In today’s digital age, fraud has evolved into a sophisticated and organized industry. One of the most alarming developments is the emergence of "Fraud as a Service" (FaaS). This model, akin to legitimate software-as-a-service (SaaS) platforms, allows cybercriminals to purchase and deploy fraudulent tools (or entire toolkits!) with ease. As this underground economy grows, understanding FaaS is crucial for businesses looking to protect themselves from ever-increasing cyber threats.

What is Fraud as a Service?

Fraud as a Service (FaaS) is a business model where cybercriminals offer various illegal services and tools to other fraudsters. These services are often bundled and sold in online black markets, making it possible for individuals with minimal technical skills to carry out sophisticated fraud schemes. 

FaaS offerings can range from phishing kits and malware to stolen identities and credit card information that can mostly be found on dark web marketplaces or underground forums. 

 Some of the most widely used FaaS tools are: 

• App cloners help fraudsters create multiple clones of the same app on one device and then modify their source code to bypass existing security features. This is also one of the main tools used for promo abuse and referral bonus abuse on scale. 
• Digital injections help fraudsters bypass liveness checks in bulk by allowing the insertion of fake images or AI-generated images, allowing them to create thousands of fake accounts at one go. 
• Emulators or location spoofing tools can trick ride-hailing or food delivery apps into misjudging the distance traveled, helping fraudsters exploit the existing fare structures. 

The infrastructure that supports these activities is highly organized, with service providers offering customer support, updates, and even guarantees, much like legitimate businesses.  This commercialization of fraud has lowered the barriers to entry, leading to a deeper proliferation of cybercrime.

Why is 'Fraud as a Service' Dangerous?

The dangers posed by FaaS are multifaceted:

• Accessibility: These pre-packaged scams wrapped with a bow make advanced fraud tools accessible to a broader range of criminals. Even those without deep technical knowledge can now execute complex fraud schemes, leading to an increase in cybercrime activity, all they need is a computer with stable internet connection. And in the current modern world, even the mot remote towns have access to the Intenet. 
• Scale and Reach: With FaaS, cybercriminals can launch large-scale attacks that simultaneously target multiple organizations across different industries. This scalability can overwhelm even the most robust security systems. Apart from the most obvious industries like the financial industry that see the deepy damaging impact of these attacts, the eCommerce industry, ride hailing industry, food delivery industries etc are also ssufering because of the rampant promo abuse and referral bonus abuse made possible because of these FaaS dealings. 
• Impact: The financial and reputational damage caused by FaaS-fueled attacks can be devastating. Companies may face significant economic losses, while individuals may suffer from identity theft and other forms of fraud. The damages are not just financial but leave behind emotional scars. Not to mention, the entire algorithm on which most of these digital services are based gets screwed, ruining the experience for genuine customers and affecting the overall digital financial health of the economy. 

Methods of Operations

FaaS has evolved into a complex industry with various business models. Let's explore some of the most common ones:

• Product-based: This is the most traditional model where FaaS providers develop and sell tools, malware, or exploit kits. These products are often categorized by their functionality, such as phishing kits, carding tools, or ransomware. These tools allow fraudsters to conduct mass phishing attacks, create websites that send bulk emails to victims or even scraping and harvesting personal information at scale! 
• Rental Services: Instead of outright selling, FaaS providers offer their tools on a rental basis. This model is often used for more sophisticated tools or access to botnets.
• Affiliate Marketing: In this model, FaaS providers recruit affiliates to promote their services. Affiliates earn a commission for each customer they bring in.
• Subscription-based: Similar to legitimate SaaS platforms, FaaS providers offer subscription packages with varying levels of access and support.
• Custom Development: High-end FaaS providers offer custom-built tools tailored to specific client needs, often targeting high-value targets.

FaaS is an integral part of the cybercrime ecosystem. It connects various criminal actors and facilitates the division of labor. Here's a simplified breakdown:

• FaaS providers: Develop and sell the tools.
• Carders: Use stolen credit card information to make fraudulent purchases.
• Money mules: Act as intermediaries to launder stolen funds.
• Botnet operators: Rent out botnets for various criminal activities, including DDoS attacks and spam.
• Hacktivists: May use FaaS tools for political or social activism.
• Cyber espionage groups: Can leverage FaaS capabilities for intelligence gathering.

FaaS operates on a business model similar to that of SaaS companies:

• Subscription Models: Fraudsters can subscribe to different levels of service, from basic packages that offer simple tools to premium packages that include advanced capabilities and ongoing support.
• Customization: FaaS providers often offer customization options, allowing fraudsters to tailor their attacks to specific targets. This makes each attack unique, which, in turn, makes detection and prevention more difficult.
• Support and Updates: Just like legitimate SaaS providers, FaaS vendors offer ongoing support and regular updates to their tools, ensuring that their customers can continue to evade detection by security systems.

Bureau: Offering 'Fraud Prevention as a Service'

As fraudsters become more sophisticated, the need for advanced fraud prevention solutions has never been greater. Bureau steps up to this challenge by offering Fraud Prevention as a Service (FPaaS), designed to combat the ever-evolving threats posed by FaaS.

Bureau’s FPaaS leverages cutting-edge technology, including device intelligence, behavioral biometrics, and alternate data sources, to identify and neutralize fraudulent activities before they can cause harm.

Our solutions are designed to be adaptive, learning from each interaction to improve detection accuracy continuously. By analyzing a combination of hardware, software, and network data, Bureau can spot anomalies that signal potential fraud, ensuring that genuine users are protected while fraudulent activities are stopped in their tracks.

Conclusion

Fraud as a Service represents a significant threat to the security of businesses and individuals alike. As cybercriminals continue to innovate, organizations must stay ahead of the curve by adopting proactive fraud prevention measures. Bureau’s Fraud Prevention as a Service offers a robust solution to this growing problem, helping businesses safeguard their operations and maintain the trust of their customers. Now, more than ever, investing in security solutions that evolve as fast as the threats they’re designed to counter is essential.

‍