Sift reveals new fraud ring, emerging payment fraud trends

Thursday 1 April 2021 12:02 CET | News

Sift has released its Q1 2020 Digital Trust & Safety Index report, which unveils that the average value of fraudulent purchase attempts increased 69% in 2020. 

The company also saw several business categories hit by increases in attempted fraud rates, as well as in the value of those fraudulent purchases, with lodging merchants, omnichannel retailers, digital wallets, and professional marketplace companies becoming targets for online theft amid the COVID-19 pandemic. 

Sift’s Data Science team uncovered a sophisticated fraud ring, dubbed Cart Crasher by Sift, that leveraged guest checkout options on donation sites to attempt to launder stolen payment information. Cart Crasher’s scheme was shut down across Sift’s global network, and it operated as follows:

  • Fraudsters set up recipient accounts on donation sites;

  • Fraudsters create and post fake causes with which to receive donations;

  • Fraudsters use stolen credit cards and fake usernames/emails in guest checkout by the thousands (via automated scripts) to donate funds to their own fabricated causes; 

  • ‘Donations’ are made in increments of approximately USD 5, allowing Cart Crasher to test stolen payment accounts to determine if they’re valid for use elsewhere — and paying themselves in the process.

Other findings in the report include: 

  • The most expensive item fraudsters attempted to purchase on Sift’s network was a USD 5 million watch;

  • 62% of attempted payment fraud attacks came from mobile devices in 2020 — up from 51% in 2019;

  • In 2020, an 8.4% overall attempted fraud rate was seen in transportation, while crypto exchanges and gaming/gambling followed with fraud rates at 4.6% and 3.7% respectively.

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Keywords: Sift, report, fraud detection, e-wallet
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime