Credit Card Fraud Laws

   
As a cardholder, you need to aware of the credit card fraud laws as well as the strict punishment for those committing these crimes.

By definition, what's constitutes credit card fraud?

When a person uses someone’s credit card account without the knowledge or consent of the account holder, it is fraud. Of course there are many different ways of committing this type of crime; lost or stolen credit cards, compromised account numbers, or even stealing a person's identity and opening new accounts under their name.

Whatever the case may be, as soon as the victim informs the bank that the charges are not theirs (usually a verbal testimony on the phone) it
becomes a case of fraud.

What do the credit card fraud laws say?

For the criminal: The Title 18 of the U.S. Code, Section 1029 provides details of credit card fraud penalties. Credit card fraud laws are also put in place by various state and federal law agencies. The punishment for this type of crime can vary in misdemeanor and felony classes depending on the jurisdiction and state laws. From being charged with class A misdemeanor to class E felony, the crime can result in many different criminal charges with varying sentences.

As a first offense, the lowest time required to be served, according to the laws, can range from 5 years to 15 years.

However the credit card fraud laws stipulate a sentence a criminal for up to 20 years in prison in the case of repeat offenders. Aspiring fraudsters should think twice because the length of incarceration for this type of fraud is sometimes longer than it is for murder!

In addition to the lengthy prison sentences, there are also fines of up to $10,000 per offense which are added on to the restitution and court costs.

For the victim: In the United States, there is a federal credit card fraud law that stipulates the consumer is not responsible for any fraudulent charges committed after he/she first reported the card lost or stolen to the bank. The consumer may be held liable for the fraud before the reporting, but the max liability is $50.00.

What can you do?

Given that instance of credit card fraudulent transactions are increasing despite strict laws, it is crucial that you are aware of your options in case you become a victim. Familiarize yourself with fraud laws that govern your state. Find out about cross-border international credit card fraud laws as they may be different from domestic laws. Also, check out the FBI website fraud advice section to learn more about prevention and the applicable laws for this type of crime.