IMAT 2017 Q16 [Underlying Assumption]

Many banks encourage their customers to buy insurance against credit card fraud and other kinds of ‘identity theft’. But the banks are really protecting themselves. Customers who are victims of credit card fraud suffer inconvenience but they are unlikely to lose money: the costs of any fraudulent transactions are met by the bank. It is therefore unnecessary for customers to spend money on additional insurance services.

Which one of the following is an underlying assumption of the above argument?

A. Customers whose identities have been stolen would have benefited from the banks’ additional insurance services.

B. Additional insurance services are widely available for credit card customers.

C. The banks’ additional insurance services protect only against the costs of fraudulent credit card transactions.

D. People who are worried about identity theft worry only about their credit cards.

E. Credit card fraud is a less serious problem than many people believe.