What is an altered card?

An altered card refers specifically to a card that has had its information modified or changed with the intent to commit fraud. This can include alterations to the card number, expiration date, cardholder’s name, or security features that are meant to prevent counterfeiting. Fraudsters may change these details to make the card appear legitimate or to deceive merchants and payment processors during transactions.

The correct choice emphasizes the fraudulent aspect of the alteration, which directly ties into issues of identity theft, financial loss, and regulatory scrutiny within the financial industry. Understanding this concept is particularly important for those in the electronic transactions field, as it highlights the need for security measures to detect and prevent the use of altered cards in financial transactions. In contrast, cards linked to multiple accounts, cards with no financial value, and expired cards do not inherently involve manipulation of information for illegal gain and therefore do not match the definition of an altered card.