Four Types of Credit Card Fraud

 Posted on March 29, 2018 in Criminal Defense

Credit card fraud can take many different forms, and can even occur by accident. Penalties for being convicted of credit card fraud are serious, and can result in a misdemeanor or felony charge. Four common types of credit card fraud allegations include:

1) Failure to Obtain Consent of Cardholder

A cardholder must authorize use of the card by another person. This authorization can be either written or verbal. A cardholder can also designate an authorized user for their card, by including their name on the credit card account. Once the cardholder has formally authorized someone to use their credit card, the owner is responsible for any charges the authorized user incurs.

2) Misuse of Card

Credit card fraud can also include the transfer or sale of the physical credit card or conveying confidential information to someone who is not the primary cardholder. When a person is allowed access to a someone else’s card, it is intended for their use only, and cannot be shared with unauthorized users.

3) Invalid Credit Card

Attempting to make a purchase with a credit card that is out of date or counterfeit could result in being charged with fraud. Consumers should check that their card is not revoked or expired before using it.

4) False Statement

If a person reports incorrect information on a credit card application, such as their address or employment history, they may be charged with credit card fraud. Whether the error will be considered a crime depends on whether it is determined that the applicant intentionally misrepresented information.

Proof of Intent to Commit Fraud

One factor that will significantly impact the outcome of a case is whether intent to commit fraud can be proven. A person may unintentionally use a credit card in a way that leads them to be charged with fraud. For example, a person may unknowingly attempt to use an expired card, or there may be a misunderstanding when one person lends a card to another without a formal agreement. If it cannot be proven that the accused knowingly or intentionally committed an illegal act, there may not be a significant case against them. Working with a lawyer in a credit fraud case is recommended to increase a defendant’s odds of proving that an act was unintentional.

Defending Against Fraud Allegations

If you are being charged with credit card fraud, it is imperative that you consult with legal representation as soon as possible. The Chicago fraud defense attorneys at Luisi Legal Group will review your case thoroughly and present you with the best possible options moving forward. Call 773-276-5541 to take the first step.

Sources:

http://www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=1876&ChapterID=53&SeqStart=56800000&SeqEnd=58900000

https://www.sapling.com/7827874/can-authorization-use-credit-card

https://www.creditkarma.com/credit-cards/i/authorized-user-credit-card/

https://www.justice.gov/usam/criminal-resource-manual-949-proof-fraudulent-intent