What role does an ISO play in the Bust-Out Card Fraud scheme?

In the context of Bust-Out Card Fraud, an Independent Sales Organization (ISO) plays a significant role in facilitating terminal procurement for fraudulent activities. ISOs are typically involved in providing payment processing solutions and equipment to merchants. In a Bust-Out scheme, fraudsters may exploit ISOs to obtain Point-of-Sale (POS) terminals or other necessary equipment to process stolen or counterfeit credit card transactions.

By helping fraudsters secure the means to carry out these transactions, the ISO inadvertently becomes a part of the scheme, making it easier for criminals to defraud payment networks and financial institutions. The approach involves leveraging legitimate services to support illegitimate activities, which highlights the vulnerability of the payment processing system when adequate oversight and compliance measures are not in place.

The other options, while they may touch upon various functions ISOs have, do not accurately reflect the specific involvement of an ISO in fraud schemes like Bust-Out Card Fraud. This context reinforces the critical importance of vigilance and integrity in payment processing and the potential consequences of fraud on all stakeholders involved.