What is an example of cardholder fraud?

An example of cardholder fraud is making unauthorized purchases. This activity involves the cardholder using someone else's credit or debit card information without consent to complete transactions. Typically, this occurs when a fraudster gains access to the card details through various means, such as phishing, theft, or data breaches, and then uses that information to buy goods or services. This act directly harms the cardholder whose information has been compromised and is a clear breach of trust and legal boundaries in financial transactions.

Other scenarios, while related to card usage, do not fit the definition of fraud. Using an expired credit card, forgetting to pay a bill, or losing the card may reflect irresponsible behavior or negligence but do not involve the unauthorized use of another's financial information. This distinction helps clarify what constitutes cardholder fraud in terms of intentions and actions.