Fraudster

As the name implies, a fraudster is someone who attempts to achieve personal gain through deceptive or illegal practices. In regards to credit cards, this usually refers to those making – or enabling others to make – unauthorized purchases using lost or stolen cardholder information.

Card-not-present fraud only requires basic card or account details to access the victim's funds. Some fraudsters obtain this information and sell it to others, while a different type of criminal attempts to make illegal transactions using the stolen data.

Fraudsters are not necessarily professional criminals. Cardholders themselves may act as fraudsters by abusing the system and attempting to get something for free. For example, a customer might order and receive a high-ticket item, such as jewelry, then file a chargeback with their bank and claim the item never arrived. The bank then forces a refund from the merchant, allowing the cardholder to keep both the merchandise and the cost of the transaction.