Credit card fraud is a broad term that covers any crime involving a payment card. Usually, the goal of credit card fraud is to get access to someone else’s funds, but it can sometimes involve identity theft as well.
Credit card fraud punishment
Credit card fraud can mean a range of things, but in essence, it’s stealing someone’s credit card to access their funds and/or identity. But even if no funds are taken, stealing a physical credit card or the card’s information is punishable by law. If the card is actually used, the punishment for fraud is more severe. The highest form of credit card fraud peaks with credit card forgery and identity theft.
Different states have different laws in prosecuting and classifying credit card fraud. Depending on these factors, credit card fraud can be a:
Minor offense. The punishment for a minor offense is typically a monetary fine, rarely jail time. Typically, minor offense includes stealing the card but not using it.
Misdemeanor. The punishment can be a combination of a higher monetary fine and jail time. In most cases, a misdemeanor is when the fraudster uses a relatively small amount from the stolen credit card.
Felony. This is the most serious crime that often comes with the highest monetary fine and years in prison. This includes a higher credit card spend, credit card forgery and identity theft.
What are the chances of getting caught using a stolen credit card?
Unlike paying with cash, credit card purchases are easily traceable because they leave a digital footprint. To avoid that, fraudsters use freight forwarders or shipping mules to disguise their address if ordering online. Another frequently used method is called triangulation.
Triangulation is a process where the fraudster opens up multiple eBay accounts and sells legitimate items they don’t actually possess. When person A buys the item and deposits the money to the fraudster’s PayPal account, the fraudster orders the same item from another seller using the stolen credit card and has it shipped to person A’s address. This way the fraudster gets off with the money while person A receives an item bought with a stolen credit card.
These methods only lower the chances of getting caught, but they can still be tracked.
Do police investigate credit card theft?
Calling the police and filing a report is among the first things you should do when you discover credit card theft. This can result in a police investigation, but only if it’s a serious crime. Sometimes, the police may not get involved and claim that this is an issue you should resolve with your credit card company.
Is my money safe from credit card fraud?
With most credit cards, you are already protected with a zero liability policy. This means that you aren’t liable for any unauthorized purchases you report to your credit card company. There are other ways to protect yourself against fraud, too. To learn more check out our guides:
Some credit cards come with a variety of fraud protection features, such as the option to freeze and unfreeze your card, chip-and-pin protection that increases counterfeit difficulty or zero liability for unauthorized purchases.
Credit card fraud is punishable by law. Even if you steal the card and never use it, you can still be on the hook and pay a fine. But the severity of the punishment depends on the state where it’s committed.
Kliment Dukovski is a credit cards and investments writer. He's written over 600 articles to help readers find and compare the best credit cards. Kliment has also written on money transfers, home loans and more. Previously, he ghostwrote guides and articles on foreign exchange, stock market trading and cryptocurrencies.
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