Can You Be Charged with Federal Identity Theft Without Stealing Money?

 Posted on October 29, 2025 in Identity Theft

Identity theft is much more than stealing credit cards or draining a bank account. Under federal law, what matters is whether someone’s personal information was used without legal authority. If you have been accused of this type of crime, a Chicago, IL federal identity theft defense lawyer can explain your rights and help you build a defense.

What Is Federal Identity Theft Under U.S. Law?

Federal identity theft laws differ from state laws in how and where they apply. Federal cases often involve conduct that crosses state lines or affects federal programs like Social Security, Medicare, or immigration. State identity theft laws, like those in Illinois, typically apply when the misuse happens within the state or targets individuals or businesses located there.

The actual federal statute is fairly vague. Under 18 U.S.C. § 1028, it is a crime to "knowingly transfer, possess, or use" another person’s identification with intent to commit an unlawful act. That includes using someone else’s name, Social Security number, or driver’s license for something illegal. The word "knowingly" is important. Prosecutors must prove you were aware the information belonged to someone else and that you used it on purpose, not by mistake.

Do You Have To Steal Money To Be Charged With Identity Theft?

You do not have to actually commit another crime or harm someone financially. You can be charged even if you did not steal money or property. Federal law focuses on the misuse of personal information, not financial gain.

In many cases, the charge is based on intent and how the information was used. Even if no one lost money, the government may argue that the unauthorized use itself caused harm or violated federal law.

Examples of Identity Theft Without Financial Gain

Some ways that identity theft can happen without involving stolen money include:

• Using another person’s Social Security number to apply for a job or benefits

• Giving a fake or borrowed ID to the police during a traffic stop

• Using a someone else’s identity to apply for housing or medical care

• Creating fake identification cards with another person’s name

• Filing false tax returns with someone else’s information

• Submitting immigration paperwork using another person’s identity

• Using a fake identity to enter a restricted area or secure workplace

• Pretending to be another person online to avoid law enforcement

What Are the Penalties for Federal Identity Theft?

The penalties for identity theft depend on the specific charge. General identity theft can result in up to 15 years in federal prison. It covers situations where the identity misuse happens on its own, rather than being tied to another serious federal crime. Defendants can also be ordered to pay fines and may be required to give up any property or assets connected to the offense.

If the identity theft involves fake identification documents or affects national security or immigration, the sentence can increase to 20 years. Courts may also order restitution. This involves compensating victims for costs such as correcting credit records, replacing identification documents, or addressing other related expenses. A conviction can also make it more difficult to find employment, secure housing, or obtain certain professional licenses.

What Is Aggravated Identity Theft and How Is It Different?

Under 18 U.S.C. § 1028A, aggravated identity theft is an enhanced charge that adds more punishment. It applies when someone uses another person’s identity during a felony. For example, using another person’s information during immigration fraud, mail fraud, or tax fraud can lead to an aggravated identity theft charge.

This offense includes a mandatory two-year sentence on top of the penalty for the main crime. If the case involves terrorism, that extra sentence becomes five years. The law does not allow these sentences to run at the same time as other penalties. That means they must be served one after another.

What Evidence Does the Government Use To Prove Identity Theft?

Federal prosecutors usually rely on documents and electronic data to build their cases. Common types of evidence include:

• Emails, text messages, or computer files showing access to someone else’s personal information

• Job or loan applications filed under another person’s name

• Bank or tax records linked to the false identity

• Witness statements or video footage showing the use of fake documents

• Evidence that the defendant knew the identity belonged to a real person, such as statements, messages, or prior interactions with the victim, and used it intentionally

Prosecutors must show that your actions were not accidental and that you had a purpose for using the information. Your defense lawyer can review how the evidence was collected and whether your constitutional rights were violated. They can also challenge how the government interprets your intent and question the credibility of witnesses. In some cases, your attorney may present evidence showing that your actions were the result of a mistake, that the incident was a misunderstanding, or that you lacked intent to break the law.

Can You Face State and Federal Identity Theft Charges at the Same Time?

The state and federal governments can file charges for the same conduct if their laws were violated. Illinois has its own law under 720 ILCS 5/16-30 that makes it illegal to use another person’s information to get goods, services, or anything of value. A person can therefore face two cases in two separate courts at once.

Each case has separate penalties, so the risk of serious consequences is higher if you are charged on both a state and federal level. You need to have an attorney who understands both systems and can coordinate your defense strategy.

Schedule a Free Consultation With a Chicago, IL Identity Theft Defense Attorney

Federal identity theft cases often involve detailed electronic evidence and multiple federal agencies, such as the FBI or IRS. Attorney Hal M. Garfinkel, a former prosecutor, understands how the government builds identity theft cases. He can challenge the evidence and fight the allegations against you. He will take the time to explain every step of the process in clear terms so you always know what to expect.

If you have been accused of identity theft, contact Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney at 312-629-0669 to schedule a free consultation with our Chicago, IL federal identity theft defense lawyer right away.