What is carding?

Carding is a type of payment fraud in which cybercriminals use stolen credit or debit card information to make unauthorised transactions. These tests often involve small purchases that verify whether a card is active and usable. Once confirmed, the card may be used for larger fraud or sold on underground forums.

Carding is often linked to broader cybercrime tactics such as phishing, credential stuffing and malware attacks. For businesses, carding can lead to chargebacks, financial losses, regulatory scrutiny and reputational damage, particularly if sensitive customer data is also exposed during an attack.

How carding works

Card thieves, known as ‘carders’, acquire stolen card data through phishing, data breaches or purchase from dark web marketplaces. They then use bots or automated scripts to test these cards on websites that process payments. This “testing” is often distributed across multiple IP addresses or geographies to avoid detection.

When a card is verified as active, it can be used for purchases or resold in criminal networks. These attacks are fast-moving and difficult to trace, especially when businesses lack real-time fraud monitoring. Carders may also exploit weak verification systems, targeting e-commerce sites with poor fraud prevention measures in place.

Dark web sources for carding data

Most carders don’t steal data themselves. Instead, they buy it from cybercriminals who specialise in data harvesting. Sources include phishing scams, infostealer malware, compromised point-of-sale systems or breached databases. The dark web offers full card details (including name, number, expiration date and CVV – sometimes bundled with other personal information).

Additionally, some forums sell access to malware or tools for ongoing card harvesting. Carding forums are online communities – often found on the dark web, where cybercriminals buy, sell and trade stolen payment card data. These forums serve as illicit marketplaces for compromised cards, carding software, tutorials and fraud-as-a-service offerings. Some even offer customer support and escrow services for high-value transactions.

Discussions on carding forums often include how to bypass security systems, target specific companies or use “fresh” data from recent breaches. Monitoring these forums is critical for threat intelligence teams seeking early warning of card fraud campaigns and/or leaked corporate data. Businesses whose data is compromised often aren’t aware until fraudulent activity is detected or their data appears on underground marketplaces.

Impact of carding on businesses

Carding can have severe consequences for businesses, including increased chargeback rates, financial loss and long-term damage to customer trust.

Fraudulent transactions may result in penalties from payment processors or legal liability under consumer protection regulations. Reputational damage is another concern – especially for e-commerce brands, where trust is essential to customer retention. The cost of mitigating carding incidents, updating systems and addressing security gaps can be substantial. For many, prevention is not only about saving money but protecting their broader digital ecosystem.

Responsibility of businesses to prevent carding

Businesses – especially those handling online transactions – have both a legal and ethical responsibility to detect and prevent carding and other forms of payment fraud.

Regulatory frameworks, such as PCI DSS, require companies to implement safeguards to protect customer card data. Payment processors may also hold merchants accountable for high chargeback rates or negligence. Beyond compliance, proactive fraud prevention protects brand trust, customer relationships and financial stability. Businesses are expected to monitor for suspicious activity, secure payment infrastructure and respond swiftly to emerging threats. Failing to do so can result in significant penalties as well as reputational damage.

How organisations can detect and prevent carding

Early detection of carding activity is possible by identifying red flags such as repeated failed transactions, unusual geographies rapid-fire activity from the same IP and use of disposable emails or proxies.

Prevention tools include CAPTCHA, velocity checks, IP blacklisting and geofencing as well as device fingerprinting. AI-driven fraud platforms can also help detect bot activity and assess transaction risk in real time. Monitoring for compromised credentials or leaked customer data on the dark web is also essential. Combining these controls with timely threat intelligence allows businesses to respond to new tactics quickly and block fraudulent actors before significant damage occurs.

FAQs

What does carding mean?

Carding is the process of using stolen credit or debit card information to make unauthorised transactions, often to test if the card is active.

What is a carding attack?

A carding attack involves cybercriminals testing stolen card details on websites to identify which are still valid.

Is carding illegal?

Yes, carding is a criminal offense under most national laws and is punishable by fines, imprisonment or both.

What does a carding site do?

Carding sites facilitate the trade of stolen card data, tools and tutorials, often operating on the dark web.

How can businesses prevent carding?

Implement transaction velocity checks, CAPTCHAs, device fingerprinting and monitor for suspicious traffic patterns and failed payments.

Carding and Silobreaker

Carding schemes evolve rapidly, often tied to a range of cyber threats including global data breaches phishing, campaigns or newly developed malware strains. With fraud techniques becoming more sophisticated, businesses must sift through large volumes of data to detect activity that could lead to financial loss or reputational damage.

Silobreaker helps organisations stay ahead by continuously monitoring dark web forums, paste sites, marketplaces and breach databases for early indicators of card fraud. Its intelligence-driven platform enables early detection and prevention, helping organisations mitigate risks, protect sensitive data and intellectual property, and maintain brand trust and customer loyalty.

By surfacing context around emerging threats – such as tactics used by carding groups or trending tools – Silobreaker enables fraud teams to take proactive action. This intelligence-driven approach improves incident response, limits financial loss and protects brand integrity.