Preventing Carding Attacks Through Effective Bot Management

Credit card fraud is an ongoing challenge for companies across industries, particularly in today’s digital landscape where automated bot attacks are becoming increasingly prevalent. Cequence recently assisted a prominent customer in mitigating a sophisticated attack that involved testing stolen credit cards. Attackers used bots to perform small transactions to validate stolen credit cards, aiming to identify cards that were active so that they could be used for larger fraudulent purchases. By acting quickly and decisively, Cequence successfully detected and blocked the attack, preventing significant financial losses and protecting the client’s sensitive customer data.

Carding Attacks: Understanding the Threat

The client targeted by this particular attack had a payment platform that attracted attackers seeking to validate stolen credit card details through small test purchases. The high volume of transactions made it difficult to distinguish between legitimate and fraudulent activities, creating a challenging scenario for the security team.

The Scope of the Attack

The attackers used bots to quickly rotate through stolen credit card numbers. By performing a high volume of small transactions on the client’s platform, the attackers aimed to validate which credit cards were still active. This type of attack has several significant impacts:

• Financial Losses: Even though the transactions were small, they quickly incurred substantial costs since each transaction attempt costs money, successful or not. Each successful transaction also indicated that the card was active and could be used for larger purchases.
• Reputational Damage: The presence of unauthorized charges can harm a company’s reputation. Customers who notice fraudulent charges on their statements may lose trust in the business, leading to negative public perception and potential customer churn.
• Operational Challenges: Handling a large number of disputed transactions can strain customer support teams and lead to increased operational costs.

This particular attack focused on credit cards, but similar attacks are common across gift cards and loyalty or rewards cards.

How Cequence Detected the Threat

Cequence Spartan performs advanced behavioral analysis on API traffic, identifying anomalies and patterns that indicate malicious behavior. In this case, it identified the high volume of small transactions combined with the frequent changes in credit card numbers as indicators of a carding attack. The bots used by the attackers rotated through various credit card numbers, attempting small transactions repeatedly. Spartan detected the automation by recognizing the repeated transaction patterns and inconsistencies in request behavior compared to legitimate users.

Tracking the Attacks with Session Identifiers Bearer Tokens

Cequence tracked session identifiers and bearer tokens to trace the activity of the bots and better understand how the attack was being executed. Session identifiers are unique strings generated by the server during user login, which are used to keep track of user activities. Bearer tokens, used for authentication, provided another layer of insight. Cequence monitored the use of these tokens and detected replay activities—instances where the same token was reused across multiple transactions. This was a clear indicator that the requests were automated and not coming from legitimate users.

Manual Intervention for Enhanced Analysis

While automated detection and response systems are effective, manual intervention remains crucial for analyzing complex attacks. Cequence’s team of experts conducted a thorough investigation into the carding activity, identifying specific attack patterns and behaviors that could be used to improve the effectiveness of the automated defenses. Based on the findings, Cequence adjusted the security policies on the client’s platform, fine-tuning the automated defenses to ensure they were targeting the correct behaviors while avoiding disruption to legitimate users.

How Cequence Security Can Help

Advanced Threat Detection and Mitigation

Cequence Spartan (bot management) and Sentinel (API security posture management) are advanced tools for detecting and mitigating sophisticated threats like carding attacks. Using behavioral analysis and real-time monitoring, these tools identify subtle attack patterns that might otherwise be missed by traditional security systems.

Automated and Manual Defenses

Cequence employs automated defenses combined with manual support as needed, ensuring that every aspect of an attack is thoroughly analyzed and addressed. Automated tools detect and block threats in real time, while human experts conduct further in-depth analyses to better understand complex attacks and fine-tune defenses accordingly.

Tailored Security Solutions

Every client is unique, and Cequence offers tailored solutions to meet specific needs. Collaborating closely with clients, Cequence develops custom strategies that address individual vulnerabilities while ensuring minimal disruption to normal operations. Following an attempted attack, Cequence works with clients to implement any needed additional preventative measures.

Getting Started with a Free API Security Assessment

Credit card fraud and automated attacks can have severe financial and reputational consequences. Protect your APIs and secure your customers’ data by getting a free API security assessment from Cequence.