The Penalty for the Fraudulent Use of a Credit Card
Credit card fraud is also known as credit fraud. Penalties for the fraudulent use of a credit card are severe. An individual may be prosecuted by federal and state governments.
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Types of fraud
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Credit card fraud includes the unauthorized use of a person's credit card, the manufacture of counterfeit credit cards and the use of credit card information to open credit accounts or apply for loans.
Effects
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Credit card fraud can result in thousands of dollars of charges in stolen goods and services. When a criminal uses credit information to apply for loans or make purchases, it can affect the victim's credit report. A cardholder also goes through the emotional stress of having their property and/or information stolen.
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Penalties - Federal
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Under the Identity Theft and Assumption Deterrence Act of 1998 and the United States Code, credit card fraud is a federal crime. The U.S. Code states that a person guilty of a first offense of credit fraud may be subject to a fine and incarcerated for 15 years. A person guilty of a second offense of credit fraud may receive punishment of a jail sentence of 20 years and a fine.
Penalties - State
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States may prosecute credit card fraud by applying state laws. Florida declares a person who takes a credit card without the cardholder's consent and with the intent to profit guilty of a misdemeanor of the first degree and subject to a $1,000 fine and a prison sentence of one year. Credit card forgery is subject to a $5,000 fine and five years of imprisonment.
Prevention/Solution
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You can prevent credit card fraud by storing your credit cards and credit information in a secure place. Do not leave credit cards unguarded in public. To avoid fraud, use caution when providing your credit card to businesses.
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References
- Photo Credit credit card image by Aleksandr Lobanov from Fotolia.com
