Which statement defines payment fraud?

Which statement defines payment fraud?

• A. Makes use of a stolen payment method to make a purchase online
• B. Involves customer complaints about service
• C. Occurs when shipments are delayed
• D. Occurs when a merchant charges extra fees

Answer: (A)

Payment fraud happens when someone uses a stolen payment method to make a purchase without the cardholder’s permission. The statement describing using a stolen payment method online captures that unauthorized use, which is exactly what payment fraud is. The other statements concern service issues, shipping delays, or extra fees—things related to fulfillment or pricing, not unauthorized use of payment credentials. In practice, preventing this kind of fraud involves verification steps and risk checks to detect and block unauthorized charges.

Payment fraud happens when someone uses a stolen payment method to make a purchase without the cardholder’s permission. The statement describing using a stolen payment method online captures that unauthorized use, which is exactly what payment fraud is. The other statements concern service issues, shipping delays, or extra fees—things related to fulfillment or pricing, not unauthorized use of payment credentials. In practice, preventing this kind of fraud involves verification steps and risk checks to detect and block unauthorized charges.