What Do Cyber Criminals Do with Stolen Credit Card Information?

Unless you’ve been living under a rock, you know that your stolen credit card information is a hot commodity for hackers. But what exactly do they do with it? With identity theft on the rise, understanding hackers’ motives and machinations is not just a matter of curiosity—it’s an essential step in protecting what’s ours.

This blog post peels back the curtain to reveal the reality that every piece of your personal data is a pawn in a grand if nefarious, scheme. We’ll discuss what hackers do with your stolen credit card information.

Types of Information Hackers Target

The first step in securing your digital identity is to understand what’s at risk. When hackers breach a system or pull off a phishing scam, they have a clear agenda. Here are some of the types of information most frequently targeted by cybercriminals.

Personal Identifiable Information (PII)

PII is the crown jewel of personal data. It includes your name, Social Security number, date of birth, and any other information that can be used to uniquely identify you. The implications of losing this data to hackers can be profound, potentially leading to identity theft and difficulties in restoring your credit and reputation.

Financial Data

Bank account details, stolen credit card information, and financial transactions are irresistible to hackers, who see them as direct gateways to cash. Once they have your financial data, they can orchestrate elaborate fraud schemes, leaving you to navigate the treacherous waters of chargebacks and compromised accounts.

Related: Why is Data Privacy Important?

Login Credentials

With your login details in hand, hackers can access your email, social media, and, worse, more sensitive accounts. Account takeovers are more than just an inconvenience—they can lead to further data breaches and complicate the process of reclaiming control over your digital identity.

Related: 8 Facts to Know About Suspicious Activity Login

Intellectual Property

Corporate espionage isn’t the sole domain of movies and television show plots. Businesses guard against theft of trade secrets, source code, and product plans to protect their competitive edge. Stolen data can reach rivals or markets, undoing years of innovation and effort.

What Hackers Do with Stolen Credit Card Information

With an understanding of what’s at stake, we turn to the next chilling question: what do hackers actually do with the treasure troves of data they take? 

Identity Theft

Your stolen PII can be used to create a new identity or take over existing ones, wreaking havoc on your credit history and financial stability. Victims of identity theft face a long, difficult road to recovery, often involving extensive paperwork, legal proceedings, and persistent stress as they work to clear their name.

Related: What to do if you are a Victim of Social Security Fraud

Financial Fraud

Armed with your financial data, hackers can commit a slew of fraudulent activities, including unauthorized transactions and the opening of new accounts in your name. The fallout is not just limited to financial losses, which can be substantial, but also the erosion of trust with financial institutions and lenders.

Data Breaches and Black Market Sales

Data breaches, where sensitive information of thousands or millions is stolen, can result in the mass sale of stolen data on the black market—a place where most commodities are illegal or unregulated. Here, your personal information may be for sale to the highest bidder for purposes that are as varied as they are nefarious.

Related: What is Dark Web Monitoring?

Ransomware Attacks

In a ransomware attack, hackers encrypt a victim’s data, rendering it inaccessible without a decryption key. The victim is then extorted for payment in exchange for the key. Ransomware attacks are uniquely terrifying in that they not only result in financial loss but they also create a sense of powerlessness and violation.

Impact on Individuals and Businesses

The repercussions of a successful hack go far beyond the initial shock of the breach. They can have a lasting impact on individuals and businesses alike, with consequences that are both immediate and far-reaching.

Financial Loss

Individuals with compromised accounts may face direct financial losses, and businesses risk fraud losses, non-compliance fines, and recovery costs.

Related: Is Identity Theft Protection Worth It?

Reputational Damage

Trust is a currency hard-won and easily lost. For individuals, especially in the age of social media, a compromised digital presence can shatter the trust of friends, peers, and employers. For businesses, a breach can lead to customer churn and damage to their hard-earned market reputation.

Legal Consequences

Data breaches frequently trigger legal requirements for reporting and remediation. In some cases, failure to protect customer data can result in lawsuits and fines, further compounding the financial implications of the breach.

Disruption of Operations

For businesses, the immediate operational disruptions of a cyber attack can be staggering. From a loss of productivity to the resource drain of managing a crisis, the attack can inflict a heavy toll on an organization’s ability to function.

Protecting Against Cyber Threats

Fearing the threat of a cyber attack is not productive; preparing for it is. Adopting proactive security measures significantly reduces the risk of cybercriminal attacks. Here’s how you can start fortifying your defenses against digital intrusion.

Strong Passwords and Two-Factor Authentication (2FA)

The importance of strong, unique passwords cannot be overstated. In addition to this, enabling two-factor authentication (2FA) adds an extra layer of security, making it significantly harder for hackers to breach your accounts, even if they manage to steal your credentials.

Regular Software Updates and Security Patches

Operating with outdated software is like leaving the front door of your digital house wide open. Regular updates with latest security patches are a simple yet effective way to stay protected.

Employee Training on Phishing Awareness

Human error remains one of the largest factors in successful cyber attacks (90% to get technical). Regular training helps employees spot and avoid phishing scams, crucial for protecting your sensitive information.

Related: What to Do if You Click on a Phishing Link

Data Encryption and Secure Networks

Encrypting data and securing networks, at home or work, is crucial for protecting information online for individuals and businesses alike.

Proactive Removal of Digital Footprint

Reducing your digital footprint by monitoring personal exposed information online lowers the risk of it falling into the wrong hands. 

💜Run a privacy scan with Hogo and request removal directly in the app → hogo.com 

Conclusion

By understanding what hackers aim to achieve with stolen information, we are better equipped to take action. Securing our digital presence with strong passwords and cybersecurity training protects us and fosters a digital world for all.

Remember, safeguarding your data is not a one-time event but an ongoing commitment. Continually remaining aware of new threats and adapting your defenses accordingly is a critical part of digital self-preservation. Staying ahead through proactive learning and adapting to hacker tactics protects our data and combats cybercrime.

Categorised in: Finance

This post was written by Staff Writer