Cybercrime and fraud is an always growing segment of Ecommerce and retail. Wherever card data is being used and stored, cybercriminals and fraudsters are sure to be lurking, trying to find a way in.
One of the more popular fraud related scams are the purchase of “cardable” items and having them shipped abroad. To those not familiar with the term, a cardable item is one that can be purchased with a certain credit card and billing address, yet have it shipped to another address.
Cardable items consist primarily of high ticket items such as consumer electronics, computers, and related accessories. Once purchased the items are sent abroad, mainly to countries with high electronic related taxes, and are sold for more than when purchased, but priced lower than the local prices, that is where the flip comes in.
Shipping companies, such as UPS and FedEx, have begun to take more action and stop the distribution of goods bought with stolen card data. Retailers have also begun to prevent shipments to certain regions like Russia and the Ukraine, where a lot of fraud and cybercrime is generated.
New policies and awareness from both retailers and shipping firms have brought on a new concept for cybercriminals using the popular cardable technic, “White Label” shipping companies. These companies are shell operations for shipping goods through the US Parcel Service (USPS).
FXTM Recruits Financial Broadcaster Han Tan to its Market Research TeamGo to article >>
These “Shipping Companies” recruit US based “Employees” through Work-from-Home campaigns. The orders are sent to the employee’s house where they are sent again through USPS to other countries. A great example is LabelCity, a white label service which advertises “corporate rates” for shipping International Priority Mail through USPS.
“Our service provides 100% guarantee on delivery of the goods. Return of funds to 30 days.We started doing white labels (i.e., cash disbursed-for)! Our labels are made automatically through the admin panel, and automatic replenishment! Our corporate rates will surprise you, minus 15-20% of the price of USPS!” the proprietor of LabelCity promises in an advertisement.
Once shipped to the cybercriminal’s foreign location of choice, they are sold at a mark up, generating the fraudulent profit.
In the world of online payments and Ecommerce, fraudsters and cybercriminals are the main enemy. Knowing how they work and their methods of operation helps you become more aware and eventually prevent more fraudulent activity from your online outlet.