It's fraud because you're entering fake details... to act as a bank account.
If you went and applied for a loan with fake details, it's fraud, just the same as this.
I don't think you understand the concept of fraud, if someone (Let's call them person A) goes and purchases a prepaid credit/debit card at CVS for person B. There is no way that'd be considered fraud there's nothing illegal about that, person B goes and registers the card with there details simple as that.