Quote:
Originally Posted by spinner1001
Credit card fraud has been around a long time. How it happened to you depends partly on your use of the card. Credit card skimming at gas pumps is very common. Less common is restaurants where a crooked food server takes your card for an ordinary meal payment but also swipes your credit card in another device that quickly collects your private card information. Online phishing is another way of collecting stolen credit card information.
What happens after that? Organized crime enterprises are likely involved (as in ransomware crimes). The brains of these organizations are often outside the US and they often have 'agents' inside and out of the US. Short story, many stolen credit card numbers end up on the Dark Web where they are sold. I have observed a Dark Web online store selling stolen credit card information and social security numbers. The online store looks similar to Amazon's website. It has search and filter features to find what you want. Want a gold AMEX card from Florida, you can filter on it. Pick what stolen numbers you want, put them in your cart, and check out. Just like Amazon. Pay in bitcoin or other cryptocurrency. Online stores even offer guarantees the stolen numbers you buy work or get free replacements.
Perhaps another criminal enterprise (maybe outside the US) often buys this kind of stolen information on the Dark Web. What do they do with it? Many of these organizations have their own 'agents' on the ground (called money mules). Their assignment is to take stolen credit card information from their boss and buy as much stuff as quickly as possible before detection and card cancellation. Then liquidate what the mule buys (e.g., sell the pot bought with the stolen card number). There is a split of money between the money mule and his boss.
The offshore online criminals are generally beyond the reach of US law enforcement. The lower level crooks on the ground tend to get caught but they don't even know their bosses. It's very lucrative and sophisticated. This kind of thing is growing because of more online activities and electronic payments. Banks are generally absorbing the losses as a part of doing business and US law enforcement can only make a small difference in it.
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I just had a thought do the criminals buy stolen credit cards with stolen credit cards?