Synthetic Fraud is the New Way of Buying Stolen Goods

Synthetic Fraud is the New Way of Buying Stolen Goods

June 13, 2019

As e-commerce merchants continue to combat fraud, cybercriminals are growing savvier, using the Dark Web to offer tutorials on synthetic fraud.

“Synthetic identity (ID) fraud is one of the newest, fastest-growing and most sophisticated types of criminal financial activity,” according to Featurespace, a UK-based artificial intelligence firm. Essentially, synthetic fraud is the art of piecing together bits of personal information from multiple sources to create an entirely new, yet non-existent identity. 

Without credit cards, though, a fraudster is incapable of “carding,” which is using stolen credit cards to make online purchases. Increasingly, cybercriminals are offering carding tutorials on Dark Web marketplaces, where fraudsters can purchase live high balance credit cards and learn, “Amazon Carding Trick of 2018 Latest Full Working Method.”

Dave Excell, founder and CEO at Featurespace explained that while the Dark Web was originally used by cybercriminals to share information and organize how they could work together, “It continues to serve this purpose, but it's also become a way for cybercriminals to further monetize their experience and 'professional knowledge', and also their exploits in selling data and software.”

Establishing these “class-like” forums shows the demand from “newbies” who want to learn how to commit fraud, Excell said. “Cybercriminals have seen a rise in the demand for their time in online forums from novice cybercriminals wanting to learn more. Ever-opportunistic fraudsters are capitalizing on the opportunity to make money through these classes.”

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