Fraud activity can include which of the following?

The correct answer focuses on transactions involving unauthorized use of cards. Fraud activity is typically characterized by actions that deceive or mislead in order to gain an unjust advantage, especially pertaining to financial transactions. When a transaction is made without the proper authorization, it is classified as a fraudulent activity because it represents the misuse of someone else's financial resources without their consent.

In the context of fraud, using someone else's card information without permission directly undermines the security protocols of financial institutions and can result in significant losses for consumers and businesses alike. This type of activity is a clear violation of trust and legal regulations surrounding credit and debit card usage.

Other options, while they may include elements that could be linked to transactions, do not inherently represent fraud. For instance, submitting legitimate transactions on behalf of customers or reporting a loss of funds correctly are actions that align with ethical and lawful practices. Offering refunds for legitimate purchases is also a standard business process that adheres to consumer rights and does not constitute fraud.