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Credit Card Fraud Law
This type of fraud involves the theft and/or counterfeit of a credit card or a similar credit payment device; this includes use of a credit card to illegally obtain funds, services or goods by means of deception. Credit card fraud also extends to the theft of personal information in order to gain access to another individual’s account or to create an illegal, fraudulent account, which is also a form of identity theft.
When a person is a victim of credit card fraud the amount of time it takes for the crime to be discovered can vary. When the card itself is stolen, the theft may be determined quickly, but in cases where a person’s personal information has been stolen, it can take far longer. If only a person’s credit card information is appropriated, then the consumer is likely to notice the illegal charges on their next billing statement, but if the theft extends to an individual’s identity, then a culprit who uses a separate address may be able to fully prevent discovery of the crime for an indeterminate amount of time.
What is Credit Card Fraud Law? In the U.S., the Secret Service handles crimes involving U.S. currency, and with a $150,000 bar to meet before the Secret Service is required investigate, many cases of credit card fraud go unprosecuted. In addition, most cases of credit card fraud occur across state lines, with extradition fees preventing local law enforcement agencies from carrying through with prosecution.
While charges incurred through Credit Card Fraud can quickly grow to be exorbitant, U.S. Federal Law limits a card holder’s liability to fifty dollars. Many banks, however, choose to fully waive such liability, if the card holder avows through a signed affidavit that the charges were incurred fraudulently. Under current law, it is the merchant who must pay for the cost of credit card fraud, and if lacking in proper insurance, the chargeback fee as well. Because of this disadvantage and with rising incidents of fraud, many merchants have petitioned for change in State and Federal Law, though many of these proposed changes have been opposed by the credit card industry.
Credit card fraud is considered a type of white collar crime. However, because merchants who accept credit cards and consumers who use credit cards sign legally binding agreements with the banks which issue or process the cards, this also puts this area of law under the practice of contract law. And due to this, State and Federal law doesn’t play quite as large a role in these transactions and instances of fraud as it does for other types of criminal behavior.
Credit card fraud law also deals with business practices employed by some credit card companies to collect large fees and hidden charges from consumers. In this way, it can overlap with consumer rights law.
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Credit Card Fraud Law - US
- Credit Card Fraud - Definition
Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account.
- Credit Card Fraud - Overview
Credit card fraud involves an unauthorized taking of another’s credit card information for the purpose of either charging purchases to the victim’s account or removing funds from the account. It is regarded as one form of identity theft.
- Fair Credit Billing Act (FCBA)
The Fair Credit Billing Act (FCBA) is a United States federal law enacted as an amendment to the Truth in Lending Act (codified at 15 U.S.C. § 1601 et seq.). Its purpose is to protect consumers from unfair billing practices and to provide a mechanism for addressing billing errors in "open end" credit accounts, such as credit card or charge card accounts.
- Fair Debt Collection Practices Act (FDCPA)
The Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq., is a United States statute added in 1978 as Title VIII of the Consumer Credit Protection Act. Its purposes are to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy.
- FTC - Consumer Information
This section of the FTC website offers practical information on a variety of consumer topics. The information here can help you avoid rip-offs and exercise your consumer rights.
- FTC - Filing a Complaint
The Federal Trade Commission, the nation's consumer protection agency, collects complaints about companies, business practices, identity theft, and episodes of violence in the media.
- Online Credit Card Fraud - Spam Laws
Credit card fraud has become such an issue that no precise number can truly defined the global losses. And while most financial institutions are rather sensitive about the subject, a report from the FBI indicated that credit cards were largely responsible for the $315 billion loss the U.S. endured from financial fraud in 2005.
- United States Secret Service - Criminal Investigations - Fraud
The United States Secret Service is responsible for maintaining the integrity of the nation's financial infrastructure and payment systems. As a part of this mission, the Secret Service constantly implements and evaluates prevention and response measures to guard against electronic crimes as well as other computer related fraud. The Secret Service derives its authority to investigate specified criminal violations from Title 18 of the United States Code, Section 3056.
- USDOJ - Fraud Section
The Fraud Section plays a unique and essential role in the Department's fight against sophisticated economic crime. The Section is a front-line litigating unit that acts as a rapid response team, investigating and prosecuting complex white collar crime cases throughout the country. The Section is uniquely qualified to act in that capacity, based on its vast experience with sophisticated fraud schemes; its expertise in managing complex and multi-district litigation; and its ability to deploy resources effectively to address law enforcement priorities and respond to geographically shifting crime problems.
Credit Card Fraud Law - International
- Card Watch
Card Watch raises awareness about all types of plastic card fraud in the UK, and provides information to prevent fraudulent use of credit cards, debit cards, cheque guarantee cards and charge cards.
- Counterfeiting and Credit Card Fraud - Canada
This page has tips on how to protect your money and your credit and bank cards against fraud and misuse.
Organizations Related to Credit Card Fraud Law
- National Consumers League's Fraud Center
The fraud center's mission is to give consumers the information they need to avoid becoming victims of telemarketing and Internet fraud and to help them get their complaints to law enforcement agencies quickly and easily.
- Spam Busters - Credit Card Fraud
Although credit card fraud is certainly on the rise -- and credit card fraud on the Internet is rising even more dramatically -- many savvy Internet shoppers know that the reality is that it's actually much safer to enter your credit card number on a secure online order form than it is to give your credit card to a waiter at a restaurant.
Publications Related to Credit Card Fraud Law
- Avoiding Credit and Charge Card Fraud - InfoFAQ
Credit and charge card fraud costs cardholders and issuers hundreds of millions of dollars each year. While theft is the most obvious form of fraud, it can occur in other ways. For example, someone may use your card number without your knowledge.
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- Overview of White Collar Crimes in California
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- Hawaii Employment Law Briefing: Hawaii Security Breach and Identity Theft Law Basics
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- All Criminal Law Articles
Articles written by attorneys and experts worldwide discussing legal aspects related to Criminal Law including: arson, assault, battery, bribery, burglary, child abuse, child pornography, computer crime, controlled substances, credit card fraud, criminal defense, criminal law, drugs and narcotics, DUI, DWI, embezzlement, fraud, expungements, felonies, homicide, identity theft, manslaughter, money laundering, murder, perjury, prostitution, rape, RICO, robbery, sex crimes, shoplifting, theft, weapons, white collar crime and wire fraud.
