Which type of fraud involves using the same collateral for multiple loans without disclosure to the lenders?

The scenario described pertains specifically to double-pledging collateral, which occurs when a borrower uses the same asset to secure more than one loan without informing the lenders. This action is deceptive because it creates a false impression about the value and availability of the collateral.

In a legitimate lending situation, lenders rely on the accuracy of information regarding collateral as it affects their assessment of risk and the decision to provide a loan. When collateral is double-pledged, the risk for lenders significantly increases, as they may not be aware of other claims against the same asset. This can lead to substantial losses if the borrower defaults on multiple loans tied to the same collateral.

Loan sharking generally refers to lending practices that involve very high interest rates and often employ coercive methods for repayment, which does not specifically address the manipulation of collateral. Credit card fraud involves unauthorized use of someone else's credit card or information for transactions, while investment fraud pertains to misrepresentation in investment opportunities. Each of these types of fraud does not involve the misuse of collateral in the same manner as double-pledging does, making it the most accurate choice in relation to the question.