What forms can cardholder fraud take?

Cardholder fraud encompasses a variety of fraudulent activities beyond just one type or instance. The correct choice highlights that fraudulent applications and unauthorized transactions are significant forms of cardholder fraud.

Fraudulent applications involve individuals applying for credit or debit cards using stolen identities or false information, which can lead to financial loss for the issuing bank, as they extend credit based on inaccurate or fake data. Unauthorized transactions refer to purchases made without the cardholder's consent, which can occur in various contexts, such as through identity theft where someone's payment information is misused.

In contrast, the other options limit the scope of cardholder fraud to specific instances, which does not represent the full spectrum of potential fraud scenarios. Fraud can manifest in numerous ways, including lost or stolen cards, counterfeit cards, and online transactions, but the comprehensive nature of option B correctly captures the essence of cardholder fraud as it addresses both the application process and transaction activities. This underscores the need for vigilance across various fronts to prevent and mitigate fraud in the payment sector.