03/1/13

Currency of the Cyber Economy

gAtO tHiNk- the bad evil hackers are the least of your worries, the real bad guys are the corporate geeks that want every click, every nuance of your digital life and they tell you it’s to give you a better web experience. WoW I didn’t know that selling all my information as I go from site to site is a good thing for me. How about if I’m sick and search for my medical problems will my insurance company want that information to raise my payments. You betcha they do!!!

I’m doing some Tor work now so I’m away from the hump and grind but I been changing my search engines because like google they know what I look for and they give me the same crap and then I switch to yahoo and soon the have me profiled then Bing, whoa!!! what a mistake but I expected very little from them anyway. They were robbing us blind back before Netscape days.

Think about those high tech security geeks they get paid big bucks to guard the hen house and you hear about a new hack every other day why because if you understand the “book” the same one every security geek get’s all those certification all teach the same old done thing and that’s their job to take the masses and control them but the ones that think for themselves are the true pioneers, the ones that dance to a different drum. Look I don’t have any certifications anymore and I know more today about the Tor network than most people around. That’s what interest me and that’s what I like.

The currency of information economy is going swell and the big corporate boys are all for selling everything you do so use Tor and be safe and have a little privacy. Be different and use the tools that work for you and keep your digital breadcrumbs to yourself. I know your not doing anything wrong and you don’t have to prove it to anybody. People say if I use Tor then people will think that I’m a bad guy. Oh Me, Oh My do you really care about other’s control of you. It’s a propaganda war just to keep you afraid of Tor because with it they cannot sell your data. Don’t sell your click for free make them earn them -gATO OuT

02/18/13

Cyber Women and Hollywood

Cyber Women please stand Up

CSI creator launch a new Cybergeddon Yahoo Show GREAT -http://cybergeddon.yahoo.com

Pierluigi and gAtO met with Dare To Pass – CSI – Anthony e. Zuiker, Matthew Weinberg and Josh Cadwell to talk about the new Cyber sensation Cybergeddon in Yahoo. I never met any hollywood types but these guy’s were just dead set on making the show great, and real life. They met with Symantec/Norton folks but they were not prepared for Pierluigi’s charm and solid knowledge of what is in the deep dark web and a loco gAtO that has no rules or reason sometimes.

Let’s just say we where informative and entertaining and after the meeting Josh Cadwell CSI’s real geek -(producer, writer, director too) took the lead. I think this relationship will make the show more real, more believable and as they use real tools and how 2- of the black hackers they will be in a position to not just make a great entertainment show but also it may help other online people to become aware of the dangers of cyberspace. CSI broke new bounds and educated people to the cool science and how technology can be use for good things and help solve crimes. Cybergeddon is set to become another CSI but in cyber Space- About cyber Space— IMHO

gAtO does not even own a TV so I had no clue who CSI was- but these guy’s are really very smart, creative and played hardball when it comes to what they want. Anthony is solid TV Producer type, Matt is a cool genius and Josh has so much knowledge about Tor this that it made us feel comfortable, he is a techno class dude…he knows his technology.

This show is so different not just the content but by putting it on Yahoo they have over 50 million points as a distribution model. This is how smart movie executives are not fighting the Internet but they are embracing it and fixing it to make the model work. We all seen Kim DotCom and other pirate distribute content worldwide – movie guys saw this and said WOW we could keep the distribution cost down and get more views and that’s a big win, win for US the viewers and them the creators.

“I wanna be a Hackers” has become a new cool thing. The geek is becoming a superstar – where the football hero and the nerdy computer club president has similar status. This is new a turn for intelligence not just brute force – I’m one geek that got the beauty queen and so will others. Cybergeddon show’s that even the 4 eye nerd can become a person of power and respect – take the character “Rabbit” yeah I can say I know some hacker like him -

Give them a break guy::: I know you can’t hack everything in 15 keystrokes but they have a limited time – Viewer can have the concentration of a nat, so I will give them that and it has to be entertaining and Chloe the lady Hacker is so cool – I have a daughter that is a strong woman and can hack (a little ) but the role model this set’s up for women in technology is great -

I know of 3 cyber women (they are gonna kill me) C3nTuri0n ?@Centauri3  and ?? ?@7JGoldOrlando and Kandy- these are real live cyber queens that know their shit and are very intelligent, strong and vocal – they take no shit from anyone in cyberspace and sorry but that is cool. They dabble with SE, Bot-Nets and they know cyber security – I feel fortunate to know great ladies like this they teach me so much.. Thanks guy’s…

Cyber Women please stand Up

So my Gray hat goes out the CSI team in wanting to show such a good woman role model, this is a change and I seen it with Latino women shouting about TangoDown all over Latino countries – Women in cyberspace are gaining a lead – we men can sometimes communicate with grunts and get the message across (nOt)- I know this show can be great for equality in cyberspace.

I want to thank Lauren -Dare to Pass – Nicole – National Science Foundation for helping Pierluigi and gATO to have a chance to help in this project. el gAtO lOcO had fun talking about “The Deep Dark Web” (our Book) (available in Amazon) and security, Bitcoins market and the other fantastic cyber things we talked about.

Anthony called me up the next day and we talked about helping them on a new show about a cyber cop who dies and get’s re-born and goes out in the Dark Web to get the bad guys- I think the working title is “RESTART” it should be kinda cool. But hollywood types are all takers – pro bono- but they reap the rewards. I guess that gAtO will not be a famous star— gAtO OuT

10/30/12

What is Digital Currency:

What is fiat currency:  — Fiat money is money that derives its value from government regulation or law.  —

What is Currency: —  In economics, currency is a generally accepted medium of exchange. –

What is Digital Currency: – 

gAtO cOnFuSeD - with the above definition currency and fiat currency it’s a bit confusing were does Digital currency fit in. I think it’s how you look at it – Today we have Internet banks – that would be digital currency because it’s only in digital form – We also have PayPal one of the leaders in digital currency but both are tied to fiat currency- a government. 

Now when you add E-gold, Liberty Reserves, Pencunix or WebMoney these are a mix of traditional fiat and plain old fashion currency – But when you add BitCoin well that throws a shoe into the jet engine. You see unlike e-gold Bitcoin is not tied to real gold. Bitcoin is defined as a currency but not fiat and that’s the part that really hurts governments and bankers.

I know gAtO is lOcO but it seems that every time a digital currency like e-gold get’s close even when they try to do it right – the good guy’s (governments) come in and stomp on it till it’s a puddle of mud in the ground, next digital currency come on in– get in line, next… Ok e-gold made it too easy to get an account and the bad guy’s got hip to it and ruined it for everyone but the FBI was out to get e-gold from the start. We just can’t have joe-blow in a basement with a e-gold account and the IRS, TAX people not wanting a piece of that action.

Bitcoins are being blamed as EVIL – but Swiss Banks account, Bermuda Shell Games, Luxemboug Shelter, The Cayman Cash or IRA tax-free, tax-exempt, lower Tax rates- tax-free trust – there are all kinds of tricks for the bankers to shelter their money. To hide it they know all the tax codes, all the regulations…and they are very happy.

If we go to Bitcoin or a version of a digital currency that has no -governments, no bankers, and no printing press to go Bitcoin printing making Happy—/ every ounce of pressure will be put on every new digital currencies that do not tie to the BANKS…. they will not allow it.. Who are THEY…you know??? -next Digital Money Laundry -gAtO oUt

10/28/12

Cyber-War Digital -vs- Global Currency

gAtO rEaD - in Forbes – “Biitcoin Prevent Monetary Tyranny” -mEoW- Currency tyranny by global bankers and government can be down right ugly. They can shape debt into deliberate inflation, they can enforce persecutory capital control or even pre-arrange default – let’s not forget LIBOR manipulation and austerity against countries after they have ripped out all natural resources, install a puppet king and all that jazz —/ everything controlled by THE BANK CARTEL. On the other side of the coin..//

On Oct. 6 Susanne Posel reported -/ an attempt to hack into the U.S.A executive branch’s computer system through an unclassified network.  That’s the White House kitties with a simple “Spear Phishing” attack. They trolled for names of Top Military and government officials in Google’s Gmail account and got a few hit. Once again “Open Source Intelligence”  

- everything goes somewhere and gAtO (as well as others) goes everywhere.

A few days later the Iranians government blocked Gmail by government officials due to fears that Email can be a point of infection for attacks- I think that’s in the security 101 course

Bruce Schneier one of our cyber gods that knows what he is talking about say’s it best about chicken little screaming “the cyber Sky is falling” – STROKING CYBER FEARS – “Secretary Panetta’s recent comments are just the latest; search the Internet for “cyber 9/11,” “cyber Pearl-Harbor,” “cyber Katrina,” or — my favorite — “cyber Armageddon.” But Bruce says it best in his own words  “There’s an enormous amount of money and power that results from pushing cyberwar and cyberterrorism: power within the military, the Department of Homeland Security, and the Justice Department; and lucrative government contracts supporting those organizations. As long as cyber remains a prefix that scares, it’ll continue to be used as a bugaboo.”  -may I add-/ to make lots of MONEY in private-corporation and government contracts worldwide. Fear + Cyber Security = BIG $$$

Fear is what bankers see as Africa is the first country that is being targeted for the BitCoin virtual currency. Imagine the turmoil in Nigeria and other places in Africa it has had a history of unstable governments the idea of a digital currency is appealing… La-Times read -Africa — the next frontier for virtual currency?

BUT the Bitcoin is NOT ready People[1] Satoshi warned us – it’s BETA software – It has only 21 Million bit coins and the last Bitcoin will be mined in 2040 – Governments and corporations have already started the propaganda that Bitcoin’s are EVIL. — 

The most important thing is, we must all be active in out lives to make the new future- They fear us “the people” will wake up and take control of our lives” – the new generation was born with a cell device in their hand and they are using it earlier and earlier to communicate.

The Cyber war that we see is not as bad as the Cyber War that is being fought with fear and propaganda because the bankers will lose control with – One World Currency – One World Government – that is what the hacktivist want, the new kids, the new generation.

Cyberspace is the city of Babel and in this mystical city everyone was able to communicate to anyone and exchange idea, dreams and culture—/ but this cause the priest to lose control so they destroyed it and made it EVIL. It’s only Evil when you lose your power, It is EVIL when you give them control and power — it’s our turn now -gAtO oUt

References:

[1] Satoshi Nakamoto – Bitcoin Creator -https://en.bitcoin.it/wiki/Satoshi_Nakamoto

http://latimesblogs.latimes.com/world_now/2012/04/bitcoin-virtual-money-africa-rudiger-koch.html

http://www.forbes.com/sites/jonmatonis/2012/10/04/bitcoin-prevents-monetary-tyranny/ Bitcoin Prevent Monetary Tyranny

09/22/12

Hacking the Credit Card Code

gAtO wAs- surfing around and found this information targeted at future cyber gAtIcOs- These are the basic tricks that the bad guy’s are using to game the system. and they share this basic information to help other stupid wanna-bee bad guys. TRUST but VERIFY – be a critical reader and remember that this comes from bad guy’s always trying to trick you. I checked out most of the LINKS and deleted any ones I though may be bad. Some of this is a bullshit, some stupid  and some is real from what I can tell – enjoy–gATO oUt  

for educational PURPOSES ONLY. – how the Cyber Criminals are using the system for cyber-money laundering. 

Cracking The Credit Card Code

Credit Cards 2 BTC-Bitcoin – BTC-Bitcoin 2 Credit Cards

 

Wasn’t quite sure where to put this, but I decided I’d share some information on the actual code of a credit card.

In reading this you will be able to interpret credit card codes efficiently and actually be able to learn about the card itself. This is all simply by knowing the 16 digits on the front of a card.

The first digit of a card is called the Major Industry Identifier (MII). It designates the category of the entity which issued to card. This is useful in finding what exactly the card is for.

1 and 2 are Airlines,

3 is Travel and Entertainment

4 and 5 are Banking and Financial

6 is Merchandizing and Banking

7 is Petroleum

8 is Telecommunications

9 is a National assignment

The first 6 digits are the Issuer Identification Number (IIN). It will identify the institution that issued the card.

Visa: 4xxxxx

Mastercard: 51xxxx – 55xxxx

Discover: 6011xx, 644xxx, 65xxxx

Amex: 34xxxx, 37xxxx

Cards can be looked up by their IIN. A card that starts with 376211 is a Singapore Airlines Krisflyer American Express Gold Card. 529962 designates a pre-paid Much-Music MasterCard.
The 7th and following digits, excluding the final digit, are the person’s account number. This leaves a trillion possible combinations.

The final digit is the check digit or checksum. It is used to validate the credit card number using the Luhn algorithm

How to use this information to validate a credit card with your brain:

Take the below number (or any credit card number)

4417 1234 5678 9113

Now, double every other digit from the right

(4×2, 1×2, 1×2, 3×2, 5×2, 7×2, 9×2, 1×2)

Add these new digits to the undoubled ones (4, 7, 2, 4, 6, 8, 1, 3)

All double digit numbers are added as a sum of their digits, so 14 becomes 1+4.

8+4+2+7+2+2+6+4+1+0+6+1+4+8+1+8+1+2+3 = 70

If the final sum is divisible by 10, then the credit card number is valid.

If it’s not divisible by 10, the number is invalid or fake.

In this case, 70 is divisible by 10, so the credit card number is indeed valid. This works with every credit card and opens many ideas to the mind.

 

Credit Cards to BTC-Bitcoin

These are methods that have been discussed on HackBB for cashing CCs into bitcoins. Before I continue let me get this out of the way. No you can not cash your CVV directly into bitcoins. Exchangers know the risk involved in accepting reversible credit for non-reversible currency, and the few that have ever accepted direct CC payments were scammed out of business. There are ways around this issue..

CC -> SLL -> BTC

Editors Note:

VirWox wised up to this method and started forcing users to validate their SL avatars..

http://clsvtzwzdgzkjda7.onion/viewtopic.php?f=49&t=1836

Thought I’d tidy this up a bit with a noob-friendly tutorial on how to buy bitcoins with a CVV through VirWox.

What you will need.

  • Valid CVV (any country will do)
  • Clean Socks5 proxy as close as possible to cardholder’s address
  • Good DNS setup

Ok lets get started.

You’ll need an email account. Go create a new one at yahoo/gmail/whatever…..doesn’t matter which (i wouldn’t use tormail for this……too much of a flag).

Go to https://www.virwox.com/, and create a new account using the email you just set up and the name on the CVV. Just make up a fake SL avatar – you don’t need to validate it.

You will then have to confirm your new account by retrieving the temp password from your email.

First thing to do in Virwox is change your password in the “Change Settings” tab on the left.
Now we’re ready to do some carding. Click “deposit” and scroll down to the Skrill(moneybookers) option. Then enter the max amount for the currency of your card (currently $56 for USA cards) and click the moneybookers logo.

If you have NoScript installed you will have to temporarily allow all this page. Enter the details you have for the CVV and make up a fake date of birth if you dont have a genuine one.

If all goes well, you will then be taken back to the main page with your USD/EUR/GBP balance filled.

On the “exchange” menu left of screen choose USD/SLL to convert to Linden $s, then BTC/SLL to convert to bitcoin.

Now withdraw.

Easy Profit.

Note:

  • Typically Virwox hold funds for 48 hours before releasing.
  • You can process payments a total of 3 times with each card…..one transaction every 24hours.

CC -> Moneygram -> BTC

If you have fulls (ssn, dob, etc) you can try cashing out through moneygram. To do this just go to site and sign up for an account under the cardholders name. Be sure to chain a regional socks5 with your Tor connection so you appear to be from the same country that the cardholder is in [4]. Select Same Day service. It will prompt you for the card details, dob, and the last 4 digits of the ssn. I would suggest running this name through a background check (any background search site will do) in case you have to answer a security question to send the funds over. Don’t try to send over too much. If you accidentally go over the limit or try to send a suspicious amount you risk flagging the account. No more than $300 from each CC. If everything goes smoothly you can try exchanging through https://wm-center.com for bitcoins. You can find more information on WM-Center here: https://en.bitcoin.it/wiki/WM-Center

CC -> Forex -> BTC

The process is actually really simple. I was surprised to find the site. Kinda found it by accident actually.

Site: http://www.rationalfx.com

Using a foreign currency exchange site to change money on a credit card into a foreign currency and to wire transfer the money into a bank account.

In this case, the bank account is at https://mtgox.com

The process goes as follows:

  • Make an email account anywhere.
  • Make an account at MtGox.
  • Make an account at rationalfx.com. (all account info in the name of the cc holder).
  • In rationalfx, add account details, addy, card number, MtGox wire info.
  • Make a transfer.

Process takes 3-5 business days… It turns a cc transaction into a wire transfer so it takes a couple days… (Note: in the interest of speed and not getting the transaction reversed, Monday/Tuesday is the best day to start the transaction)

Once the money is in MtGox, turn it into bitcoins as quickly as possible and move it into your other bit wallets. Wash the coins if necessary…

Easy huh?

Already pulled it off once. 400GBP through a MC without any issues. rationalfx does not seem to have any real safeguards in place. Tor works fine there (though it is best to use an exit node wherever your card holder lives).

When I was testing it first with a visa, it told me 3 times in a row that the transfer failed. I lowered the amount each time and tried again. After the 3rd time it went through but I didn’t have the Verified by Visa password so I couldn’t continue. BOTH Visa AND MC , it seems, will pop up with a verification thingy if its enabled on the card. (Usually US/UK cards)

Make sure when you deposit to MtGox, you include the account identification info for that spacific account. You can find it on the ‘funding options’ -> ‘Bank wire’ page… If you forget that info you wont get your money..
So there you have it. Its simple as pie.. This is not 100% of the info but ya’ll can figure out the rest..

I know ya’ll prolly wont but if you are feeling generous…

Hope you enjoy..

Cashing Methods

This is a collection of cashing techniques that have been discussed on HackBB. Keep in mind before you get started you will need to know how to chain a socks5 with Tor to avoid tripping a fraud filter [1].

Easy PP/CVV cashout

I will preface this by admitting that I may have something to gain since I sell the tools needed to make this work. My mind played connect the dots when reading the forum and checking my messages, and I realized it’s easy to cash out with a little investment and work ahead of time.

I can’t guarantee this will work, I never tried it. But I do understand the systems involved so I’m as confidant as I can be.

Everybody wants to know how to cash out. Well, that is easy, the hard part is getting away with it. Any fuckin moron can rob a bank, but it takes a genius to do it time and time again while leaving the investigators in a state of mental confusion akin to drinking mercury and pithing their brains with an icepick.

This is not a step-by-step. Google is your friend (unless you’re signed in). I don’t hold hands, if you can’t figure it out on your own from here, it’s not in your scope.

Ingredients:

  • EU paypal account
  • Fresh email.
  • Anon debit card
  • CVV’s
  • Balls

Ok, Open an EU paypal account from one of the countries below. You can use fakenamegenerator.com or whatever you want. Just make sure is is a merchant and not personal. There are 3 levels, go with the middle. Get an Anonymous debit card, and link it to the paypal, using the CC and not the bank. I know for sure that the bank wont work for US accounts, as it is a deposit only bank account number. Depending on the country and the country’s banking regs, paypal may or may not try to take back the verification amount they sent. Forget that.

Once the paypal and debit card are connected successfully, it is time to get your free money. I don’t know what language you are using in the EU paypal, but it goes something like this: Merchant tools–>Generate Paypal button. Alternatively, you can google “paypal but it now button” in quotes. Figure it out.

I hope to god you got a CVV by now, because that’s whats next. Using the code you got for the BIN button, go to http://htmlpreview.richiebrownlee.com/ Paste the code, click the button, and now you are at a paypal purchase page. Depending on where you are, and I haven’t figured this out yet, you may have an option to pay with CC. It used to be that with USA, you could pay with CC but not sign up. So make sure you have a USA CC. If you registered a simple personal account, paypal will ask buyers to sign up first, and you might as well stop there.

If you see the option to either sign up or pay with CC, you are GOLD.

The amount will be immediately available on the paypal you created. Now, just withdraw funds to the debit card. 3-5 days, it will be there. Go shopping. See the girl with the big titties? Buy her a drink. You win.

I cannot account for moneybookers, as I’ve never used it, but I imagine it would work the same way. To test with moneybookers, I suggest linking to a greendot card with a throw away account, since you need to verify SSN. That can be your legit moneybookers anyway.

Here is a list of countries that SUPPOSEDLY don’t need a VBA, only a CC:

Bulgaria

Chile

Cyprus

Estonia

Gibraltar

Iceland

Indonesia

Latvia

Liechtenstein

Lithuania

Italy

Israel

Liechtenstein

Luxembourg

Malaysia

Malta

Philippines

Poland

Romania

San Marino

Slovakia

Slovenia

Turkey

UAE

Uruguay

 

I’ll share with you a cashout method

I’ve been using square on my android to cash out cards… All I did was register with jingit com and apply for their visa debit card… I do it this was cause I just watch some ads until I make $2.00 which is the fee for the card… once the card arrives you’ll get an account # and routing # as if it were a checkings account. (when you apply for the jingit card make sure you match FB’s DOB with jingit card on the application form)

now you register on squareup com and link it to the debit card acc. to verify the initial deposit they make don’t wait til you get the statement, call the # on the back of the card and you can get your transaction history over the phone. (I forgot you have to activate the card over the phone. this is why you need the SSN and DOB)

I only do this over open wifi and my android is not activated with any company. Also you must have location services enabled so don’t do it close to your home.

you don’t need the reader, you can charge cards manually entering the card info. you need at least the billing zipcode. transactions under $25 don’t require signature and you can skip the receipt.

I always get another prepaid card to swipe it when I use a new acc for the first time, I never start using an acc entering numbers manually… it’ll raise flags. don’t use your own card linked to your bank… that would be stupid

Beating the Online Casinos/Bookies (uk)
What you need

  • 2 machines, or an accomplice to play your dummy account.
  • UK non-3DS CVV
  • 50 GBP cash
  • Access to a William Hill shop

Create 1st account

Setup VM on system 1. I’m not going in to any great detail on how to do this as it’s covered elsewhere on the board. Use something like: Tor -> VM -> [UK]VPN / VPN1 -> VM -> [UK]VPN2.

Download the software and setup an account using either your genuine details, or some fictitious details from the local area of the shop you will be using. The deposit option you are interested in is “Quick Cash”

Off you go to a local William Hill shop to buy your Quick Cash voucher (say 50 GBP for this example). The shop prints 2 vouchers. One they keep which you will have to sign (in your fake name if you’ve used one), the other is given to you and contains the transaction code to enable you to deposit online.

Now either contact your accomplice who will play the other account or:

Create 2nd Account

Setup VM on system 2.

Download the software same as for Account 1, and this time setup the account using the details from your CVV. Deposit using CVV (eg 400 GBP).

Dumping Chips

Again, i’m not going into any great detail on this….if you don’t know how to play poker, then learn…fast. Become familiar with which hands tend to generate the largest pots (eg AA vs KK). 6-handed tables are a good choice (0.50/1 for these amounts).

Over the course of 1-2 hours, pass chips from Account 2 -> Account1, randomly losing some chips to the other players at the table. A reasonable target is for Account 1 to be +300.

Cashing out

Ok, you’re happy with your 300 profit. Click withdraw in the cashier, again choosing the “Quick Cash” option. Print off the voucher, then return to the shop where you were earlier in the day. Present the voucher, sign your name again to verify and walk out the shop 300 GBP richer for a few hours work.

Note: It’s probably not a great idea to use fictitious details if you use a shop in your own local area. No ID should be required for amount <500 GBP. If you’ve dumped chips with enough care, it’s almost impossible to prove you were involved in any fraudulent activity. You’ll have cash in your hand before anyone realizes any fraud has taken place, so no chance of freezing accounts.

Carding Online

Editors Note:

I edited out the “ATTAINING HIGHER LEVELS OF ANONYMITY” section due to it being

obviously wrong and changed the CC check link. Don’t add it in.

LEGAL TIDBITS

This FAQ is intended for educational PURPOSES ONLY.

THE BIG QUESTION: WHAT IS CARDING?

- Well, defined loosely, carding is the art of credit card manipulation to access goods or services by way of fraud. But dont let the “politically correct” definition of carding stop fool you, because carding is more than that. Much more.

Although different people card for different reasons, the motive is usually tied to money. Yea, handling a $9,000 plasma television in your hands and knowing that you didnt pay one red cent for it is definitely a rush.

But other factors contribute to your personal reason for carding. Many carders in the scene come from poor countries, such as Argentina, Pakistan, and Lebanon where $50 could mean a weeks pay, on a good day. Real carders (the one that have been in the scene the longest) seem to card for something more, however. The thrill of cc manipulation? The rush that the federalles could bust down your door at any minute? The defiance of knowing that everyday that you are walking among the public is another day that you have gotten away with a federal crime?

Whatever your persona reason for carding is, this tutorial should answer a few noobie questions and take the guessing out of the entire carding game. The resources and techniques mentioned in this tutorial are NOT, I repeat, NOT the only methods of carding. Experience in carding is key. You have to practice your own methods and try out new techniques in carding to really get a system that works for you. This tutorial is meant to get you on your way.

THE BASICS: WHAT DO I NEED AND WHERE DO I GET IT?

Credit Cards: Yes, CCZ.

“do you have any ccz” “where can I hack CCZ” “where can I get a list of valid CCZ?”

You need money to make money. Plain and simple. Which means that the only way your gonna be able to get ccs if you have ABSOLUTELY NO MONEY is if you successfully rip a noobie with 100 cards (but what noobie has 100 cards?), if you have any background in database hacking, if you trade for your shit, or if you know someone that’s willing to give you ccz all day.

I know thats a discouraging statement to all of you, but we have to keep shit realistic. The easiest way to get ccz is to purchase them.

“but I can’t get a job/I don’t wanna work!”

Having a regular 9 to 5 job is not a bad idea in the carding scene. Not only will you have some sort of alliby to why you have all this expensive shit in your house, but you can also use the money (who cant nowadays) to pay bills. You cant card forever, and you cant sustain yourself by carding alone.

If you are REALLY strapped for cash, you have to go through the alternative: trade for your resources. you have to be resourceful in carding, meaning you have to use what you got. Got a psybnc admin account? Offer psybnc user for a cc or two. Got shells? roots? Can you make verification phone calls? just ask yourself “what do I have that might be valuable to someone else?” and work with that. It dosnt have to be big, it just has to get you a few cc’s in your palms.

Once you’ve run your first successful cc scam, DONT SPEND ALL YOUR EARNINGS. Save $200 and re-invest back into the carding community. head to SC and get better cards. If you have level 2 cards, I suggest carding C2it/Paypal and using that $$ to buy ccs. (successful C2it/PP scamming techniques will not be discussed in this tut, sorry)

To other minor pointers on rippers and legit sellers, please scroll down to “SELLERS, TRADERS, AND RIPPERS, OH MY!”

“where can I check my CCZ?”

Knowing wether your cc is valid or not is really important for saving some time and energy. you can check them under http://www.soundcloud.com

The idea way for checking ccz is through an online merchant (authorize.net, linkpintcentral.) These merchants can verify cc amounts without charging your ccs. Good luck finding one. People on IRC want a ridiculous trade for These merchants (cvv lists, cash). So if you run accrosss a legit merc, dont give it out! even to your best buds! online mercs are gold in the world of carding.

Other methods for verifying cc amounts include registering your cc on an online bank. (You will need at least a level 2 card, level 3 for ATM cards). alot of online banks can give you limit, billing addy, ect ect but they require at least a level 2 cc (more info on ccz below)

CREDIT CARD FRAUD: INFORMATION IS KEY.

I want to make something clear right now. The secret to carding is not the number of cards you own, its what you can do with the cards. What do I mean by that? Simple.

Hypotherical situation: My name is Johnny and I have 3 ccs with SSN, DOB, CVV NUMBER, MMN, NAME, STREET ADDRESS, CITY, ZIP, AND BILLING TELEPHONE NUMBER. I have a friend named Billy. Billy has 300 CCCZ with CVV, MMN, NAME, STREET ADDRESS, CITY, ZIP, AND BILLING TEL. NUMBER. Whos more likely to successfully card something?

Simply put, I (Johnny) am. Why? Because I have more information that can prove that I am the person who owns this CC than Billy does with his 300 CCVZ. Does that mean Billy’s not gonna card anything? No, that just means Billy’s gonna have a hard time carding anything without verification.

So to sum up this lesson, you have to get information on your mark (the person that youre impersonating.) #1 rule in carding is: the more information you have on a person, the better chances you have for a successful transaction. Here is the information you’re looking for(note: the levels of a card is not a tehcnical carding term, I’ just used L1 L2 L3 to simplify shit throughout the tutorial.) :

NAME: ADDRESS: CITY: STATE: ZIP CODE: TEL. BILLING NUMBER: CARD NUMBER: CARD EXP DATE: CVV CODE:

(LEVEL 1: REGULAR CVV. If you have this much info, youve got yourself a regular cc. Nowadays you need this much info for carding ANYTHING worth mentioning. If you have any less than this information, you’re shit outta luck. :\)

Social Security Number (SSN): Date Of Birth (DOB): Mothers Maiden Name (MMN):

(LEVEL 2: (PARTIAL FULL-INFO) If you have this much info, your ccz are on another level. With this info, you should be able to card PayPal, C2IT, and other sites without too much of a hassle.)

BANK ACCOUNT NUMBER: ROUTING NUMBER: BANK NAME: BANK NUMBER: DRIVERS LICENSE NUMBER: PIN NUMBER (For CC or ATM card)

(LEVEL 3: (true full-info) If you have this info, youre cc is ready to card anything your heart desires)

Now if all you have is a regular cc, dont discourage. Just do some research and build your cards as much as possible:

First, go to whitepages.com and try to lookup your marks street address and phone number. Make sure it matches the info you have on your cc..

Last, but not least, take a quick look in ancestry.com. Ancestry.com is a bit of a pain, but you can lookup DOB and MMN (ie, if your marks name is anthony hawkins, his father is david hawkins and his mothers name is bella donna, Donna is the MMN)

So size up your cards and move on to the next lesson:

DROPS AND VERIFICATION TECHNIQUES:

The right drop is essential to your scamming needs. Finding legitamite drops inside and outside of the US is hard. Many people keep your shit and don’t send, or some people dont pick up the package at all! (theres nothing worse than watching your hard-earned laptop going back to the store because it was refused by the recepient)

If you live inside (or even outside) the USA, you’re better off scoping a drop out on your own. A drop is basically an empty home that looks to be inhabited. This is the shipping address you use for your carding needs. Your items should only picked up at night. As awlays, be sure to have a cover-story in case someone asks why youre snooping around an empty home. “I’m picking up a package for the person that used to live here” is a legit excuse. Or even “my father is the real-estate agent.” is good. Just keep in mind that if you order anything over $500, it will USUALLY need to be signed for, (this statement is based upon FEDEX/UPS policies. I’ve gotten feedback from people that state they have gotten their local UPS employee to drop merchandise worth 1k at thir doorstop using a note, but these are uncomfirmed rumours.) Wether youre willing to sit and wait all day on the doorsteps of your drop, or you rather leave the postman a note that says you’ll pick it up at the nearest postal station, its up to you. (Dont panic if you have to pick up a package at the station. When you walk in, you need to be calm so it dosent arise suspicion. If the clerk asks you to wait more than 3 minutes, PLEASE dont stand there waiting to get busted, tell him/her you have a prior engagement and quickly exit stage left. )

If you live outside the USA, youre just gonna have to trust someone. The easiest way to get a legit drop in the USA is to ask around for people that have had successful experiences with a drop. Most drops hold a 50/50 or “you card something you card me sommething” policy. If you’re talking so someone thats trying to cut themselves in to the deal “Ie yes, I know someone but you have to card me something too” just move on, they’re wasting your time.

Just a quick note, if you’re carding something like a plasma television, you’ll have better luck using a drop from the same state, changing the billing addy (you can change a billing addy with a level 2 card, youll need a L2 card for carding a plasma tv neways) and acting like you just moved. (have that mindset when you call in: I am (name of cardholder) and I just moved from (city a) to (city b)) Once you have the item in your possession, you SHOULD GUESS THAT YOUR DROP HAS BEEN FLAGGED. What does this mean? YOU SHOULD NOT – I REPEAT SHOULD NOT RETURN TO A DROP ONCE YOU’VE CARDED EXPENSIVE SHIT TO IT. Regardless of wether your drop is flagged or not, do you really want to take the chances?

The cellular phone: The anonymous cell phone is the carders sword. With it, you will make several calls to several companies using several names. You should keep this cellular phone for carding ONLY. (just in case you become confused and forget who youre talking to.) If you have a phone phreaking connection, youre a lucky SOB. For the rest of us, we gotta go out and get a pre-paid cellular phone. (a phone which dosent require much info to purchase and use.)

THE SITES: WHATS CARDABLE AND WHATS NOT?

Ok, so you got your ccs, your drop and youre as anonymous as you can make yourself. Now what sites are cardable? This is the easiest question I have to answer on this FAQ.

-ANY AND ALL SITES ARE CARDABLE- (THX CIA AND `Q_)

Why do I say that? because it’s true. Like I said in chapter two of this little tutorial, its not about how many cards you have, its what you can do with them. Alot of this has to do with your mindset as well.

If you have a card from Johnny Knoxville from Texas, you must be Johnny Knoxville from texas. Depending on the information that you have acquired from Johnny Knoxvile, you must convince merchants and I-stores that you A R E Johnny Knoxville.

When approaching these I-stores, you want to scope things out first. Ask yourself a few questions:

-whats their policy on different shipping address than billing addess?

If they have a “must call” policy, make sure to give them an anonymous number where you can be reached (have your anon cell phone ready for this.)

-do they accept other payments besides credit?

If they accept other payment methods, sometimes its easier to card with a different payment method. (Ive had more luck on Dell.com with online checks that I have with credit cards.)

Whatever you card, make sure that you have all your info prepped before carding it. If youre carding something over 1k, get on your anonymous celly and call up the banking institution of the person’s card youre holding. Make sure to let them know that youre making a purchase of a large limit, so they dont deny your card.

Know Thy Enemy: What the CC Payment Gateways Check for Fraud

These are the measures taken by CardPay which is a payment gateway to rate fraud. It wouldn’t be really hard to imagine that other gateways take the same measures. Although we all know the rules of thumbs, I thought it would be interesting to see what they *actually* measure to evaluate high risk of fraud. The amount of information that they actually collect is mind blowing.

Fraud Screening system of CardPay Inc. Payment gateway performs comprehensive analysis of transaction data, using several techniques simultaneously. Data from external systems used during screening process, also as internal transactions history and various lists.

Transaction passes through so called “pipeline”, consisting of following steps:

  • Rules system
  • Card and cardholder’s data analysis using automated fraud screening service
  • Multivariate regression analysis of in-house transactions database.
  • The above mentioned subsystems are described in more details in the following section.

Rules system: Fraud rules logic implemented in stored procedures by Oracle DBMS, which enables adding and modifying rules without service downtime. Before passing order through rules chain, additional information retrieved from MaxMind credit card fraud prevention service. MaxMind returns to gateway following data:

  • Cardholder located in high-risk country. At a moment following countries recognized as high risk: Egypt, Ghana, Indonesia, Lebanon, Macedonia, Morocco, Nigeria, Pakistan, Romania, Serbia and Montenegro, Ukraine, or Vietnam.
  • Whether country of IP address matches billing address country (mismatch = higher risk)
  • Country Code of the IP address
  • Distance from IP address to Billing Location in kilometers (large distance = higher risk)
  • Estimated State/Region of the IP address
  • Estimated City of the IP address
  • Estimated Latitude of the IP address
  • Estimated Longitude of the IP address
  • ISP of the IP address
  • Organization of the IP address
  • Whether IP address is behind an anonymous proxy(anonymous proxy = very high risk)
  • Likelihood of IP Address being an open proxy(transparent)
  • Whether e-mail is from free e-mail provider
  • Whether e-mail is in database of high risk e-mails
  • Whether usernameMD5 input is in database of high risk usernames.
  • Whether passwordMD5 input is in database of high risk passwords.
  • Whether country of issuing bank based on BIN number matches billing address country
  • Country Code of the bank which issued the credit card based on BIN number
  • Whether name of issuing bank matches entered BIN name. A return value of Yes provides a positive indication that cardholder is in possession of credit card
  • Name of the bank which issued the credit card based on BIN number
  • Whether customer service phone number matches BIN phone. A return value of Yes provides a positive indication that cardholder is in possession of credit card.
  • Customer service phone number listed on back of credit card.
  • Whether the customer phone number is in the billing zip code.
  • Whether shipping address is in database of known mail drops.
  • Whether billing city and state match ZIP code.
  • Whether shipping city and state match ZIP code.

After gathering of all data, rules in chain applies to order data sequentially, increasing or decreasing total fraud score.

Rules chain consists of following rules:

  • Cardholder country rating(global list)
  • Cardholder country rating(as set up by merchant)
  • Cardholders IP found in black lists
  • Cardholders IP range found in black list
  • Cardholders email found in merchants black list
  • Cardholders email found in global black list
  • Cardholders email found in forbidden email providers list
  • Card PAN doesnt present in global black list
  • Card PAN doesnt present in merchants black list
  • Cardholders address not in global black list
  • Cardholders address not in merchants black list
  • Order amount doesnt exceeds global purchase limit
  • Order amount doesnt exceeds local(merchant) purchase limit
  • Single PAN daily turnover doesnt exceeds global daily limit
  • Single PAN daily turnover doesnt exceeds local(merchant) daily limit
  • Billing address daily turnover doesnt exceeds global daily limit
  • Billing address daily turnover doesnt exceeds local(merchant) daily limit
  • PAN number brute force check
  • Expiry date brute force check
  • CVV brute force check

This is base rules set. Our fraud officer constantly monitors transaction flow and modifies existing rules and implements new ones to gain maximum fraud prevention efficiency.

Transaction history analysis(in-house service): After successful rules checking, transaction data verified against pool of existing transactions, enabling most accurate results and fraud decisions possible. If this routine detects no reasons to block further processing.

Transaction history analysis(external service): If in-house transaction history doesn’t shows signs of fraud, external database enters into business.

Online Verification Procedures
Over the years, I’ve come across dozens of procedure lists for top-tier merchants regarding online transations and fraud reduction. I’ll detail several companies verification procedures below.

While most virtual carders are aware of the various procedures in place to verify orders placed online, few actually understand the implementation of fraud scoring, and the order in which these verification methods are used.
The Risk Management Toolkit

  • AVS
  • CVV
  • IP/GEO/BIN
  • Cardholder Authentication (VbV/MSC)
  • Phone Verifications
  • Manual Order Reviews
  • Chargebacks & Representments
  • PCI Compliance & Data Security

 

AVS – Address Verification Service

How It Works

  • Provides a Match or Non-Match Result for only the Billing Street # and Billing Zip Code… not the actual address. (i.e. “1234 Test Street” is parsed into “1234” just the same as “1234 Wrong Way” would be).

Implementation

  • Available on any Internet merchant account and virtually any Payment Gateway.
  • Most gateways provide an AVS configuration area where you can specify whether you want to automatically“decline” (i.e. do not settle) an authorization that has an AVS mis-match or non-match.

Benefits

  • Easy to implement Limitations
  • Works only for U.S., CND, U.K. cardholders so this does not help you scrub most international transactions.
  • A growing % of compromised credit cards – especially those obtained through inside jobs or hacked databases– will also contain the necessary information to provide a valid AVS match result.

Recommendation

  • If you handle a mix of int’l and U.S. sales, you will want consider scrubbing with AVS on the U.S. transactions but do NOT scrub via AVS for any international transactions as they will always fail. AVS should not beconsidered a primary means of verifying the validity of a transaction. Nearly 20% of the fraud can potentially be eliminated by scrubbing “Non-Matched” AVS match results.

CVV – Card Verification Value

How It Works

  • A service with many names – CVV2, CVC2, CID – but the premise is the same for all.
  • Provides a Match or Non-Match Result for the 3-digit or 4-digit number embossed on the back of the cardholder’s card. The CVV is NOT generally encoded on the magnetic stripe and therefore is less likely to be captured as part of a card skimming tactic.

Implementation

  • Available on any Internet merchant account and virtually any Payment Gateway.
  • Most gateways provide an CVV configuration area where you can specify whether you want to automatically “decline” (i.e. do notsettle) an authorization that has an CVV non-match or non-entry.

Benefits

  • Works for virtually ALL cardholder accounts – both U.S. and international.
  • There is no valid reason why a legitimate cardholder, in possession of the card, would not be able to enter a 100% matching numberfor this.
  • Merchants are not allowed to store CVV and as such the CVV # is less vulnerable than the data used for AVS.

Limitations

  • CVV data can only be used for a real-time transaction. CVV data can not be stored and therefore can not be utilized for Recurring Transactions.

Recommendation

  • CVV is a recommended service to utilize for ALL initial transactions processed. Based on our internal charge-back analysis, merchants can reduce their fraud ratesby as much as 70% by simply requiring a matching CVV result.

IP/GEO/BIN Scrubbing

How It Works

  • Compares the IP address of the customer purchasing with their stated geographic location (i.e. why is the customer from California ordering from Europe?)
  • Compares the BIN # (first 6 digits) of the credit card with the IP or stated geographic location of the customer (i.e. the customer isusing an US-issued credit card but they are from Europe?)
  • Based on the IP and BIN # and other customer-inputted data, a vast amount of information can be returned on the transaction.

Implementation

  • Custom direct integration into a service such as MaxMind.com
  • Use an existing integration that is part of a Shopping Cart such as X-Cart, LiteCommerce, osCommerce, ZenCart,ASPDotNetStorefront.
  • Use an existing integration that is part of a Billing System such as WHMCompleteSolution, ClientExec or Ubersmith.

•Use an existing integration that is part of a Payment Gateway such as the Quantum Payment Gateway.

Benefits

  • Fast, Cost Effective and Non-Intrusive
  • Provides merchants with an excellent “do the pieces fit consistently?” analysis.
  • Can block up to 89% of all fraud if properly implemented

Limitations

  • Generally not reliable for AOL users due to the way that AOL routes its traffic (AOL users require a merchant-specific approach)
  • Proxy database is always in a real-time process of being updated as new proxies open up.

Recommendation

  • IP/GEO/BIN fraud scores should be used in the order evaluation process more as a means of flagging transactions as “high risk” formore intensive scrubbing vs. being an outright decline.

Examples of what IP Geo-Location can tell you:

YELLOW ALERTS

  • Free E-mail Address: is the user ordering from a free e-mail address?
  • Customer Phone #: does the customer phone # match the user’s billing location? (Only for U.S.)
  • BIN Country Match: does the BIN # from the card match the country the user states they are in?
  • BIN Issuing Bank Name: does the user’s inputted name for the bank match the database for that BIN?
  • BIN Phone Match: does the customer service phone # given by the user match the database for that BIN?

RED ALERTS

  • Country Match: does the country that the user is ordering from match where they state they are ordering from?
  • High Risk Country: is the user ordering from one of the designated high risk countries?
  • Anonymous Proxy & Proxy Score: what is the likelihood that the user is utilizing an anonymous proxy?
  • Carder E-mail: is the user ordering from an e-mail address that has been used for fraudulent orders?
  • High Risk Username/Passwords: is the user utilizing a username or password used previously for fraud?
  • Ship Forwarding Address: is the user specifying a known drop shipping address

IP/GEO/BIN Scrubbing (Continued)

Open/Anonymous Proxies: an open proxy is often a compromised “zombie” computer running a proxy service that was installed by a computer virus or hacker. The computer is then used to commit credit card fraud or other illegal activity. In some circumstances, an open proxy may be a legitimate anonymizing service that is simply recycling its IP addresses. Detecting anonymous proxies is always an on going battle as new ones pop up and may remain undetected for some time.

26% of orders placed with from open proxies on the MaxMind min Fraud service ended up being fraudulent. Extra verification steps are strongly recommended for any transaction originating from anopen/anonymous proxy.

High-Risk Countries: these are countries that have a disproportionate amount of fraudulent orders, specificallyEgypt, Ghana, Indonesia, Lebanon, Macedonia, Morocco,Nigeria, Pakistan, Romania, Serbia and Montenegro, Ukraine and Vietnam. 32% of orders placed through the MaxMind min Fraud service from high-risk countries were fraudulent. Extra verification steps should be required for any transaction originating from a high risk country.

Country Mismatch: this takes place when the IP geolocation country of the customer does not match their billing country. 21% of orders placed with a country mismatch on the MaxMind m******* service ended up being fraudulent. Extra verification steps are recommended for any transaction with a country mismatch.

Results that speak for themselves:

ChangeIP – is a DNS and domain name registration provider. The company provides free and custom Dynamic DNS services to more than 50,000 users. Before implementing MaxMind, ChangeIP was losing as much as $1,000 per month because it sold instantly delivered digital goods and could not recover the losses if the purchase turned out to be fraudulent. After implementing MaxMind, losses were reduced by 90%.

MeccaHosting – is a Web hosting company based in Colorado. Since integrating MaxMind, Mecca Hosting has not received a single chargeback. On average, 12-15 fraudulent orders pass through the in-house checks each month but are flagged by MaxMind. Over the last 5 months, this has saved MeccaHosting atleast 60 chargebacks and $6,000 in unnecessary costs.

Red Fox UK – is a Web hosting provider and software development company based in the UK which offers solutions for smalland medium sized businesses all over the world. By using MaxMind, Red Fox UK was able to increase its revenue by 4% while reducing its chargebacks by 90%.

365 Inc. – is a digital media and e-tailer specializing in soccer & rugby with a large international customer base that processes over 10,000 transactions per month. By integrating MaxMind, chargebacks were reduced byover 96% from more than $10,000 per month to less than $500 per month. At this point, most charge backs are general order disputes as opposed to fraud.

Whew. A lot of editing. I’ll post the remainder in a bit.

 

07/24/12

BitCoin 101

BitCoin 101

Forget most things you’ve heard.  People discover BitCoin in a variety of ways, but usually pick up some sort of misconception like “BitCoin gives free money to people with computers” or “in order to use BitCoin I have to use a program that wastes electricity for nothing” along the way.  Here is a good summary to help you understand BitCoin in general, by focussing on what BitCoin is and what problem it solves.  These two things are not typically well explained on most websites, and it is difficult to appreciate just how effective a technology BitCoin is until they are understood.

What BitCoin is:  An agreement amongst a community of people to use 21 million secure mathematical tokens–”bitcoins”–as money, like traditional African and Asian societies used the money cowry.  Unlike the money cowry:

  • there will never be more bitcoins
  • they are impossible to counterfeit
  • they can be divided into as small of pieces as you want
  • and they can be transferred instantly across great distances via a digital connection such as the internet.

This is accomplished by the use of powerful cryptography many times stronger than that used by banks.  Instead of simply being “sent” coins have to be cryptographically signed over from one entity to another, essentially putting a lock and key on each token so that bitcoins can be securely backed up in multiple places, and so that copying doesn’t increase the amount you own.

Because bitcoins are given their value by the community, they don’t need to be accepted by anyone else or backed by any authority to succeed.

They are like a local currency except much, much more effective and local to the whole world.  As an example of how effective the community is at “backing” the bitcoin: on April 4th 2011 30,000 bitcoins were abruptly sold on the largest BitCoin exchange, consuming nearly all “buy” offers on the order book and dropping the price by nearly 1/3.  But within a couple of days, the price on the exchange had fully rebounded and bitcoins were again trading at good volumes, with large “buy” offers slowly replacing the ones consumed by the trades.  The ability of such a small economy (there were only 5 million out of the total 21 million bitcoins circulating then, or about 3.75 million USD worth at then-current exchange rates) to absorb such a large sell-off without crashing shows that bitcoins were already working beautifully.

What problem BitCoin solves:  Mathematically, the specific implementation of the bitcoin protocol solves the problem of “how to do all of the above without trusting anyone“.  If that sounds amazing, it should!

Normally a local currency has to trust all kinds of people for it to be able to work.

So does a national currency.  And in both cases, that trust is often abused.  But with BitCoin, there’s no one person who can abuse the system.  Nobody can print more money, nobody can re-use the coins simply by making a copy, and nobody can use anyone else’s coins without having direct access to their keys.  People who break its mathematical “rules” simply end up creating a whole different system incompatible with the first.  As long as these rules are followed by someone, the only way BitCoin can fail is for everyone to stop using it.

This marvelous quality of not having to trust anyone is achieved in two ways.  First, through the use of cutting-edge cryptography.

Cryptography ensures that only the owner of the bitcoins has the authority to spend them.  The cryptography used in BitCoin is so strong that all the world’s online banking would be compromised before BitCoin would be, and it can even be upgraded if that were to start to happen.  It’s like if each banknote in your pocket had a 100-digit combination lock on it that couldn’t be removed without destroying the bill itself.  BitCoin is that secure.

But the second way of securing the system, called the blockchain, is where the real magic happens.  The blockchain is a single, authoritative record of confirmed transactions which is stored on the peer to peer bitcoin network.

Even with top-notch digital encryption, if there was no central registry to show that certain bitcoins had already been “paid” to someone else, you could sign over the same coins to multiple people in what’s called a double-spend attack, like writing cheques for more money than you have in your account.  Normally this is prevented by a central authority, the bank, who keeps track of all the cheques you write and makes sure they don’t exceed the amount of money you have.

Even so, most people won’t accept a cheque from you unless they really trust you, and the bank has to spend a lot of money physically protecting those central records, whether they are kept in a physical or digital form.  Not to mention, sometimes a bank employee can abuse their position of trust.  And, in traditional banking, the bank itself doesn’t have to follow the rules you do–it can lend out more money than it actually has.

The blockchain fixes all these problems by creating a single master registry of the already-cryptographically-secured bitcoin transfers, verifying them and locking them down in a highly competitive market called mining.  

In return for this critical role, the BitCoin community rewards miners with a set amount of bitcoins per block, taken from the original limited quantity on a pre-agreed schedule.  As that original amount gradually runs out, this reward will be replaced by fees paid to prioritise one transaction over another–again in a highly competitive market to ensure the lowest possible cost.  The transactions are verified and locked in by the computational work of mining in a very special way so that no one else can change the official record of transactions without doing more computational work than the cumulative work of all miners across the whole network.

In conclusion:  All this mathematical technology may be a bit of a mouthful, but what it means in practice is that BitCoin works just like cash.  Bitcoin transactions are intentionally irreversible–unlike credit cards or PayPal where chargebacks can invalidate a payment that has already been made.  And there are no middlemen.  Transactions are completed directly between the sender and the receiver via the peer to peer network.

Because of BitCoin’s intricate design, the network remains secure no matter where or how you process bitcoin transactions.  Which is incredible–no one else has ever tried to create a system that worked this way!

All previous monetary systems have relied on trusting somebody, whether it was the king, town hall, the federal reserve, or banks.  BitCoin doesn’t.  

It’s guaranteed instead by the laws of mathematics, and that’s why it has everyone from technologists to economists very excited.

More –> https://en.bitcoin.it/wiki/Main_Page

07/21/12

Anon iWot Team (Internet War On Terror)

gAtO see – a new twist on Anonymous – They are going after the money trail of terroristDahabshiil International Funds Transfer is their target. This team call’s itself  iWot -“Internet War On Terror” Now the reason gAtO looked carefully at this group is because #1 they are going after bankers –lulz– #2 this is a well though out plan to first show they have the real information before the big data bump. But there is more to this first announcement -

I kind of followed the data and when I saw – BAYD0009016 MOHAMED MURSAL SHEIK A/RAHMAN - this is Omar Abdel-Rahman also know as the Blind Sheikh – famed World Trade Center 1993 bombing. and tied to —  (Somali: Maxamed Mursal Sheikh Cabduraxman) is a former deputy district commissioner and Minister of National Assets and Procurement of Somalia -  Well this posting has got my attention.

This list also has CHILDREN’S VIILLAGES of SOMALIA and some other innocent looking people. After looking at some of the names and email and google a few —> this one is real there are some real terrorist on this list. These guy’s have a little class and I like that in a hacktivist. I will have to keep and eye out for this groups they have interesting lulz -gAtO oUt

This new paste  -http://pastebin.com/VqrSV5bG

Untitled

BY: A GUEST ON JUL 19TH, 2012  |  SYNTAX: NONE  |  SIZE: 11.12 KB  |  HITS: 739  |  EXPIRES: NEVER

After years of offensive hacking against many companies, governments, etc, we [Anonymous], decided to share data related to an internal confidential project from multiple l33t hackers worldwide. We called that “iWot“, meaning “Internet War On Terror“.

Though we will never forget what happened with Megaupload, Pirate Bay, Sopa, friends, etc, our sub-branch of the Anonymous was created with trusted hackers, to follow a specific goal. This email will be the first from us. Thanks to spread our words

We officially declare War on Terror. This is a call for actions of monitoring and/or destruction of companies and institutions that do work with terrorists, rogue countries, etc.

We already broke the security of multiple networks on earth. Each time we will be able to control them, and to steal data, we will then publish our documents on the net, or share them directly to people involved with Newspapers, Justice, etc, worldwide. Some documents, about some banks working with rogue countries, were already shared to some email addresses. And we are quite happy to see that the truth is on its way.. sometimes..

As some of us already explained, we are not a terrorist organization. It’s just that we are fed-up with the fact that our society is loosing time. So we just decided to speed-up actions against terrorists and their friends. We will first try to eradicate the sources of terrorist financing. It is not possible to know at this time the precise scope or the duration of our actions to counter terrorist threats linked to Internet.

Today, as a proof of concept, we will share information about a really evil bank, hiding ugly activities with terrorists. It’s called “Dahabshiil“, an international funds transfer company. Their networks have been broken by different hackers teams for many years. And it’s time for us to share information here in this mail.

Thanks to Wikileaks, secret documents related to Guantanamo detainees publicly explained part of the truth about Dahabshiil. A veteran extremist and a probable associate of Usama Bin Laden, provided direct financial support to Al-Qaeda, Al-Wafa and other terrorist and terrorist support entities through the Somalia-based company Dahabshiil. This bank is currently helping Al-Qaeda, including members of Al-Shabaab.

Despite the fact that the CEO of Dahabshiil tried to get rid of some people, and sometimes people from its own family, this will not be enough for us. We have stolen many many many documents from Dahabshiil. We have destroyed many workstations in Australia, Kenya, USA, UK, Sweden, Somalia, Dubai, Djibouti, etc. We can transfer money from accounts to accounts, despite the stupid security with tokens, passwords, etc. We have modified Windows kernel on many servers and workstations. We have added different kind of cyber-bombs hidden on many workstations and servers. We have powned switches, routers, firewalls, satellite stuff from Telco, etc.

As Dahabshiil members might think we are lying, we have to share data. Feel free to download and copy the data before everything get destroyed, as it’s totally illegal. And now, if Dahabshiil members were unable to understand why the network sometimes crashed, the computers sometimes died, data from internal servers sometimes died, etc, do not search. It was just our actions against you, with people from our team. As an example, we recently destroyed data on the internal LAN in Somaliland, from the Dahabshiil Headquarters (Hargeisa, etc). That’s why you guys, lost Gigs of internal sensitive data on main servers like \\Dahabshiil7, \\Dahabshiil6…

By the way, we also found out that many employees were looking at facebook stuff, personal email, and tons of incredible hardcore porn web sites especially in countries from the Arabian Peninsula, and from the bank (not at home). Also, the password of the account Administrator of the internal LAN in Somaliland, was mainly “Dahab1234″. Awesome. This is how they protect data of their customers. Quite a serious bank. As we have remote 0days against some of their tools, we easily took the control of any workstations there. Then we bounced and bounced, in order to explore this bank. Hopefully, we were a huge number of hackers at the same time, and during months, which helped at stealing sensitive data, spying on end-users and banking transactions, etc. After months and months of fun against these guys who support Terror on earth, we just decided that it was time to destroy them.

This was just the beginning… and just a proof. So from now, dear Dahabshiil members and customers, you can expect a global internal destruction in less than 2 months. You can keep on asking external consultants, even in Europe, about how to install Antivirus, Firewalls, NAC, IPS, Waf, etc. But we will still destroy your networks, steal your data, and sometimes share internal stuff to the public. This is called a sabotage… We had first to be sure that you could not get rid of our offensive tools. That’s why we used two layers of tools. Skilled stuff (with kernel 0dd modifications, etc), and easy tricks (to annoy and to play with your network/data). Now it’s ready. The bombs will kill your networks and your data in less than 2 months. You can also backup the poor data that you still have, but we also infected random Office/PDF documents left, so you’ll just backup some of our bombs, and your network will still die.

If you want us to immediately stop this cyber-sabotage, it’s quite easy. We just ask you to stop lying, to recognize your help with Somalia terror, and to officially change your behavior. We need a public message from you, as a proof. As you might have seen, public excuses of far more bigger banks than Dahabshiil, were done recently, from people who worked with rogue countries, etc. So, we just ask you to do do the same and to change. We will monitor you, as we already made these years. You have 2 months. Maximum. If we see that you are still asking for help against us, to your supposed-to-be IT Security consultants (UK, etc), or if we see that you are trying to clean our stuff in your kernels, etc, we will then launch the cyber-bombs before the 2 months. You don’t have the choice. You have to submit. You have to leave this world of hate, this world of slaughters, this world of killers, and to leave terrorists behind you.

Of course you needed money. Of course most of your employees/customers are not terrorists. Of course most of your employees/customers didn’t know your links with Terror. Of course someone else would have done this in your place. Of course our offensive actions are totally illegal (like yours when you support Terror). But according to us, these reasons are not good reasons. The countdown is already running. It’s too late. You have the choice between living, or dying with honors in the family of people who helped terrorists. You will be our first public example of cyber-destruction, as others already changed their minds. Be smart. Choose life.

And now a message to Dahabshiil customers: if you have money in this bank, if you are a customer of this bank, if you use this bank to transfer money from a country to another, and even if you are not a terrorist, we will let you less than 2 months before we either publish your personal information (passport, ID card, postal address, phone, email, etc), or we destroy your account by moving your money elsewhere, which will not be complex. As an example, we already shared this kind of information, as a proof of capability. Less than 2 months. After that, don’t cry if you lost your money at Dahabshiil, even if they told your that everything was under control (lulz), that they were able to clean their systems (lulz), etc. So, just take your money out of Dahabshiil now (!), and leave them behind you, before the destruction of this unofficial financial support for terrorists. First casualty of war is innocence. Be smart. Choose life.

And now a message to people in the same situation than Dahabshiil: If you are working with terrorists, if you are helping them, if you are linked to them, we will find you, and you will also be destroyed by our cyber-team, sooner or later. There is no place for you on earth. No place for you on Internet. No place for hate. Make love. Make kids. Be smart. Choose life.

We are Anonymous. We are Legion. We do not forgive. We do not forget. Expect us

Anon iWot Team (Internet War On Terror)

Bonus: This is really sad to see that some companies helped Dahabshiil after our intrusions (sometimes from Europe, etc). We won’t reveal the names of these IT Security workers, cause we understood that they just wanted to make money. But, as a last advice for them and their family, thanks to think twice the next time you will help Dahabshiil and terrorists. You are helping people who helped Al-Qaeda, like many other unscrupulous Islamic banks that helped at laundering kind of donations. We know you. You are not anon anymore. *We are Anonymous.*

Credits: though we will hide the identity of the people who helped us, we will at least share our thanks to their organizations, for those who accepted it. So, many many thanks to people from Iomart (!), from Vizada and from Somtel. Some of them accepted to share technical stuff (passwords, remote access, etc) as they do follow our spirit and our values against Terror. *We are legion.*

Contacts: no need to answer to this email address, as it’s not ours. If you want to meet us, as always we’ll be at Defcon soon, and we hope that there will be a special prize for Dahabshiil, though it’s a bit late to propose them to the Powney Awards. We do believe that being an international bank, with really lame security, fake official answers, and real links with terrorists to kill people in Africa, Europe or America (Al-Qaeda), should bring them to a special prize. They deserve it. *We do not forget.*

Future: if you want to participate, just share your thoughts or ideas of targets on Internet with the official related proofs showing links with terrorists. Like any skilled hackers, we can have remote access anywhere on earth (gov, telco, comp, etc) as the current IT Security community is just selling dreams and fake products. If you like our values, thanks to support Anonymous iWot (internet War on terror) and put tags like #anoniwot2012 so that we can find your list of targets, your messages, your help, your ideas, etc. You cannot contact us directly, so, please shout enough so that we can hear you. You can just share message to our teams on public spaces, and we’ll read them. Before that, if you enjoyed our specific actions against terrorists in Somalia, thanks to really show your support about this Somaleaks operation, with the tag #somaleaks and just wait, as many other places might burn sooner or later. *Expect us.* –DATA Dump  http://www.animegist.com/old//Somaleaks/

07/5/12

The Deep Dark Web -Book

gAtO sAy -mEoW you all- we have a new book coming out soon “The Deep Dark Web” and just wanted to write this as the foreword for the book, I thought it was interesting …//looking for peer review of book…write us

This book is to inform you about “The Deep Dark Web”. We hear that it’s a bad place full of crooks and hackers, but it is more a place were you have total anonymity as an online-user and yes there are ugly places in the dark web but it’s a small part of it. What it really is all about it’s freedom of expression, freedom of speech worldwide, supported by “us/we” the users of the network. It’s not controlled by any government, but blocked by a few like Syria, Iran, Ethiopia, China to name a few governments that want to deny their own people free access to information, to speak freely about their grievances and unite to tear down there walls of oppression.

Pierluigi and I (gAtO) share a passion for cyber security we write different blogs Pierluigi has http://securityaffairs.co/wordpress/ and my site is uscyberlabs.com . We also write at other blogs and print media. We did’nt know it at the time but, we were writing cyber history as the 2011- 2012 cyber explosion took off we were at ground zero writing about Stuxnet, HBGrays, the LulzPirates, Anonymous but the Arab Spring was an awaking :

The recent revolution in Egypt that ended the autocratic presidency of Hosni Mubarak was a modern example of successful nonviolent resistance. Social Media technologies provided a useful tool for the young activist to orchestrate this revolution. However the repressive Mubarak regime prosecuted many activists and censored a number of websites. This made their activities precarious, making it necessary for activists to hide their identity on the Internet. The anonymity software Tor was a tool used by some bloggers, journalists and online activists to protect their identity and to practice free speech.

Today we have lot’s of anonymity communication tools I2P, Freenet, Gnunet and Tor to name a few. Why did the TorProject.org Tor-.onion network become the facto application to get free, private, anonymized Internet access. My conclusion is it’s humble beginnings with “Naval Research Project & DARPA (Defense Advanced Research Project Agency) ” sponsored, maybe you heard of DARPA they kinda created the Internet a long time ago. The government wanted to have a communication secure media that would piggy-bak on the establish Internet. From my point of view when they saw how good this worked the government used it to allow it’s agents to quietly use the network for CIA covert operations (just to name a few alphabet soup government agencies that use it). For example a branch of the U.S. Navy uses Tor for open source intelligence gathering, and one of its teams used Tor while deployed in the Middle East recently. Law enforcement uses Tor for visiting or surveilling web sites without leaving government IP addresses in their web logs, and for security during sting operations.

Journalist got a hold of this tool and they too were able to file reports before governments agents censored their interviews and film footage. The EFF (Electronic Frontier Foundation) got a hold of the Tor-networks and promoted it to maintaining civil liberties online. When the common business executive visited a foreign country (like China know to monitor foreigners Internet access) they now had a way to securely connect to their corporate HQ data-center without being monitored and giving away IP (Intellectual Properties). The Tor-Network became to good and the bad guy’s moved in to keep their illegal business safer from the law. The Internet Cyber-criminal has used the claer-web since the start so of course they went over to the Tor-.onion network because it works if you use it right and keeps you anonymous online.

With all this happening and the “Year of the Hack 2011” you can see why security geeks like Pierluigi and I became intrigued with this subject and we teamed up to write this manuscript hoping to answer some of the questions our friends, and peers were asking us about this mysterious hidden world call the deep dark web. We outlined a table of content and started to write about it in our blogs and the story unfolds from here to you. We hope to educate you on how this network works without too much geek talk (ok just a little). We cover the cyber criminals and their ecosystem we cover the financial currency (bitCoins) that is replacing fiat currencies all over the world during this unstable financial times. We tried to cover all the good , the bad and the ugly of the .onion network. We hope it will answer some of your questions but I am sure that more question will come up so feel free to come to our websites and give us a shout and ask your questions about the deep dark web…. - gAtO oUT 

06/27/12

E-Commerce in the Black Market

gAtO hAs - found that e-commerce in the Black Market in the Tor-onion network is a little different than e-commerce in the clear web. Places like the Silk Road that deal with illegal drugs and other black market marketplaces have a lot to think about when they do business and the customers of these services have similar problems that can open them up to being caught and prosecuted. There a few thing that we must examine to understand e-commerce in the deep dark web. Once again gAtO does not recommend doing business with the black market but from a technical and SE view of how these transactions happened we may learn something. I have learned that China,Iran and Syria look for Tor traffic because of the fingerprint of the traffic stream – Tor traffic is padded to 512 byte size packets, normal VPN is not. But we know that the Tor-Project team is working on new and better ways to hide Tor fingerprint so everything is evoling.

Here are a few notes I found that makes you think – mAyBe sI-nO:

Conceal your membership (VERY IMPORTANT FOR VENDORS)

Using Tor by itself is not enough to protect you, particularly if you are a vendor. Membership revealment attacks combined with rough geolocation intelligence can lead to a compromise! The gist of a membership revealment attack is easy to understand. The attacker merely determines everyone who is connecting to a particular network, even if they are incapable of determining where the traffic being sent through the network is destined for. Tor does a good job of preventing an attacker who can see exit traffic from following the stream back to your location. Unfortunately, if you ship product the attacker can determine your rough geolocation merely by determining where you ship product from. If the attacker already knows your rough geolocation and they are capable of doing a membership revealment attack to determine who all in your area is connected to Tor, they can likely narrow down your possible identity to a very small set size, possibly even a set size of one.

This is not likely to be useful for evidence but it will provide strong intelligence. Intelligence is the first step to gathering evidence. The attacker may put everyone in your area who they detect are connecting to the Tor network under meatspace surveillance looking for evidence of drug trafficking activity. For this reason it is highly important that you protect yourself from membership revealment attacks!

Membership revealment attacks are less a worry for customers (provided financiall intelligence is properly countered to avoid an attacker finding rough customer geolocations!) than they are for vendors. There are a few reasons why this is true. First of all a customer is likely to reveal more about their identity when they place an order than the attacker will be able to determine with a geolocation + membership revealment attack. Secondly, the vendors allowed to operate on Open Source have been highly screened to significantly reduce the probability that any of them are federal agents, but the customers on Open Source are not only anonymous but they are also not screened at all. Third of all, the organizational structure reduces the risk for customers; a customer may work with a few vendors but each vendor is likely to be working with hundreds or thousands of customers. Customers sourcing from Open Source are at minimal risk even if they have products delivered directly to there own residence, vendors working on Open Source at particularly vulnerable to membership revealment attacks due to the open nature of the site.

The primary concern for customers is that they load finances anonymously and the vendor decentralizes their financial network. If a vendor is using a star network (centralized) financial topology there is a risk that an attacker could map out the geographic locations where customers loaded funds. After determining where funding was loaded the attackers could do anonymizer membership revealment attacks in an area around the load point and filter out everyone who is not using an anonymizer. This will likely leave the customer and few others. The attacker may even be able to compare CCTV footage of the load to the users of anonymizers in the area and look for a facial recognition match. To counter this it is important for customers to make use of good financial counter intelligence techniques (E-currency layering being one). Customers may also choose to utilize transients by paying them a fee to load currency, this way the customer avoids being on CCTV at any point. If vendors decentralize funding points (ditch the star network topology) customers will be strongly protected from such attacks, however it is impossible for a customer to ensure that a vendor is using a 1:1 customer to account/pseudonym identification ratio.

There are several ways you can protect yourself from a membership revealment attack, if you are a vendor it would be foolish to not take one of these countermeasures. The primary way to protect from a membership revealment attack is to make sure you do not enter traffic through the same network you exit traffic through. As all traffic to Open Source ‘exits’ through the Tor network, entering your traffic through a VPN first will reduce your vulnerability to membership revealment attacks. The attacker will have to determine who all in your area uses any anonymizing technology and put all of them under meatspace surveillance, there are likely to be far more people in your area using some sort of proxy system than there are people using Tor in particular. This will substantially increase the cost of putting all ‘potential targets’ under surveillance.

Using a VPN is helpful but it is not the most ideal solution. Your crowd space against a membership revealment attack will increase but perhaps not by much depending on the particular area you work out of. Also, a particularly skilled attacker may be able to determine you are using a VPN to connect to Tor by fingerprinting traffic streams. Tor traffic is padded to 512 byte size packets, normal VPN traffic is not. By filtering for 512 byte streams, an attacker can determine who all is using Tor in a given area. VPN’s protect from IP routing based membership revealment attacks but not from traffic fingerprinting membership revealment attacks. However, it is less likely that an attacker will be able to do a traffic fingerprinting membership revealment attack. The Chinese intelligence services apparently are still using IP address based attacks to block access to the Tor network. This is not nearly as effective as traffic fingerprinting based attacks. This could be an indication that traffic fingerprinting membership revealment attacks are more difficult to carry out (likely), however it could also be due to a lack of skill on the part of Chinas intelligence services. It could also be that China is not particularly interested in blocking/detecting all Tor traffic and IP address based attacks meet their requirements.

A better option than using a VPN would be to set up a private VPS and then enter all of your Tor traffic through this. Doing this will make you much more resistant to IP address based membership revealment attacks because now the attacker will not even be able to narrow you down to all people in your area using any anonymity technology. This is still weak to traffic fingerprinting membership revealment attacks!

Perhaps the best option to avoid membership revealment attacks is to use open or cracked WiFi from a different location + Tor every single time you connect. You could even use open Wifi + VPN/VPS + Tor for very high security from membership revealment attacks. Using random (not your neighbors) open/cracked WiFi greatly increaces your resistance to a wide variety of identity revealing attacks. An attacker can still do membership revealment attacks on users of open WiFi but they can no longer gain useful intelligence from the attack. If they detect that an open WiFi connection unrelated to you is using Tor it can not be used to put you under meatspace surveillance unless they manage to identify you (facial recognition from CCTV cameras, etc).

If you are operating as part of a group you can avoid membership revealment attacks via smart organizational policy. The person responsible for communicating with customers should be different from the person shipping orders. Now the customers are incapable of determining where your actual rough geolocation is because product is sent from a different geographic area than you communicate from. Your shipper should be aware that they will potentially come under scrutiny via a geolocation + membership revealment attack, especially if they use Tor to enter traffic.

Another option is to configure Tor to use a bridge. Tor bridges are designed to allow people in nations such as China the ability to connect to the Tor network. China uses IP address based blocking to prevent users from connecting to known Tor nodes. Bridges are Tor entry guards that are not publicly listed and have a limited distribution mechanism. You can get some Tor bridge IP addresses from the Tor website. We do not suggest you use Tor bridges because they replace your entry guard and they are under crowded. This will lead to a lot less multiplexing on your Tor circuit and can hurt your anonymity in other ways, although it will indeed offer some level of protection from membership revealment attacks. China has managed to detect about 80% of Tor bridges, it is likely that NSA knows all of them. Police agencies in the West are probably not yet particularly worried about locating bridge nodes but they can probably do so with near the same accuracy as China. In our opinion it is not smart to rely on a Tor bridge to protect you from membership revealment attacks in most cases.

Step Four: Know how to do safe product transfer, handle finances safe

Note: Although customers sourcing from Open Source are encouraged to take the best security measures they can, it is not likely required for them to utilize advanced operational security regarding mail (such as fake ID boxes, tactical pick utechniques, etc). Because the vendors allowed to be listed here have been highly screened it is likely safe for customers to have product delivered directly to their homes. If you only work with highly trusted and trusted vendors your biggest concern will be a package being intercepted!

 

Online Verification Procedures
Over the years, I’ve come across dozens of procedure lists for top-tier merchants regarding online transations and fraud reduction. I’ll detail several companies verification procedures below.

While most virtual carders are aware of the various procedures in place to verify orders placed online, few actually understand the implementation of fraud scoring, and the order in which these verification methods are used.
The Risk Management Toolkit

  • AVS
  • CVV
  • IP/GEO/BIN
  • Cardholder Authentication (VbV/MSC)
  • Phone Verifications
  • Manual Order Reviews
  • Chargebacks & Representments
  • PCI Compliance & Data Security

 

AVS – Address Verification Service

How It Works

  • Provides a Match or Non-Match Result for only the Billing Street # and Billing Zip Code… not the actual address. (i.e. “1234 Test Street” is parsed into “1234” just the same as “1234 Wrong Way” would be).

Implementation

  • Available on any Internet merchant account and virtually any Payment Gateway.
  • Most gateways provide an AVS configuration area where you can specify whether you want to automatically“decline” (i.e. do not settle) an authorization that has an AVS mis-match or non-match.

Benefits

  • Easy to implement Limitations
  • Works only for U.S., CND, U.K. cardholders so this does not help you scrub most international transactions.
  • A growing % of compromised credit cards – especially those obtained through inside jobs or hacked databases– will also contain the necessary information to provide a valid AVS match result.

Recommendation

  • If you handle a mix of int’l and U.S. sales, you will want consider scrubbing with AVS on the U.S. transactions but do NOT scrub via AVS for any international transactions as they will always fail. AVS should not beconsidered a primary means of verifying the validity of a transaction. Nearly 20% of the fraud can potentially be eliminated by scrubbing “Non-Matched” AVS match results.

 

CVV – Card Verification Value

How It Works

  • A service with many names – CVV2, CVC2, CID – but the premise is the same for all.
  • Provides a Match or Non-Match Result for the 3-digit or 4-digit number embossed on the back of the cardholder’s card. The CVV is NOT generally encoded on the magnetic stripe and therefore is less likely to be captured as part of a card skimming tactic.

Implementation

  • Available on any Internet merchant account and virtually any Payment Gateway.
  • Most gateways provide an CVV configuration area where you can specify whether you want to automatically “decline” (i.e. do notsettle) an authorization that has an CVV non-match or non-entry.

Benefits

  • Works for virtually ALL cardholder accounts – both U.S. and international.
  • There is no valid reason why a legitimate cardholder, in possession of the card, would not be able to enter a 100% matching numberfor this.
  • Merchants are not allowed to store CVV and as such the CVV # is less vulnerable than the data used for AVS.

Limitations

  • CVV data can only be used for a real-time transaction. CVV data can not be stored and therefore can not be utilized for Recurring Transactions.

Recommendation

  • CVV is a recommended service to utilize for ALL initial transactions processed. Based on our internal charge-back analysis, merchants can reduce their fraud ratesby as much as 70% by simply requiring a matching CVV result.

 

IP/GEO/BIN Scrubbing

How It Works

  • Compares the IP address of the customer purchasing with their stated geographic location (i.e. why is the customer from California ordering from Europe?)
  • Compares the BIN # (first 6 digits) of the credit card with the IP or stated geographic location of the customer (i.e. the customer isusing an US-issued credit card but they are from Europe?)
  • Based on the IP and BIN # and other customer-inputted data, a vast amount of information can be returned on the transaction.

Implementation

  • Custom direct integration into a service such as MaxMind.com
  • Use an existing integration that is part of a Shopping Cart such as X-Cart, LiteCommerce, osCommerce, ZenCart,ASPDotNetStorefront.
  • Use an existing integration that is part of a Billing System such as WHMCompleteSolution, ClientExec or Ubersmith.

•Use an existing integration that is part of a Payment Gateway such as the Quantum Payment Gateway.

Benefits

  • Fast, Cost Effective and Non-Intrusive
  • Provides merchants with an excellent “do the pieces fit consistently?” analysis.
  • Can block up to 89% of all fraud if properly implemented

Limitations

  • Generally not reliable for AOL users due to the way that AOL routes its traffic (AOL users require a merchant-specific approach)
  • Proxy database is always in a real-time process of being updated as new proxies open up.

Recommendation

  • IP/GEO/BIN fraud scores should be used in the order evaluation process more as a means of flagging transactions as “high risk” formore intensive scrubbing vs. being an outright decline.

Examples of what IP Geo-Location can tell you:

YELLOW ALERTS

  • Free E-mail Address: is the user ordering from a free e-mail address?
  • Customer Phone #: does the customer phone # match the user’s billing location? (Only for U.S.)
  • BIN Country Match: does the BIN # from the card match the country the user states they are in?
  • BIN Issuing Bank Name: does the user’s inputted name for the bank match the database for that BIN?
  • BIN Phone Match: does the customer service phone # given by the user match the database for that BIN?

RED ALERTS

  • Country Match: does the country that the user is ordering from match where they state they are ordering from?
  • High Risk Country: is the user ordering from one of the designated high risk countries?
  • Anonymous Proxy & Proxy Score: what is the likelihood that the user is utilizing an anonymous proxy?
  • Carder E-mail: is the user ordering from an e-mail address that has been used for fraudulent orders?
  • High Risk Username/Passwords: is the user utilizing a username or password used previously for fraud?
  • Ship Forwarding Address: is the user specifying a known drop shipping address

IP/GEO/BIN Scrubbing (Continued)

Open/Anonymous Proxies: an open proxy is often a compromised “zombie” computer running a proxy service that was installed by a computer virus or hacker. The computer is then used to commit credit card fraud or other illegal activity. In some circumstances, an open proxy may be a legitimate anonymizing service that is simply recycling its IP addresses. Detecting anonymous proxies is always an on going battle as new ones pop up and may remain undetected for some time.

26% of orders placed with from open proxies on the MaxMind min Fraud service ended up being fraudulent. Extra verification steps are strongly recommended for any transaction originating from anopen/anonymous proxy.

High-Risk Countries: these are countries that have a disproportionate amount of fraudulent orders, specificallyEgypt, Ghana, Indonesia, Lebanon, Macedonia, Morocco,Nigeria, Pakistan, Romania, Serbia and Montenegro, Ukraine and Vietnam. 32% of orders placed through the MaxMind min Fraud service from high-risk countries were fraudulent. Extra verification steps should be required for any transaction originating from a high risk country.

Country Mismatch: this takes place when the IP geolocation country of the customer does not match their billing country. 21% of orders placed with a country mismatch on the MaxMind m******* service ended up being fraudulent. Extra verification steps are recommended for any transaction with a country mismatch.

Results that speak for themselves:

ChangeIP – is a DNS and domain name registration provider. The company provides free and custom Dynamic DNS services to more than 50,000 users. Before implementing MaxMind, ChangeIP was losing as much as $1,000 per month because it sold instantly delivered digital goods and could not recover the losses if the purchase turned out to be fraudulent. After implementing MaxMind, losses were reduced by 90%.

MeccaHosting – is a Web hosting company based in Colorado. Since integrating MaxMind, Mecca Hosting has not received a single chargeback. On average, 12-15 fraudulent orders pass through the in-house checks each month but are flagged by MaxMind. Over the last 5 months, this has saved MeccaHosting atleast 60 chargebacks and $6,000 in unnecessary costs.

Red Fox UK – is a Web hosting provider and software development company based in the UK which offers solutions for smalland medium sized businesses all over the world. By using MaxMind, Red Fox UK was able to increase its revenue by 4% while reducing its chargebacks by 90%.

365 Inc. – is a digital media and e-tailer specializing in soccer & rugby with a large international customer base that processes over 10,000 transactions per month. By integrating MaxMind, chargebacks were reduced byover 96% from more than $10,000 per month to less than $500 per month. At this point, most charge backs are general order disputes as opposed to fraud.

Whew. A lot of editing. I’ll post the remainder in a bit.

 

 

Online Verification Procedures
Over the years, I’ve come across dozens of procedure lists for top-tier merchants regarding online transactions and fraud reduction. I’ll detail several companies verification procedures below.

While most virtual carders are aware of the various procedures in place to verify orders placed online, few actually understand the implementation of fraud scoring, and the order in which these verification methods are used.
The Risk Management Toolkit

  • AVS
  • CVV
  • IP/GEO/BIN
  • Cardholder Authentication (VbV/MSC)
  • Phone Verifications
  • Manual Order Reviews
  • Chargebacks & Representments
  • PCI Compliance & Data Security

 

AVS – Address Verification Service

How It Works

  • Provides a Match or Non-Match Result for only the Billing Street # and Billing Zip Code… not the actual address. (i.e. “1234 Test Street” is parsed into “1234” just the same as “1234 Wrong Way” would be).

Implementation

  • Available on any Internet merchant account and virtually any Payment Gateway.
  • Most gateways provide an AVS configuration area where you can specify whether you want to automatically“decline” (i.e. do not settle) an authorization that has an AVS mis-match or non-match.

Benefits

  • Easy to implement Limitations
  • Works only for U.S., CND, U.K. cardholders so this does not help you scrub most international transactions.
  • A growing % of compromised credit cards – especially those obtained through inside jobs or hacked databases– will also contain the necessary information to provide a valid AVS match result.

Recommendation

  • If you handle a mix of int’l and U.S. sales, you will want consider scrubbing with AVS on the U.S. transactions but do NOT scrub via AVS for any international transactions as they will always fail. AVS should not beconsidered a primary means of verifying the validity of a transaction. Nearly 20% of the fraud can potentially be eliminated by scrubbing “Non-Matched” AVS match results.

 

CVV – Card Verification Value

How It Works

  • A service with many names – CVV2, CVC2, CID – but the premise is the same for all.
  • Provides a Match or Non-Match Result for the 3-digit or 4-digit number embossed on the back of the cardholder’s card. The CVV is NOT generally encoded on the magnetic stripe and therefore is less likely to be captured as part of a card skimming tactic.

Implementation

  • Available on any Internet merchant account and virtually any Payment Gateway.
  • Most gateways provide an CVV configuration area where you can specify whether you want to automatically “decline” (i.e. do notsettle) an authorization that has an CVV non-match or non-entry.

Benefits

  • Works for virtually ALL cardholder accounts – both U.S. and international.
  • There is no valid reason why a legitimate cardholder, in possession of the card, would not be able to enter a 100% matching numberfor this.
  • Merchants are not allowed to store CVV and as such the CVV # is less vulnerable than the data used for AVS.

Limitations

  • CVV data can only be used for a real-time transaction. CVV data can not be stored and therefore can not be utilized for Recurring Transactions.

Recommendation

  • CVV is a recommended service to utilize for ALL initial transactions processed. Based on our internal charge-back analysis, merchants can reduce their fraud ratesby as much as 70% by simply requiring a matching CVV result.

 

IP/GEO/BIN Scrubbing

How It Works

  • Compares the IP address of the customer purchasing with their stated geographic location (i.e. why is the customer from California ordering from Europe?)
  • Compares the BIN # (first 6 digits) of the credit card with the IP or stated geographic location of the customer (i.e. the customer isusing an US-issued credit card but they are from Europe?)
  • Based on the IP and BIN # and other customer-inputted data, a vast amount of information can be returned on the transaction.

Implementation

  • Custom direct integration into a service such as MaxMind.com
  • Use an existing integration that is part of a Shopping Cart such as X-Cart, LiteCommerce, osCommerce, ZenCart,ASPDotNetStorefront.
  • Use an existing integration that is part of a Billing System such as WHMCompleteSolution, ClientExec or Ubersmith.

•Use an existing integration that is part of a Payment Gateway such as the Quantum Payment Gateway.

Benefits

  • Fast, Cost Effective and Non-Intrusive
  • Provides merchants with an excellent “do the pieces fit consistently?” analysis.
  • Can block up to 89% of all fraud if properly implemented

Limitations

  • Generally not reliable for AOL users due to the way that AOL routes its traffic (AOL users require a merchant-specific approach)
  • Proxy database is always in a real-time process of being updated as new proxies open up.

Recommendation

  • IP/GEO/BIN fraud scores should be used in the order evaluation process more as a means of flagging transactions as “high risk” formore intensive scrubbing vs. being an outright decline.

Examples of what IP Geo-Location can tell you:

YELLOW ALERTS

  • Free E-mail Address: is the user ordering from a free e-mail address?
  • Customer Phone #: does the customer phone # match the user’s billing location? (Only for U.S.)
  • BIN Country Match: does the BIN # from the card match the country the user states they are in?
  • BIN Issuing Bank Name: does the user’s inputted name for the bank match the database for that BIN?
  • BIN Phone Match: does the customer service phone # given by the user match the database for that BIN?

RED ALERTS

  • Country Match: does the country that the user is ordering from match where they state they are ordering from?
  • High Risk Country: is the user ordering from one of the designated high risk countries?
  • Anonymous Proxy & Proxy Score: what is the likelihood that the user is utilizing an anonymous proxy?
  • Carder E-mail: is the user ordering from an e-mail address that has been used for fraudulent orders?
  • High Risk Username/Passwords: is the user utilizing a username or password used previously for fraud?
  • Ship Forwarding Address: is the user specifying a known drop shipping address

IP/GEO/BIN Scrubbing (Continued)

Open/Anonymous Proxies: an open proxy is often a compromised “zombie” computer running a proxy service that was installed by a computer virus or hacker. The computer is then used to commit credit card fraud or other illegal activity. In some circumstances, an open proxy may be a legitimate anonymizing service that is simply recycling its IP addresses. Detecting anonymous proxies is always an on going battle as new ones pop up and may remain undetected for some time.

26% of orders placed with from open proxies on the MaxMind min Fraud service ended up being fraudulent. Extra verification steps are strongly recommended for any transaction originating from an open/anonymous proxy.

High-Risk Countries: these are countries that have a disproportionate amount of fraudulent orders, specificallyEgypt, Ghana, Indonesia, Lebanon, Macedonia, Morocco,Nigeria, Pakistan, Romania, Serbia and Montenegro, Ukraine and Vietnam. 32% of orders placed through the MaxMind min Fraud service from high-risk countries were fraudulent. Extra verification steps should be required for any transaction originating from a high risk country.

Country Mismatch: this takes place when the IP geolocation country of the customer does not match their billing country. 21% of orders placed with a country mismatch on the MaxMind m******* service ended up being fraudulent. Extra verification steps are recommended for any transaction with a country mismatch.

Results that speak for themselves:

ChangeIP – is a DNS and domain name registration provider. The company provides free and custom Dynamic DNS services to more than 50,000 users. Before implementing MaxMind, ChangeIP was losing as much as $1,000 per month because it sold instantly delivered digital goods and could not recover the losses if the purchase turned out to be fraudulent. After implementing MaxMind, losses were reduced by 90%.

MeccaHosting – is a Web hosting company based in Colorado. Since integrating MaxMind, Mecca Hosting has not received a single chargeback. On average, 12-15 fraudulent orders pass through the in-house checks each month but are flagged by MaxMind. Over the last 5 months, this has saved MeccaHosting atleast 60 chargebacks and $6,000 in unnecessary costs.

Red Fox UK – is a Web hosting provider and software development company based in the UK which offers solutions for smalland medium sized businesses all over the world. By using MaxMind, Red Fox UK was able to increase its revenue by 4% while reducing its chargebacks by 90%.

365 Inc. – is a digital media and e-tailer specializing in soccer & rugby with a large international customer base that processes over 10,000 transactions per month. By integrating MaxMind, chargebacks were reduced byover 96% from more than $10,000 per month to less than $500 per month. At this point, most charge backs are general order disputes as opposed to fraud.

This is only a small part of the e-commerce as you can see there are lot’s of opinions on how to do business in the Black market and understanding how it’s done can help us to figure out solution for legit business in the future. - gATO oUt

06/25/12

System D- Bitcoin’s Underground Economy

bitcoins - system D gatomalo2

In Crypto-curency we trust. – I hate math but I like money – mAyBe sI-nO

gATO wAs- reading Forbes -Jon Matonis article about the shadow economy and bitcoins. The Bitcoin market is $10 Trillion and growing the crypto-currency is surpassing everyones imagination and why is that. System D is the answer, what is System D? It is a shorthand term that refers to a manner of responding to challenges that requires one to have the ability to think fast, to adapt, and to improvise when getting a job done. This can be applied to hackers, Anonymous, hacktivist and of course the Tor-Onion network.  They are all System D and growing because of it.

System D is a slang phrase pirated from French-speaking Africa and the Caribbean. The French have a word that they often use to describe particularly effective and motivated people. They call them débrouillards. To say a man is a débrouillard is to tell people how resourceful and ingenious he is. The former French colonies have sculpted this word to their own social and economic reality. They say that inventive, self-starting, entrepreneurial merchants who are doing business on their own, without registering or being regulated by the bureaucracy and, for the most part, without paying taxes, are part of “l’economie de la débrouillardise.” Or, sweetened for street use, “Systeme D.” This essentially translates as the ingenuity economy, the economy of improvisation and self-reliance, the do-it-yourself, or DIY, economy.

Essentially, bitcoin is the ‘System D’ of currencies — global, decentralized, and non-state sanctioned. In todays world were Greece, Spain and the U.S economy are falling apart we now have a currency that is not controlled by one governments it’s control by the people, and the powers that be the bankers are really pissed off.  This is why the “deep dark web” is being vilified. You hear about Silk Roads selling drugs and all kind of scary thing but in reality the black market is only a small portion of the dark web, but Bitcoins are a big part in it’s e-commerce and it’s not traceable that the bad part and the good part. You at home can set up a Bitcoin miner on your computer and start mining Bitcoins at home with a spare computer. It’s like a solar power cell on your roof top, or a windmill you can be in control of things again.

But the real issue is control! The bankers have no control of this new emerging economy. The 1% fear that if we the people start using this new currency we will diminish their power, their wealth and they can’t have that. Bitcoins are barley 3 years old and you hear everywhere that only criminals use it, it’s part of the bad guy’s and another fact that escapes people since it’s a crypto thing and we are talking about MATH they can only generate bit coins till 2030 so this is not the solution for a currency but at least we know where the end lies and we can make it better when nobody is in control.

History tell’s us that the robber (banker) barons use the same trick to spread rumors and crash the stock market in the early 1920, then they put in laws to get every one to sell their gold so they control it. We did have a currency based on Gold but they wanted this power and they payed the politicians off and got all our gold. Now they see this new currency and since it’s not under their control they want you to think it’s a bad thing.

Now a $10 Trillion dollar market will get these bankers up and ready for bear if they want to keep their power based and scaring the masses will not work when you can buy Bitcoins at any 7/11 or WallMart you can see that smart merchants are now accepting Bitcoins for the goods and services these early adopters will see themselves grow financially and hedge their bets on what is a winning worldwide currency. Governments will also go after this new markets because bankers have politicians in their pockets but this tidal wave of the new fiat currency will become de-facto very soon. Just in the last few months it has gone from $4.25 USD to today 6/25/2012 $6.28 according to mtgox.com one of the new traders in this new economy. That’s about about a %30 percent increase—/ now that’s a better rate than anyone can give you on your investmentCa$hing -mEoW- mEoW gAtO lIke that….//

So what does it mean to the average person well if you have Bitcoins in your portfolio you will make a killing as Bitcoins are expected to go to almost $30 USD by Christmas time 2012. gAtO predicts maybe $20-25 by the end of year but I lost my tail in the stock market in 2008 what do I know. Well I know that In that time frame I had no control of the market and today because I am active in this field of Cyberspace and cryptology I can see the patterns and I trust Bitcoins better than USD or EUROs. ViVa System D: – gAtO oUt

Read more Forbes -Could Bitcoin Become the Currency of System D?http://www.forbes.com/sites/jonmatonis/2012/03/19/could-bitcoin-become-the-currency-of-system-d/