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

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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.

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Additional resources

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

Get the ebook

Comprehensive fraud guides from Trust & Safety University

Start learning

2022 Gartner® Market Guide for Online Fraud Detection

Read the report

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