How does transaction fraud typically manifest?

Transaction fraud typically manifests through unauthorized use of a payment device, which involves an individual gaining access to another person's payment information without their consent. This can occur through various means, such as stealing credit card information, phishing attacks, or using malware to intercept payment data. When someone uses another person's payment device or account without authorization, it directly impacts the integrity of the transaction, resulting in financial losses for the victim and potentially escalating the overall risk within the payment processing system.

This aspect of transaction fraud emphasizes the importance of robust security measures to protect payment data and maintain consumer trust in payment systems. The manifestation of transaction fraud through unauthorized use significantly highlights the necessity for vigilance and proactive fraud prevention strategies in the payments industry.