What type of fraud is considered when the legitimate cardholder does not recognize a charge on their bank statement?

The case described involves a legitimate cardholder questioning a charge on their bank statement, which typically points towards what's known as "Friendly Fraud." This term represents a situation where a customer makes a purchase online and later disputes the charge, often claiming they did not authorize the transaction, even though they did.

Friendly fraud can occur for various reasons. The cardholder might forget the purchase, not recognize the merchant's name on the statement, or they may hope to get a refund while keeping the goods or services purchased. This type of fraud has become increasingly common in e-commerce due to the ease of disputing charges and the digital nature of transactions, where personal engagement with the service or product may be limited.

In contrast, the other options provide different categories of fraudulent activities that do not apply in this scenario. For example, "Account Takeover" typically involves someone gaining unauthorized access to a user's account to make purchases. "Unauthorized Use" might refer specifically to instances where someone uses a payment method without permission but is not necessarily when the legitimate owner is confused about a recognized charge. "Identity Theft" involves taking someone else's personal information to commit fraud and goes beyond the scope of having a charge on a statement that one simply does not recognize.

Thus, Friendly