Indiana Law on Credit Card Fraud
Credit card fraud is one of the most common white collar crimes in America. The Federal Trade Commission (FTC), a government agency which handles identity theft cases, among other financial crimes, received 300,000 complaints in 2008, out of which credit card fraud was the most reported. In Indiana, like in most states, criminal judges take this type of crime seriously. Culprits are punishable by heavy fines or prison sentences of up to three years.
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Credit Card Fraud
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Credit card fraud happens when an individual knowingly uses a card that was illegally obtained. If you use someone else's identity information to acquire a credit card, for instance, you are guilty of fraud. Using a forged, or a cloned card, is equally a crime. The Internet is awash with black markets for credit card information.
The Law
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Under Title 17, Section 1029 of the U.S. Code, credit card fraud is a federal offense. In Indiana, credit card fraud is a class D felony. Prison sentences range from six months to three years. There is also a fine of up to $10,000 for representing yourself as the holder of another person's credit card.
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Black Market
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As an increasing number of people use credit card for online shopping, identity theft and credit card fraud have become a common crime because perpetrators are rarely caught. Criminals hide behind their computers. In some cases, they are located in a different country, which makes prosecution sometimes nearly impossible. Stolen credit cards are commonly used on the internet usually to purchase expensive merchandise.
Offshore Criminals
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In June to 2008, accounts belonging to customers in Indiana at ten different banks were accessed by offshore criminals who were traced to Nigeria, Spain, Ukraine and Russia where they made withdrawals. The year before, the FTC received about 800,000 complaints related to identity theft. In total, U.S. consumers lost $1.2 billion that year, and credit card fraud accounted for 23 percent.
How Information is Stolen
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Credit card fraud is sometimes committed by people who steal and assume someone else's identity. When an individual obtains someone else's personal information such as name, social security number, he could use that to open bank accounts or even apply for credit cards. Others intercept mail with credit cards which they use to purchase merchandise. Cards are sold on the cyber black market.
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References
Resources
- Photo Credit credit card image by Christopher Hall from Fotolia.com
