What is 'magnetic-stripe fraud' associated with?

Magnetic-stripe fraud is specifically associated with the manipulation of card information stored on the magnetic stripe of payment cards. This type of fraud occurs when criminals re-encode or alter the magnetic stripe of a legitimate card using stolen information. By transferring the card data onto a blank magnetically encoded card, fraudsters can create a duplicate that they can use to make unauthorized transactions, often without the cardholder's knowledge.

In the context of the other choices, using prepaid cards for unauthorized transactions could involve different types of fraud not specifically tied to magnetic stripes. Stolen cards making in-person transactions typically refers to the use of physical cards in their existing form rather than manipulation of the stripe. Fraudulent withdrawals from ATMs may involve various fraud techniques, but they aren't limited to magnetic-stripe manipulation specifically. Understanding magnetic-stripe fraud highlights the importance of secure card data handling and the vulnerabilities associated with physical card transactions.