CREDIT CARD FRAUDS

1. CREDIT CARD FRAUDS RASTISLAV TUREK

2. Who am i • Blogger (blog.synopsi.com) • Slovak • Independent security consultant (synopsi.com) • Twitterholic (almost 6 500 tweets in year and half) • Technologist

3. Before we start … little survey • Do you know the differences between credit and debit card? • Do you have one or two debit or credit cards? • Do you have more than two cards? • Do you know what credit card number means? • Did somebody steal money from you card?

4. History of Credit Cards • First credit card (1920” in US) • Diners Club (1950) First modern credit card company • American Express (1958) • BankAmericard (1958) later Visa • Everything Card (1967) later Master Charge (1969) later Master Card (1979)

5. Card security improvements • Personal • Signing from 1920 • Magnetic stripe from 1966 • Pin from 1967 • Chip and Pin from 2003 • Internet • CVV/CVV2/CSC/CVVC/CCV • MasterCard from 1997 • Visa from 2001 • 3D Secure from 2004 • Verified By Visa • MasterCardSecureCode • J/Secure • Global • PCI SecurityStandardsCouncil (2006) • Payment Application Data Security Standard

6. Card types • Debit Card [your money] Funds are withdrawn directly from customer's bank account • Credit Card [bank money] Funds are withdrawn directly from bank's account loaned to the customer Widely used: • Classic Limit: $100 - $2 000 • Gold Limit: $500 – $15 000 • Business Limit: $500 – $25 000 • Platinum Limit: $1000 - $100 000 • Amex Black (Centurion) Limit: “Unlimited” • (Airline, Charge, …) Limit: Depends on company

7. Card number • All magnetic stripe identification cards are generated in ISO/IEC 7812 • Almost every issued card number can be validated with Luhn “mod 10” algorithm • You can check your card via IS (BIN) on http://bins.bankinfo.sk

8. Issuer Identification Number • Previously “Bank Identification Number” (BIN) • This number is used to identify: • Country of issuer (Slovakia, UK, USA, …) • Issued bank (HSBC, Citibank, Commerce AG, …) • Exact card type (Credit Gold, Debit Business, …) • Issuer phone number for card blocking * Card Number Length

9. Card security elements • PIN • 4 digit value, sometimes can be chosen/changed by user • generated by encrypting PAN (Primary Account Number) with PGK (PIN Generation KEY) with 3DES and at the end decimalised. Sometimes can be added offset to original PIN • CVV/CVV2/CVC/CVC2 • Mostly 3 digit value, only AMEX has 4 digit, printed on the back side of card, AMEX on the front • generated by encrypting PAN, service code and expiration date with CVK (Card Verification Key) and at the end decimalised.

10. Card security elements • Magnetic Stripe • Track 1B4888603170607238^Head/Potato^050510100000000001203191805191000000 • Track 24888603170607238=05051011203191805191 • Track 2 plus/se (Track 3)014888603170607238==0401000000000000003000000000000007020===0= Track 2 can be generated manually from track 1 and vice versa. Also Track 3 can be generated from Track 1, but not vice versa.

11. Card security elements • Chip • More secure than Magnetic stripe • Same CHIP as in GSM SIM cards (not encryption) • Encrypted data by 3DES or RSA • Key set is usually loaded (DES) or generated (RSA) • After decryption, there are similar tracks as in Magnetic stripe • Chip (Track 2)4974101234567890=0810221xxxxxx40600004970891234567890=0909221xxxxxx3000000 • Magnetic (Track 2)4974101234567890=0810221xxxxxx02100004970891234567890=0909221xxxxxx3370000

12. Card security elements • 3-D Secure • XML based protocol • Always using SSL connection • You are buying something from a merchant • He will redirects you to payment processor page (encrypted) • You’ll enter card information (encrypted) • Payment processor checks if you card is valid for VBV/MSC/JSC • If it’s ok, it redirects you to card issuer website (your bank). Many banks are outsourcing this step, then you can be redirected to different website (encrypted) • You’re prompted to fill up form (if you’re there for first time), or fill up password (SMS code, etc.) (encrypted) • If verification passed, you are redirected back to payment processor website which will check your supplied card data (encrypted) • And at the last step you are redirected back to merchant website

13. Card transactions • ATM, POS and Internet payments works very similar, there are just little differences. • You give card to a merchant • He puts it in to POS terminal • POS terminal send important information to payment processor (encrypted) • Payment processor checks who is a issuer and ask him if your card is ok, if you have enough money for this transaction (encrypted) • Bank will send response (only YES, NO) to payment processor (encrypted) • Payment processor sends response to your merchant (encrypted) • If response is positive, you’ll get your stuff

14. Frauds • There are many ways how to steal from people • But there are just few ways how to cash money from stolen cards • There is bran new business just for this • In this part you will see business models of thieves • You will see real life examples, from real businesses used by these people

15. Stealing • Your card can be stolen using many ways : • hacked website (eshop, …) • hacked payment processor • hacked bank • hacked mall • skimming • phishing / vhishing • stolen card • malware / keylogger • generated card http://www.ic3.gov/media/annualreports.aspx

16. Business models • Universal business model to get cash from stolen credit cards • Sometimes one person is able to serve several positions

17. Position: Hacker • His job is get credit card with all accessible information • Middle dangerous position • As a “freelancer” will get only approximately $1 for each working card • In a group he gets smallest cut • How he gets credit cards? • SQLi on websites (mostly eShops) • Hacking payment processors (millions cards) • Eavesdropping traffic in mall • all cards are checked before selling

18. Hacker’s Pricelist • Talking about “freelancer” • Prices mostly depends on amount of information • He can get much more, if he can provide information like balance of credit on the card, SSN, DOB, MMN, etc. • all cards are checked before selling

19. Position: Skimmer • His job is get cards information from Magnetic Stripe / Chip / RFID • Very dangerous position • As a “freelancer” will get approximately $25 for each working card

20. Skimmer’s Pricelist • Talking about “freelancer” • Price depends on type of card, issued country and bank • He can get much more, if he can provide information about balance • Price also depends on source of card (Hotels have high value, restaurants have low value, …) • all cards are checked before selling

21. Skimmer in work

22. Position: Phisher/Vhisher • His job is to get information about cards by using social engineering • Low dangerous position • Success only in 0.001% from all sent emails (depends on quality of email and site) • He mostly get all information about card and his owner (on black market known as Fullz, high valuable cards) • In 65% he also get access to owners email and in 47% is the target site PayPal • Vhishing is form of phishing but over the phone (much more successful)

23. Phiser’s Pricelist • Talking about “freelancer” • High valuable cards • They’re mostly selling with cards PayPal, MoneyBookers, eBay, RapidShare, … accounts. • Declined Fullz can be used for shopping with “Bill Me Later, PayPal Later, …” • all cards are checked before selling • Talking about Fullz (SSN, DOB, MMN, PIN, …)

24. Phiser’s Success

25. Phiser’s Success

26. Black Market • Black Markets allows verified people to exchange any valuable stuff, like credit cards, fullz, emails, phishing templates, … • They can be found on many places • IRC [any-network #ccworld] • Web (mostly forum) [mazafaka.cc, cardingzone.org,…] • SILC (most exclusive) [access only for invited people] • Mail discussions [access only for invited people] • To get access to private black markets you need to be invited from 5 or more people and pay from $1 000 to $10 000

27. (ordinary) Black Market prices

28. Black Market: How to pay • Most popular was eGold until 2007 when the US government ordered e-gold administration to lock/block approximately 58 e-gold accounts, in 2008 was three directors plead guilty • Now exist two very popular services with pretty good identification guarantee: • WebMoney (Russian multifunctional payment service) • Liberty Reserve (Very similar as eGold, but HQ is in Costa Rica) • Exchange service can be used to cover much more identity, which will transfer money from one service to another in few seconds for big fees (5% - 25%, depends on services). • There exists more than 500 Exchange services, and 95% are from China, Russia, Costa Rica, Belize, Seychelles, etc. • Many rippers (frauders) on ordinary black markets

29. Black Market Examples Forum

30. Black Market Examples IRC

31. Position: Buyer / Cashier • His job is use cards for buying stuff to safe drop • Low dangerous position • Must have very good skills, know security of payment gateways and eShops • Many times he need to confirm orders by additional information about card owner, like background, SSN, MMN, DOB • Sometimes he need to confirm orders by phone conversation • Buyers have mostly very good access to all information from 3rd party services • They have access to high valuable proxys, which can be chosen by country and city and are also high anonymous (not sending any proxy identificators) • If are they independent, they are asking for 10% - 25% from goods price • If they’re working in group, they get 30% - 60% from sold prices

32. Position: Drop • His job is pick-up money or ordered goods • Very dangerous position • Safe drops for money are used for wire transfers, or WesterUnion orders • Many times is drop for WesterUnion WU Agent in country like Thailand, Indonesia, India, etc. • Good drops often use homeless or asocial people for picking goods from UPS, Fedex, or Post • Independent drops takes 20% - 50% from goods or money • In group they takes 20% - 40% from goods selling price or money • They’re also cashing skimmed cards • Mostly in countries like Thailand or Italy, because of countries block (Many US, AU, CA, … cards are blocked for countries like Germany, Slovakia, Russia, etc. Card owner can withdraw money from card in a bank with assistance of bankers)

33. How to … Real life examples

34. How to get cards • Most ordinary way is to hack eShop • Most popular technique is SQLi

35. How to check card validity • Most ordinary way is to use “Donate us” form on any foundation website to make payment on small amount ($0.1 - $15) • Much more sophisticated is to use three step payment processors, which can tell in first step, if a card is valid, in second will check AVS (adress verification system), if address and zip are same as in card and in third will try to make payment • An hacker can stop this in first or second step and not make payment on card • Bigger chance not loose this card

36. How to get SSN, DOB, … • In US, UK, DE, etc. law enforcements, firemen, doctors in hospitals, employments in social security and lawyers, have access to this information • There are always people, who wants make more money

37. How to get balance information • Balance information is highly valuable, because cashier will not attract attention to himself • This is mostly most expensive service provided by 3rd party groups • There are two very nice and simply ways how to get it in USA • Call to free number in biggest bank in US +18004321000(Bank of America) a robot voice will request credit card number and for verification SSN • Good payment processor, which can check card validity with paying amount in first single request. Then an hacker need to send few request to know approximately amount • Example of such a request: • Paying amount: $4500 • Paying amount: $1500 • Paying amount: $3500 • Paying amount: $3000 • Paying amount: $3200

38. How to bypass 3-D secure • This depends on implementation, but 90% of 3-D secure websites are outsourced by big payment processors (FirstData [achex], etc.) • https://www.achex.com/RequestDispatcher/Issuer3DSecureResponse;AchexSession=DCXzGW9GQT7ZTgrFpnTCy75ZvXm0QJgyBRHjz1L8WNTBL1jCVYvz!1061590781 • This bug was really simple. They have forgotten to add expiration/destroy to response session, then every card can be verified by 3D-Secure with this old URL • In a real world, you not need much to validate yourself as owner of card in 3-D secure, because every password can be changed online by adding few information about card, mostly SSN, DOB, ZIP, CVV2, EXP date. • If the owner of a credit card didn’t use fill up information on 3-D secure register form, you can always push “No Thanks” and pay without 3-D secure • Anyone can check, if a card is in Verified by Visa, or MasterCard Secure Code program just by visiting this sites and put there card number https://verified.visa.com/aam/data/vdc/landing.aam?partner=vdc&resize= https://enrollment.securecode.com/vpas/cuets-en.html

39. How to get proxy for exact city • Every buyer/carder needs good proxy for exact city in exact country/state as is his stolen credit card. Many eShops and payment processors are using GeoIP localization • Anyone can buy proxies from specialized russian service, which is using botnet to provide socks 5 proxies. They can be ordered by country, state, city and speed • They’re offering approximately 250 000 working proxies from almost every country in the World

40. How to get cash from cards • There exist few ways how to get money from credit cards • Use virtual POS terminal • Virtual POS terminal will transfer money to bank account in next day. This technique require real working shop, which accept orders daily, and cash only few stolen cards per day to not attract attention. • Affiliate • Very popular technique is to open an affiliate account, mostly on porn sites and order customer accounts through this affiliate accounts with stolen cards. This will cost every card $25 - $50 for a month and affiliate will get $10 - $50 for each customer.

41. How to get cash from cards • Western Union • WU is pretty complicated, because needs a lot assets to make successfully order. • WU allows people from few countries (US, CA, AU, NZ, …) to make online order with their Visa or MasterCard. • They’re using 3-D secure and every order must be confirmed online via phone. • Phone number must be same as in credit card file in the issuer database and they’re asking for background information (if it’s available). • Cashier need to have access to good VoIP service to change displayed number, good information about card owner (including background) and also there must be very good drop, to receive this money. • Many times is drop original Western Union Agent in countries like Thailand, India, China, etc. • Good cashier can make daily $15 000 - $150 000

42. Malware in ATM

43. …and if you are asking yourself: Why would somebody risk long jailtime? here is the answer

45. Thank you Rastislav Turek turek@synopsi.com +1 (615) SYN-OPSI