Credit card fraud involves the unauthorized use of a credit card or credit card information to purchase goods or services. This illegal activity can take many forms, from physically taking possession of someone's credit card to using their card information online without their knowledge. Understanding the legal ramifications of credit card fraud is crucial, as the charges can be severe and the consequences long-lasting.
While some instances of credit card fraud fall under state jurisdiction, others can be prosecuted as federal offenses. Federal authorities investigate and prosecute federal crimes, often involving extensive investigations utilizing various resources. Defending against such charges requires a robust defense strategy.
If you’re in Iowa City or Davenport facing federal charges, please schedule a consultation with Keegan, Tindal & Jaeger. Call (319) 499-5524 or contact us online today.
What Constitutes Credit Card Fraud?
Broadly, credit card fraud is a criminal act that involves the unauthorized use of a credit card or credit card information to obtain goods or services. This type of fraud can manifest in several ways, each with its methods and consequences.
Common types of credit card fraud include:
- Unauthorized use of a credit card: This offense involves taking physical possession of someone else's credit card and using it to make unauthorized purchases.
- Card-not-present fraud: In this type, the perpetrator obtains a victim's credit card number and personal information. They use these details to make purchases where the physical card does not need to be present, such as online or over the phone.
- Counterfeit cards: This activity involves creating fake credit cards using stolen information. These counterfeit cards can then be used to make unauthorized purchases.
When Does Credit Card Fraud Become a Federal Crime?
Credit card fraud can be prosecuted at the state and federal levels, depending on the nature and extent of the crime.
State crimes violate state laws and are prosecuted by state authorities. These crimes typically occur within a single state's borders and are investigated by local or state law enforcement agencies.
In contrast, federal crimes violate federal laws and are prosecuted by federal authorities. These crimes often involve activities that cross state lines or have broader implications affecting national interests.
Several factors can elevate a credit card fraud case from state to federal jurisdiction. Key criteria include:
- Interstate or foreign commerce: If the fraudulent activity involves using credit cards across state lines, it falls under federal jurisdiction. For example, using a stolen credit card to make purchases in multiple states
- Use of the Internet or mail for fraudulent activities: Using the Internet or mail systems to commit credit card fraud can lead to federal charges. Online transactions typically cross state lines and the U.S. Postal Service is federally regulated. Thus, activity conducted through these channels is subject to federal laws.
- Connection to organized crime or larger schemes: If credit card fraud is part of a larger, organized scheme or connected to criminal enterprises, it is more likely to be prosecuted as a federal crime.
Federal Laws Governing Credit Card Fraud
Credit card fraud is governed by several federal statutes designed to address different aspects of fraudulent activities involving credit cards and related access devices.
The following are a few examples of these laws:
- 18 U.S.C. § 1029: This statute specifically targets fraud involving access devices, which include credit cards, debit cards, and other means of accessing financial accounts. The law covers various fraudulent activities like possessing 15 or more counterfeit or unauthorized access devices.
- 15 U.S.C. § 1644: This statute addresses the fraudulent use of credit cards, emphasizing the protection of cardholders and financial institutions from unauthorized transactions.
- 18 U.S.C. § 1028A: This statute concerns aggravated identity theft, which involves the unauthorized use of another person's identifying information in connection with certain crimes.
Penalties and Consequences Under Federal Law
Federal convictions for credit card fraud can lead to years of imprisonment, reflecting the crime's impact on victims and the financial system. Additionally, substantial fines can be imposed, further penalizing the perpetrators and serving as a deterrent to others. The length of confinement and amount of fines depend on several factors, including the statute violated and the nature of the alleged activity.
The Necessity of Legal Representation
Facing federal credit card fraud charges is very serious, as the consequences can be severe and long-lasting. Federal charges often involve intricate investigations and substantial penalties, including lengthy prison sentences and high fines. The complexity of federal legal proceedings and the stringent standards of proof necessitate a robust defense strategy.
If you are facing allegations of credit card fraud, it is crucial to seek professional legal advice immediately. An experienced criminal defense attorney can help navigate the complexities of federal law, protect your rights, and work toward a favorable outcome in your case.
You don’t have to face federal charges alone. Schedule a consultation with Keegan, Tindal & Jaeger by calling (319) 499-5524.