Theft And Fraud Crimes

Credit Card Theft And Fraud Crimes

Theft and fraud crimes, including credit card fraud and identity theft, cover a broad range of criminal behavior, which under some jurisdictions, is defined as larceny and which can include minor crimes ranging from shoplifting to sophisticated white-collar crimes like embezzlement and cyber-crimes to violent forms of larceny such as armed robbery and burglary.

The term larceny has also been applied to credit card fraud and identity theft which is the major focus of this article.

Credit Card Fraud – Identity Theft

Personal Identifiers

While identity theft can take different forms, they all have one thing in common. They begin with the theft of personal information, otherwise known as personal identifiers. These personal identifiers include social security numbers, passport numbers, driver’s license numbers, taxpayer identification numbers, bank account numbers, or credit card numbers. Personal address information: street address, email address, and residential telephone numbers.

ATM Credit Card Skimmers

Identity theft is the most common means by which credit card fraud occurs. It often begins with the installation of a credit card skimmer. The device is covertly installed on top of the A.T.M. keypad or over the card insertion slot. The most targeted A.T.M. cash machines are located in gas stations and convenience stores. The device reads the credit card information and identification number. Credit card thieves can access your account or open up new ones with this information.

Dark Web And Online Purchase Scams

Other criminal uses of identity theft are to access personal information through online purchase scams or on the dark web. The dark web is a term used to describe the location of web content that is accessible only to particular browsers or through specific network configurations. While using the dark web is not illegal, it pulls up web content that is not indexed on search engines, such as bank accounts, email accounts, and certain databases.

The identity thief can then submit fraudulent credit card applications to banks.

The Elderly – Common Victims of Identity Theft

Being the victim of credit card fraud and identity theft can be an embarrassing experience for an older person. It can cause a victim to feel vulnerable and confused. This is especially true in financial elder abuse cases, and it has been a growing problem in elder assisted living facilities across the nation.

Fortunately, most credit card victims fall under consumer protection laws such as the Fair Credit Billing Act, limiting consumer liability in identity and credit card fraud.

Federal Penalties for Identity Theft and Credit Card Fraud

According to government reports, identity theft is not a singular crime. Identity theft and the resulting credit card fraud typically include other types of crimes. These crimes are not always included as lesser included crimes but are independent crimes carrying additional prison time.

Under federal law, it is a crime to misuse someone’s identifying information, such as bank statements, driver’s license numbers, social security numbers, and credit card information, to commit a crime.

Aggravated Identity Theft Under Federal Law

It wasn’t until 1998 that Congress made identity theft a federal crime. The Identity Theft Penalty Enhancement Act (18 U.S.C. § 1028) was created to increase the penalties for aggravated identity theft.

Aggravated identity theft is the unlawful use of another’s identity to commit additional felonies such as social security fraud, insurance fraud, cybercrimes, and cover-up immigration violations that would otherwise result in deportation from the United States.

Increase Prison Terms For Aggravated Identity Theft

The following two examples of federal aggravated identity theft resulting in increased prison terms are:

If convicted of identity theft involving the criminal use and possession of equipment to produce counterfeit documents, the penalties include up to 15 years in prison.

If convicted of identity theft at trial for the purpose of drug trafficking, or it was connected to a violent crime or homicide, the penalties can include up to 20 additional years in prison.

Other Forms Of Theft And Fraud Crimes

The Crime of Burglary

Over time, elements of burglary expanded in its scope and reach. The common-law crime of burglary used to require breaking and entering of another’s dwelling with the intent to commit larceny therein.

To see just how much the crime of burglary has expanded, consider California’s Penal Code 459,  which broadly describes burglary as “[T]he entering of any commercial or residential structure or locked vehicle with the intent to commit grand theft, petty theft or any felony offense once inside.

Almost any enclosed area qualifies under the former structure requirement, including a locked vehicle. A person may be charged with burglary even where there is no forced entry, and the intent to limit the crime to larceny is no longer required – any crime satisfies the intent requirement.

The Crime of Bribery

The crime of bribery has been defined as the unlawful giving of something of value to another person with the intent of unlawfully influencing or inducing that person to do something or refrain from doing something in their official capacity.

The target of the bribery scheme does not have to be a public official. Those who are temporarily serving in a fiduciary capacity or those who are sworn in a judicial proceeding also qualify as targets of bribery.

For example, in recent years, organized crime has used bribery as a means to influence jurors on their verdict or pay a witness to give false sworn testimony.

The Crime of Embezzlement

Embezzlement is a type of fraud and is mostly thought of as a white-collar crime. The crime occurs when a person, usually a fiduciary, is entrusted with another’s funds or assets and then misappropriates them for the embezzler’s own personal benefit. Embezzlers expose themselves to both civil and criminal liability for their actions.

A key element is that the embezzler attains the funds or assets lawfully and therefore has the legal right to possess them, but then the embezzler uses the possession for a felonious purpose – to enrich themselves. Embezzlement usually occurs within the framework of an employer-employee relationship in which the employee is a bookkeeper or even a chief financial officer.

Ponzi schemes are another form of embezzlement and usually involve a sophisticated scheme to defraud investors.

Federal Sentencing For Larceny

Federal sentencing guidelines related to larceny include the base crime and eighteen aggravating factors. Given the broad spread between larceny and aggravated larceny, federal prison terms can range from a few months to twenty years or more if the larceny involves other crimes, such as causing physical harm or using weapons in the commission of the crime.