What is a common outcome of Bust-Out Card Fraud for the issuing bank?

The outcome related to Bust-Out Card Fraud that reflects the issuing bank's experience is the loss of funds and revenue. Bust-Out Card Fraud involves a scenario where fraudsters open credit card accounts, make purchases, and then disappear without paying. This leads to significant financial losses for the issuing bank, as they are unable to recover the funds spent by the fraudster before the account is closed.

This situation directly impacts the bank's revenue due to the unpaid debt as well as the cost of handling the fraud, including investigating the incident and dealing with potential chargebacks. The financial strain from such fraudulent activities can also lead to increased operational costs and the necessity to allocate resources for fraud prevention, further exacerbating the overall financial impact.

In essence, loss of funds and revenue encapsulates the bank's struggle to manage the aftermath of Bust-Out Card Fraud effectively, highlighting the seriousness of this type of fraud in the financial sector.