Automatic debit program schemes occur when fraudsters obtain a consumer's bank account information and then use this information to draft money from the consumer's bank account without that person's consent. This statement is:

Automatic debit program schemes occur when fraudsters obtain a consumer's bank account information and then use this information to draft money from the consumer's bank account without that person's consent. This statement is:

• A. True
• B. False
• C. They are only used for credit cards
• D. They require the consumer's permission to set up

Answer: (A)

Automatic debit schemes cover withdrawals from a consumer’s bank account through mechanisms like direct debit or ACH transactions. When fraudsters get hold of bank account details, they can initiate those debits without the account holder’s permission, making it unauthorized and fraudulent. This is why the statement is true: the scheme described relies on the attacker using the consumer’s account information to pull funds without consent. It’s not limited to credit cards, and legitimate direct debits do require proper authorization from the account holder. The fraud scenario bypasses that consent, which is what makes it a fraud tactic rather than a legitimate payment setup.

Automatic debit schemes cover withdrawals from a consumer’s bank account through mechanisms like direct debit or ACH transactions. When fraudsters get hold of bank account details, they can initiate those debits without the account holder’s permission, making it unauthorized and fraudulent. This is why the statement is true: the scheme described relies on the attacker using the consumer’s account information to pull funds without consent.

It’s not limited to credit cards, and legitimate direct debits do require proper authorization from the account holder. The fraud scenario bypasses that consent, which is what makes it a fraud tactic rather than a legitimate payment setup.