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CREDIT CARD FRAUD

CREDIT CARD FRAUD. 400791 INTRODUCTION TO BUSINESS INFORMATION SYSTEMS. Annika Dahms, Faina Shikher, Stefani Dimitrova, Veronika Terzieva. HISTORY. Basic idea from late 1800s Early credit cards Charge - It Card (1946), John Biggins Diners‘ Club Card (1949)

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CREDIT CARD FRAUD

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  1. CREDIT CARD FRAUD 400791 INTRODUCTION TO BUSINESS INFORMATION SYSTEMS Annika Dahms, Faina Shikher, Stefani Dimitrova, Veronika Terzieva

  2. HISTORY • Basic ideafromlate 1800s • Early creditcards • Charge - It Card (1946), John Biggins • Diners‘ Club Card (1949) • First generalpurposecard in 1959 • American Express: firstplasticcard (1958)

  3. THE MAGNETIC STRIPE • Tracks • 1: 210 bit per inch (bpi) • 2: 75 bpi • 3: 210 bpi • Track 1,B: • Format code = „B“ • Primary account number • Country code • Name • Expiration date • Discretionary data • Longitudinal redundancy check (LRC) – form of computed check character

  4. YOUR “ OPPONENT” IS NOT PHYSICALLY PRESENT

  5. TYPES OF IDENTITY THEFT Criminal identity theft Child identity theft Financial identity theft Medical identity theft Identity cloning and concealment Synthetic identity theft

  6. ANYONECANBEAVICTIM

  7. THE VICIOUS CYCLE Malware coder writes malicious software to exploit a computer vulnerability. Hacker steals information from compromised bank server. TARGETED VICTIM Hacker logs into victim’s online bank account.

  8. Money transferred to mule. Money transferred from mule to organisers.

  9. VULNERABLE INFORMATION • Social Security Number (SSN) • Date of birth (DOB) • Personal identification numbers (PINs) • Passwords • Security questions • Mother’s maiden name • Driver’s license number

  10. CONSEQUENCES DENIAL OF CREDIT DENIAL OF MEDICAL CARE DENIAL OF PUBIC BENEFITS X X LOSS/DENIAL OF EMPLOYMENT ARREST X X X

  11. SKIMMING Theft of a credit card information, used in a legitimate transaction Photocopying receipts Skimmer ATM skimming

  12. CARDING • Verifying the validity of stolen card data • Making small purchases • “Generators” producing series of card numbers

  13. BIN ATTACK • Generating valid card numbers by changing last four digits

  14. 3 STEPS : BIN, PHISH AND HIT • -Generating numbers out of already known ones • -Verifying validity • - Make the hit

  15. TELE PHISHING • Often luring victims that they are speaking with a trusted organization • Scammers can be aggressive, convincing and tireless

  16. IT IS ABOUT YOUR SAFETY!

  17. WHAT DO I DO?

  18. AROUND 12 MILLION VICTIMS PER YEAR MORE THAN THE ENTIRE POPULATION OF OHIO 1+ MILLION VICTIMS PER MONTH 4 VICTIMS PER SECOND

  19. FAMOUSCASES YEAR: 2007 FRAUD: TJX credit card scam DAMAGE: $1 billion & 1 million victims PERPS: Only 1 of 11 suspects has plead guilty SENTENCE: NO PROOF = NO SENTENCE PUBLIC IDENTITY: Albert Gonzalez, Miami Florida

  20. FAMOUSCASES YEAR: 2009 FRAUD: THE 7-11 HEIST DAMAGE: $130 million & 140 million victims PERPS: Albert Gonzlez and two Russians SENTENCE: 20 years in prison INTERNET IDENTITY: "Segvec," "Soupnazi" and "J4guar"

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