The interesting thing with credit card fraud is that in most countries the financial regulations say that the card holder’s liability is very limited. In the United States for example, the card holder is being held liable for amounts up to $50 regardless of the charged amounts. And most issuers won’t even charge that if the card holder can prove that their card was misused.
The parties that suffer the loss are either
a) the merchant you buy from
b) the bank / institution issuing the card
a) The merchant is only liable if he can be accounted fault for not checking the validity of the order enough. If the merchant does everything according to the card issuer’s standards and retrieves all necessary information from the person using the card, he cannot be held accountable. A good merchant, who does everything correctly, does not suffer any loss from CC fraud. The people screwed then are:
b) The banks. When making a credit card transaction, the bank credits the merchant with the amount of the transaction. It usually gets that money back from the card holders banking account (plus massive interest of course). If however the card holder cannot be held accountable as we have established and the merchant does not have to pay back the money, the bank suffers the loss.
I leave it everybody to form their own opinion about whether it is morally wrong to steal from banks, however, for me that is not an issue. Banks are robbing the people PER DEFINITION , so me getting back at them is not a moral issue for me. But as I said: I leave judgments about that to you.
Now that the cards are ready and moral issues are out of the way for me, what’s next? Using them! There are a few important things a “carder” (someone who uses other people’s credit cards) needs to pay attention to. I will not go into the details here, (this is not a tutorial,) the information is available online and pretty easy to find if you know where to look.
Basically you have the following options with CCs (keep in mind that this is a simplified version, there are a few things that make it tricky):
- Purchase physical goods. Buying yourself a nice new laptop for $1000, a fancy coat for €600 or a luxurious watch for £2000. The internet makes it possible to buy all kinds of things from all over the world with your (or not your) credit card. The little problem here might be receiving the stuff without leaving a trace.
- Purchase digital goods. This has the advantage of not being traceable by your order address. Almost any digital good can be bought with credit card. Things like access to porn sites or software downloads.
- Cashing CCs. The best thing for a carder is to cash out the CC, meaning that the carder uses the CC to send himself plain money. There are only a handful of methods that really work safely and tutorials on this are very pricy online. The most popular thing at the moment are the methods that allow you to transfer money in the form of Bitcoins to you Bitcoin address, which has the advantage of being completely untraceable when you pay attention to very few simple rules.
I personally went with the 3rd method, specifically: purchasing Bitcoins. Turns out that it takes a lot more effort than I personally assumed. The method I chose allowed me to only cash out $40 in Bitoins per card and day and max. $120 per 30 days each. Since fraud will usually be noticed within a few days, $120 is the absolute maximum you can get out of a card with the method I chose. It’s not a bad deal to turn €20 to $240 (roughly €180), however, since it requires some initial investment to even start, can be quite time consuming and is a crime that could cost you quite a few years of your life if you get caught (which is very likely if you do the slightest thing wrong or if the software you use has exploits), it is not a form of criminality of business that everybody would want to pursue.
I was interested in HOW to do it, learning about how credit card fraud, a multi-BILLION dollar a year crime form, works. I have made some money and had a sweet little feeling of being a Robin Hood (well, I didn’t give to the poor, but at least I stole from the rich).
Stay tuned for my soon-to-come article on Bitcoins and their relation to “regular” money. You might just learn a few things you didn’t expect.