Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.

What’s the punishment for credit card fraud?

Even minor credit card fraud can get you in big trouble.

Updated

Fact checked

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.

And 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, 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 the 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.

Compare credit cards with fraud protection

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.

Name Product Filter values Rewards Purchase APR Annual fee
Chase Freedom Flex℠
5% back in rotating categories up to $1,500 combined each activated quarter (then 1%), 5% on travel purchased through Chase, 3% on dining and drugstores, and 1% on all other purchases
0% intro for the first 15 months (then 14.99% to 23.74% variable)
$0
Get up to 5% cashback in rotating and newly added everyday categories. The refreshed Freedom Flex card has lots of earning potential.
Chase Sapphire Preferred® Card
5x points on Lyft, 2x points on travel and dining and 1x points on all other purchases
15.99% to 22.99% variable
$95
Earn a huge signup bonus worth $$1,000 with this popular travel card. Combine with other Chase Ultimate Rewards cards for even greater value.
Chase Freedom Unlimited®
5% cash back on travel purchased through Chase, 5% on Lyft, 3% on dining and drugstores and 1.5% on all other purchases
0% intro for the first 15 months (then 14.99% to 23.74% variable)
$0
This solid 1.5% cashback card gets even better with the addition of up to 5% back in categories like travel, drug stores and dining.
American Express® Gold Card
3x points on directly-booked flights; 4x at restaurants; 4x at US supermarkets on up to $25,000 annually (then 1x points)
$250
Earn up to 4x points on select purchases, a bevy of travel perks, and a welcome offer worth up to $600 with this upper-mid tier travel card. Rates & fees
Chase Sapphire Reserve®
10x points on Lyft rides, 3x points on dining and travel after earning your $300 travel credit and 1x points on all other purchases
16.99% to 23.99% variable
$550
Get a generous $300 in annual travel credits, 3x points on travel and dining, and a 50% bonus on point redemptions with Chase's premier card.
loading

Compare up to 4 providers

Bottom line

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.

To protect yourself against credit card fraud, be sure to compare credit cards with fraud protection.

Frequently asked questions

Related Posts

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site