Security News > 2021 > March > Fraud Ring Launders Money Via Fake Charity Donations

A money-laundering fraud ring is targeting donation sites, taking advantage of the outpouring of charity sparked by the global pandemic.

Dubbed Cart Crasher by the Sift security firm, the fraud ring leverages guest checkout options on donation sites to steal money and launder stolen payment cards.

"Using stolen credit cards, fake accounts, and automated scripts to do the dirty work, this fraud ring repeatedly funneled small amounts of money to themselves by setting up fake causes on various giving sites in order to request donations," according to Sift's annual report on evolving fraud tactics, released Wednesday.

"In 2020, the pandemic drove online giving up by 21 percent, providing cover to fraudsters who hide behind traffic and transaction surges, knowing that many merchants won't be equipped to handle scaling demand and rising fraud simultaneously," according to the report.

Based on data from more than 34,000 apps and websites, researchers found a 69 percent increase in average attempted fraud value since last year, across multiple verticals.

"Fraudsters are as knowledgeable about the mechanics of digital commerce as the legitimate merchants they target. They can accurately identify security vulnerabilities, and know how to use a merchant's success against them. As internet traffic surged last year by between 50 to 70 percent, the amount of money spent by online shoppers nearly doubled. Fraudsters seized on climbing transaction volumes and unanticipated consumer behaviors like stockpiling."

News URL

https://threatpost.com/fraud-lauders-money-charity-donations/165138/