What does "carding" refer to in the context of financial crimes?

In the context of financial crimes, "carding" specifically refers to the practice of exploiting online stolen credit card information. This involves taking details such as card numbers, expiration dates, and security codes from compromised credit cards and using them to make unauthorized purchases or transactions over the internet. Criminals may utilize these stolen credentials to buy goods or services, often aiming to maximize their fraudulent activities before the original cardholder or financial institutions can intervene.

The other options describe various forms of financial fraud but do not accurately characterize "carding." Using counterfeit checks pertains to a different type of fraud that involves manufacturing or altering checks for illicit financial gain. Stealing physical credit cards relates to direct theft and unauthorized possession, which is distinct from the online exploitation of stolen card details. Buying stolen goods online focuses on the acquisition of items that have been obtained illegally, rather than committing fraud specifically through the manipulation of credit card information.