Penalty for Credit Card Fraud in Wisconsin

Credit Fraud Costs Society Billions

Credit card fraud is any crime involving the illegal use of credit card information to gain access to cash, goods or services, which may involve identity theft and Internet fraud. Wisconsin prosecutes credit card fraud under a series of privacy protection statutes: Stat. § 943.201, Stat. § 943.203, Stat. § 943.41, Stat. § 943.82, and Stat. § 947.013. Successful prosecution under these laws may result in incarceration and financial restitution.

Types

There are several types of credit card fraud that can be prosecuted under Wisconsin law. One of the more common forms is application fraud, in which an individual applies for a card under an alias or supplies false financial information. Intercept fraud is another common method, in which a valid card is stolen from the postal service before it can be delivered to the legal card holder.

Identity theft is similar to application fraud only rather than using a fictitious identity, the fraud relies on the use of stolen identities to acquire credit. Phishing scams use cloned merchant websites to gain access to credit card information. Another type of card fraud involving the Internet is triangulation, in which a merchant uses false credit card information to purchase a product to sell to a buyer, who then sends genuine card information to the merchant. The merchant continues to use the acquired card information collected from buyers for his own gain.

Penalties

Credit card fraud is subject to both federal and state prosecution. In federal law, credit card fraud is a felony and carries with it a sentence of 15 to 30 years, depending on the extent of the crime. In Wisconsin, most forms of credit card fraud are also considered a felony. A Class H felony of credit card fraud in Wisconsin carries a penalty of up to six years in state prison and a $10,000 fine. This is notwithstanding any federal charges that may apply. Other forms of financial card fraud are deemed lesser offenses in Wisconsin, and are classified as a misdemeanor. A misdemeanor carries a penalty of nine months in jail and a $10,000 fine.

Warning

There are a number of warning signs that may alert individuals of credit card fraud. Legitimate websites do not ask for personal financial information via email. Individual orders in bulk or for many expensive items at one time may also be cause for alarm. Merchants should be wary of a billing or shipping address that cannot be verified.

Prevention

Although, there is no fool-proof way to prevent all credit card fraud, cautious citizens of the Badger State can protect themselves with a little common sense. Shred paper documents with personal financial information. Don't transmit credit card or social security numbers through email. Merchants should confirm all information before accepting a transaction and call to confirm orders. It's also a good idea to use tracking codes on all shipped orders.

Expert Insight

The Wisconsin Attorney General takes credit card fraud very seriously, but expects this crime to be on the rise despite harsh enforcement, and recommends that any person suspecting financial card crime report it to the appropriate agencies immediately. Richard Guilland, an expert credit and e-commerce, advises that credit card holders routinely check credit reports, keep records, change passwords regularly and suggests that card holders invest in a cross-cut shredder.

References

• Wisconsin Privacy Laws: Identity Theft
• Department of Justice: Identity Theft and Identity Fraud
• The University of Exeter: Types of Credit Card Fraud

Resources

• Advance Merchants Service: Merchant Account Glossary