Houston Criminal Attorney: Credit Card Fraud

Credit card fraud is one of the most common white collar offenses, and it affects thousands of people every year. Credit or Debit card fraud can involve the outright theft of another person’s credit card, using another person’s credit card without their knowledge, using the identification number of a person’s credit card without actually taking the card, or using another person’s credit card information that has been stored in a computer without their knowledge.

The increasing popularity of online shopping and online banking coupled with the popularity of credit and debit cards as a method of payment may make the temptation for credit card fraud very powerful for many people. Any type of fraud is considered a serious criminal offense in the state of Texas. Credit card fraud in particular is a common offense, and law enforcement will aggressively prosecute anyone alleged to have taken part in this crime. The specific charges brought against you depend on both how the credit card was obtained or used and  the value of the merchandise or services illegally obtained.

Credit Card / Debit Card Abuse essentially means using someone else’s card without their consent. This can be done in person at a store or online at any store web site where there are insufficient security protocols (e.g., no PAN truncation, so the complete card number appears on receipts; or no requests by the seller for authenticating information like a PIN or zip code). Here, the physical card (debit or credit) is in the possession of another person after being “found” or given to them.
Identity theft often finds credit card fraud a lucrative opportunity: once someone has personal information regarding an individual (name, address, SSN, etc.) then it is relatively easy to use that identity information to apply for and receive credit cards in that person’s name. This form of credit card fraud involves using a fake credit card account to buy things online or in person at stores.
Skimming means that the credit card numbers are taken by someone without disturbing the actual plastic card. This can happen during a regular credit transaction – when someone pays for a meal at a restaurant or buys a new computer game at the local shopping mall. Sometimes the numbers are discovered from receipts or other documents that have been discarded, unshredded, in neighborhood trash cans or dumpsters. Other times, the number is lifted online from an unsuspecting person who fills out a survey, etc. The credit card number is then used to purchase items in transactions where the physical card is not required.

According to Texas Penal Code §32.31, a person commits credit card fraud if that person:

• Presents or uses a credit card or debit card with knowledge that: (A)the card, whether or not expired, has not been issued to him and is not used with the effective consent of the cardholder; or (B)the card has expired or has been revoked or cancelled with the intent to obtain a benefit fraudulently;
• Uses a fictitious credit card or debit card or the pretended number or description of a fictitious card with intent to obtain a benefit;
• Receives a benefit that they know has been obtained in violation;
• Steals a credit card or debit card or, with knowledge that it has been stolen, receives a credit card or debit card with intent to use, sell or transfer it to a person other than the issuer or the cardholder;
• Purchases a credit card or debit card from a person who he knows is not the issuer;
• Sells a credit card or debit card, not being the issuer;            
• Uses or induces the cardholder to use the cardholder's credit card or debit card to obtain property or service for the actor's benefit for which the cardholder is financially unable to pay;
• Possesses a credit card or debit card with intent to use it without the effective consent of the cardholder, or
• Being authorized by an issuer to furnish goods or services on presentation of a credit card or debit card, with intent to defraud the issuer or a cardholder, fails to furnish goods or services represented in writing to the issuer.

A conviction for a state jail felony credit card fraud offense can lead to at least 180 days in a jail up to two years in jail and/or a fine not more than $10,000; if the credit card fraud is committed against an elderly person, the alleged offender could receive a conviction for a felony of the third degree which can result in a prison sentence ranging from two to ten years and/or fines up to $10,000. Punishments for a conviction will also vary depending on whether the alleged offender already has a felony conviction, caused the death or serious bodily injury to another when they committed the offense, and/or used a weapon during the commission of the offense.

If you believe you may be under investigation for a white collar crime, it is critical to your case that you hire a qualified criminal defense attorney right away. Do not risk having your rights violated by neglecting to retain a skilled, experienced criminal defense attorney. Contact the Houston, Texas law offices of Richard Kuniansky today at 713-622-8333 or visit www.kunianskylaw.com for a free consultation. We will work diligently to ensure your rights are protected.