The latest example in cyberspace is the “BIN attacks,” that targeted small businesses. The tactic involved manipulation of the Bank Identification Number (BIN) of credit cards that allowed threat actors to put the stolen card details through trial and error on unsuspecting e-commerce websites.
In 2023 alone, the payment card fraud amounted to a whopping $577 million, which was 16.5% more than in 2022. Among its victims, the Commonwealth Bank was the one that experienced the fraud when a Melbourne wholesaler faced a barrage of 13,500 declined e-commerce transactions in a month.
The incident, previously noted as a clerical error, turned out to be an event of cybercrime that impacted both businesses and consumers.
The cybercriminals initially obtained the first six digits of a credit card, called the Bank Identification Number (BIN). This information was then used for trial and error to determine what combinations of card numbers, expiration dates, and security codes work. Subsequently, the card data that were taken are verified through inconspicuous transactions to ascertain their authenticity. Once verified, card numbers that have been compromised are either sold by fraudsters or used in larger-scale fraudulent transactions.
Commonwealth Bank account holders, Bob Barrow and John Goodall, discovered that they were the targets of fraudulent activities. Despite having no online activity with their cards, they were astonished when they found out about the transactions made on their accounts. This made them question the security of their financial information.
Credit card numbers are more random and limitless than one might believe. Out of the sixteen digits on a card, the six-digit BIN leaves just ten that follow a pattern. Because there are comparatively fewer options, cybercriminals can leverage automated methods to quickly guess valid combinations, which presents a serious threat to conventional security measures.
While the affected entities are expected to come up with more stringent safety measures, the responsibility does not solely lay on the banks. Financial institutions do not always conduct the transactions; they are often the victims themselves who issue the cards. The attacks emphasize the necessity of a multi-layered safeguard, with companies utilizing strong fraud prevention systems and online shop security-focused payment processors like Stripe and Square. This is necessary since a BIN attack's aftermath might cause firms to go bankrupt.
Reserve Bank of India has forewarned Indians against unauthorized money lending apps that are increasingly rising day by day, consequently subjecting customers to fraudulent deeds. The threat actors lure the patrons with instant loans, capitalizing on their needs, and then trouble victims for the dues.
The Central Bank of Russia informed banks that fraudsters use the voice menu to get information about the status of customers' accounts, using only the last four digits of the card.
It all started with the fact that one of the credit organizations reported a sharp increase in the number of calls to customers from fraudsters, and the attackers knew the exact amount on the accounts.
It turned out that the scammers made phone calls to the IVR system (Interactive Voice Response), replacing customer numbers. When calling from a client's number, they requested information about the remaining funds by entering the last four digits of the Bank card.
After that, the scammers called potential victims and introduced themselves as Bank employees. As proof of authenticity, they provided customers with information about their account balances. After that, they successfully used social engineering methods to steal money.
The phone numbers of customers and their Bank cards were compromised and spread on the Internet. The Central Bank believes that fraudsters could get them from the Joom client base, which was in the public domain. Then, representatives of the online store and banks assured that there is no danger for customers, since the data that fell into the hands of fraudsters is not enough to debit money from their accounts.
It turns out that the last four digits of the card may be enough to get confidential information from Bank customers. But this information is not officially classified as secret and is printed on any check.
According to Sergey Golovanov, a leading expert at Kaspersky Lab, the use of biometrics can simplify the identification process for the user and make this process more secure. At the same time, the expert believes that the use of biometrics would increase its cost for the Bank. Thus, despite the recommendations of the Central Bank, banks will continue to minimize their costs in this area, risking making their customers victims of fraud.