Question

Read the scenario and choose the correct term in the last sentence. William hands over his credit card to the waiter of a restaurant to pay for his meal. The waiter returns and tells him that his card is declined. William then pays for the meal by cash. He calls the credit card company to find out why his card has been declined, and they tell him that he has reached his credit limit. He tells the company to send a statement. When he is checking the statement, he realizes that there are several purchases that he didn’t make. Thus, William is a victim of

a. Identity theft
b. Credit card fraud
c. Forgery
d. Embezzlement

Answer 1

William, given that there are several purchases he didn't make, is a victim of B. Credit card fraud.

William is a victim of credit card fraud because he discovered unauthorized purchases on his credit card statement that he did not make. Credit card fraud involves the unauthorized use of someone else's credit card information to make purchases or transactions without their knowledge or consent.

In this scenario, someone used William's credit card details to make purchases without his permission, which constitutes credit card fraud. It's different from identity theft because it specifically involves fraudulent use of the credit card, not necessarily the theft of his entire identity.