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Fraud schemes exposed

Explore the latest scams and fraud tactics uncovered by Sift’s Trust and Safety Architects.

The global Fraud Economy

Fraudsters have evolved from siloed attacks to a full-blown Fraud Economy—a sophisticated and interconnected network of cybercriminals looking to exploit online businesses.

Global fraud economy

Proxy Phantom: The anatomy of a fraud ring

In Q3 2021, the Sift data science team identified and blocked an attack coming from multiple large IP clusters (related groups of internet protocol addresses) across the Sift global network. This interactive visualization illustrates the fraud ring and how it used bots to commit sweeping, large-scale account takeover (ATO) attacks against e-commerce merchants all over the world.

Disclaimer: All personally identifiable information is simulated.

In Q3 2021, the Sift data science team identified and blocked an attack coming from multiple large IP clusters (related groups of internet protocol addresses) across the Sift global network. The video below illustrates the fraud ring and how it used bots to commit sweeping, large-scale account takeover (ATO) attacks against e-commerce merchants all over the world.

FRAUDSTER

TRANSACTION

CREDENTIALS

PAYMENT DETAILS

PROXY SERVER

Pig Butchering: The mechanics of the scam

Click through the timeline to see how the scam works.

Create phony profiles

Scammer creates dozens of phony profiles on dating apps

Swipe
right

Scammer matches with multiple victims

Switch platforms

Conversation moves to a private, encrypted messaging platform

Manipulate Emotionally

Scammer emotionally manipulates victim

Talk
crypto

Conversation turns to crypto investing

Pressure to invest

Scammer convinces victim to invest using fake crypto exchange

Show False Profit

Victim starts seeing false profit and is persuaded to invest more

Steal
Funds

Scammer takes money and ceases communication

Crypto Cashout: When fraudsters join forces

Click through the timeline to see how the scam works.

1

Fraudster A has access to stolen or illicitly-obtained funds.

2

Fraudster B takes over bank, crypto wallet, and crypto exchange accounts.

3

Fraudster A solicits on Telegram for combined bank and crypto account access. Fraudster B responds with offer to work together.

4

Fraudster A loads the stolen funds into Fraudster B's bank account. Fraudster B transfers the funds into stolen crypto exchange account or wallet.

5

Fraudster B withdraws the funds from the crypto wallet to an offline wallet. Fraudsters split the profits.

Q1 2023 Digital Trust & Safety Index: Payment fraud data and insights

Comprehensive fraud guides from Trust & Safety University

2022 Gartner® Market Guide for Online Fraud Detection

Read the report

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