The unauthorized use of a credit or debit card, or of card account information, to obtain money, goods or services, or to make a fraudulent payment, without the consent of the cardholder. It includes the physical theft or counterfeiting of cards, the skimming of card data at point of sale terminals or automated teller machines, and card not present fraud carried out online using stolen card numbers. It is one of the most common forms of financial crime, having grown substantially alongside the expansion of card based and online payments since the late twentieth century.
Facts
Classification CodeUnited States federal law classifies credit card fraud under 18 U.S. Code section 1029 as access device fraud, separately criminalizing producing or trafficking in counterfeit devices, using unauthorized devices to obtain $1,000 or more in a year, possessing fifteen or more counterfeit or unauthorized devices, and producing or possessing device-making equipment. 1 Typical PenaltyUnder 18 U.S. Code section 1029, a first federal access device fraud offense is punished by a fine or up to 10 years imprisonment for most violations, up to 15 years for certain more serious categories, and up to 20 years for a repeat offense after an earlier conviction under the same section, along with forfeiture of property used to commit it. 1 Elements of OffenseCredit card fraud occurs when an unauthorized user gains access to a cardholder's card or account information, whether through a physically stolen or counterfeit card, skimming of card data, or a card-not-present transaction using stolen numbers online, and uses it to obtain money, goods, services or another payment without the cardholder's consent. 2 Notable ExampleThe scale of credit card fraud is illustrated by United Kingdom figures for 2018, when unauthorised financial fraud losses across payment cards and remote banking totalled 844.8 million pounds, even though banks and card companies prevented a further 1.66 billion pounds of attempted fraud that same year. 2 Jurisdiction VariationThe United Kingdom tracks and reports unauthorised card and remote banking fraud losses as a single national industry statistic through its banks and card companies, a reporting structure distinct from the United States' federal criminal prosecution route under 18 U.S. Code section 1029. 2 Classification
Offense GradeSerious or Indictable Offense 1 In the Other Atlases
- Also in Geography Atlas: Europe, found in there.
- Also in Geography Atlas: North America, found in there.
Sources
1. 18 U.S. Code section 1029 (Cornell LII)
Cornell Law School, Legal Information InstituteSection 1029(a) opening enumeration
knowingly and with intent to defraud produces, uses, or traffics in one or more counterfeit access devices
Section 1029(c)(1) penalties paragraph
a fine under this title or imprisonment for not more than 10 years, or both; and (ii) if the offense is under paragraph (4), (5), (8), or (9) of subsection (a), a fine under this title or imprisonment for not more than 15 years, or both; (B) in the case of an offense that occurs after a conviction for another offense under this section, a fine under this title or imprisonment for not more than 20 years
View the Source 2. Credit Card Fraud (Wikipedia)
lead paragraph
Credit card fraud is an inclusive term for fraud committed using a payment card, such as a credit card or debit card.
second paragraph, United Kingdom loss figures
In 2018, unauthorised financial fraud losses across payment cards and remote banking totalled £844.8 million in the United Kingdom. Banks and card companies prevented £1.66 billion in unauthorised fraud in 2018.
second paragraph, UK 2018 fraud totals sentence
In 2018, unauthorised financial fraud losses across payment cards and remote banking totalled £844.8 million in the United Kingdom.
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