What characterizes a "Confirmed Fraud Transaction"?

A "Confirmed Fraud Transaction" is characterized by the fact that it involves a reported incident of a lost or stolen card. In this situation, the transaction has been verified and identified as fraudulent due to the unauthorized use of a cardholder's credentials. This confirmation typically comes from either the cardholder themselves, who reports their card as lost or stolen, or from the issuer's internal systems that detect suspicious activity.

Understanding this characteristic is crucial in the context of fraud prevention and risk management within the electronic payments industry. It helps organizations implement measures to monitor and react to fraudulent activities more effectively.

In contrast, a transaction involving a legitimate cardholder, one that has been authorized by the issuer, or one completed without any verification does not align with the definition of a confirmed fraud transaction, as these scenarios involve either authorized use or lack of verification, which do not fit the profile of confirmed fraud.