Sift reveals new fraud ring, emerging payment fraud trends

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.