CFE – Financial Transactions and Fraud Schemes — Question 69

Which of the following is a reason why prepaid debit and gift card fraud schemes are attractive to fraudsters?

Answer options

• A. Prepaid cards can be purchased with stolen credit cards and used to quickly convert illicit credit card funds into legitimate cash.
• B. Prepaid cards can only be purchased from financial institutions.
• C. Prepaid cards are often not accepted by online retailers and can only be used in transactions where the cards must be physically present.
• D. All of the above are reasons why prepaid cards are attractive to fraudsters.

Correct answer: D

Explanation

The correct answer is D because it encompasses all the reasons listed in the other options. Option A highlights how fraudsters can convert stolen funds into cash, while B and C incorrectly state the limitations of prepaid card access and usage, which do not deter fraud but rather facilitate it.