Credit card fraud, which is considered a form of identity theft, is a serious violation of federal and international laws. An individual brought to the courts on charges of credit card fraud faces heavy fines, prison time and a criminal record that could deter future employment.
Identification
Many types of different activities constitute credit card fraud. A store clerk might make charges to a card through stolen information. Phishing scams are a type of credit card fraud. An individual might do something a simple as filling out applications under different names or addresses, or something as complicated as mass-producing large quantities of fake credit cards with working magnetic strips and seemingly legitimate information.
Who Presses Charges
Sometimes, an individual or family may choose not to press charges following credit card fraud. However, often law enforcement will step in and charge an individual with fraud due to the seriousness of the crime. State and federal agencies can even step in if a credit card fraud victim wishes not to press charges.
Who Investigates the Charges
Any law enforcement agency may be involved in investigating the charges against an individual. The U.S. government's Financial Crimes Division generally plays a role in the prosecution of credit card fraud, and will often help to plan an investigation. However, the Secret Service also plays a role in fraud investigations, particularly in matters of national security. Due to the threat of financial information coming into the hands of U.S. enemies, the Secret Service has primary jurisdiction in the investigation and prosecution of charges.
Defenses
A relatively wide variety of defenses exists for credit card fraud, although most of them are aimed at reducing sentences. Sentencing standards, extenuating circumstances and police misconduct may often provide an outlet for an individual to receive a reduced sentence or to be found not guilty. White collar crimes are usually quite complicated; as such, a number of defenses and loopholes exist to allow for leniency--especially if a lawyer is sought early in the process, or on a first charge.
Penalties
Penalties for such fraud can be stiff--up to 20 years in prison for a second offense. Other penalties may be negotiated as well, from community service to fines to rehabilitation. Depending on the amount of money (if any) stolen, the manner in which fraud was attempted, and the individual's criminal record, charges may be applied in an unpredictable manner.
