelligence Platform offers a full-spectrum capability, from intelligence source expansion (social media, private groups, forums, dark web) to in-depth analysis and early warning. Through real-time monitoring of card fraud risk indicators, coupled with deep analytical mining, we produce high-quality event analysis and trend judgments. This allows us to proactively identify the latest card fraud techniques, tools, and targets, providing crucial early risk warnings for enterprises.

Credit Card Payment Intelligence Solution: Threat Hunter's Credit Card Payment Intelligence solution accurately monitors and identifies information on risky credit cards. It provides robust credit card risk profiling data services, enabling clients to comprehensively enhance their capabilities in identifying, detecting, and responding to emerging card fraud threats.

Learning more about fraud risks relevant to your business? Let's talk.