When Does Credit Card Fraud Become a Federal Crime?

 Posted on July 22, 2023 in Federal Crimes

Credit card fraud is a serious offense that often leads to dramatic financial losses for the target of the fraud, carrying with it grim and far-reaching consequences for all involved. Although credit card fraud is usually prosecuted at the state level, it can also become a federal crime in certain situations. Today, we will explore the circumstances under which credit card fraud crosses the threshold and is considered a federal offense. If you are facing credit card fraud charges, hire a federal criminal defense attorney to protect you against these stern charges.

Federal Jurisdiction in Credit Card Fraud Cases

Credit card transactions generally involve interstate commerce and the use of U.S Mail or electronic communications, bringing them within the jurisdiction of federal law enforcement agencies such as the Federal Bureau of Investigation (FBI), the United States Postal Service, and more. While most credit card fraud cases are handled at the state level as individual criminal offenses, several factors may elevate a case to the federal level, including:

Involving Multiple Jurisdictions

Credit card fraud schemes that operate across state lines or involve transactions in multiple states can be prosecuted federally. Since such schemes often have a broader impact and involve a greater number of individuals affected, federal authorities may intervene to ensure a more unified and comprehensive investigation.

Large-Scale or Organized Fraud

When credit card fraud involves substantial losses or is conducted as part of an organized criminal enterprise, it is more likely to attract federal attention. The federal statute addressing credit card fraud imposes stricter penalties involved in schemes that affect a large number of individuals or result in significant financial damage.

Identity Theft

If credit card fraud involves the use of stolen personal information, known as identity theft, it may trigger federal involvement. Identity theft cases often involve a broader range of federal offenses related to the misuse of personal data, such as false identification document production and more.

Consequences of Federal Prosecution

Credit card fraud prosecuted at the federal level carries severe penalties, including extended prison sentences, fines, and restitution payments. The punishment for a federal credit card fraud conviction can be more severe compared to state-level offenses due to the underlying federal sentencing guidelines. Additionally, federal agencies often possess greater investigative capabilities, specialized resources, and additional tools to track down, apprehend, and prosecute offenders effectively.

Contact a Chicago Federal Credit Card Fraud Attorney

When facing charges from the federal government, it is essential to protect yourself legally. If you are facing charges, contact the Chicago, IL federal credit card fraud lawyer with Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney. Call 312-629-0669 for a free consultation.

Source - https://www.investopedia.com/ask/answers/09/stolen-credit-card.asp