Credit Card Forgery Charges

Credit card forgery is typically charged as a felony under both federal and state law, with serious penalties. In many states, you can face charges even for just possessing materials used to make fake cards.

Understanding what constitutes a credit card forgery charge is crucial to determining how to respond to it. If you are facing charges or have questions about your legal options, contact a criminal defense attorney.​ They can review your case and protect your rights.

What Is Credit Card Forgery?

Credit card forgery is the act of producing, possessing, or distributing counterfeit “access devices” with knowledge and intent to commit fraud. “Access devices” include credit cards, debit cards, account numbers, and personal identification numbers. They also include other identifiers you can use to obtain money, goods, or services or to transfer funds.

Federal law​ does not use the term “credit card forgery.” Instead, the law broadly refers to various types of conduct involving access devices. This includes making and using these devices to defraud another. It also includes the following:

• Creating or trafficking counterfeit devices
• Using unauthorized access devices
• Possessing device-making equipment

State laws similarly criminalize these activities. For instance, under Florida law, it’s illegal to make, emboss, or alter payment cards with the intent to defraud. California law also prohibits the design, manufacture, embossing, or alteration of counterfeit access cards.

What’s the Difference Between Forgery and Fraud?

The key difference between forgery and other credit card crimes is that credit card forgery specifically focuses on creating or modifying a credit card. Fraud encompasses a broader range of deceptive conduct. It is the act of obtaining money, property, or services through fraudulent means. Credit card fraud​ encompasses the unauthorized use of legitimate cards, the use of stolen account information, or the fraudulent use of someone else’s cards.

Types of Credit Card Fraud

Credit card fraud encompasses various illegal activities involving the unauthorized use of payment cards. Federal law and state statutes address multiple methods of committing credit card fraud:

Unauthorized Use of Stolen Cards

When you use access devices that are lost, stolen, expired, revoked, or canceled to obtain goods or services, you are committing a type of credit card fraud. Federal law prohibits knowingly using unauthorized access devices to obtain anything worth $1,000 or more within a year. The law requires that you intended to defraud and that you knew you were not authorized to use the card.

State laws also cover this crime. For instance, in California, it’s illegal for any person to access another person’s account or card without the consent of the card issuer or the cardholder.

Card-Not-Present Fraud

Card-not-present fraud occurs when someone uses stolen credit card information to make purchases online or over the phone without possessing the actual card. This type of fraud has increased in recent years as more people use their credit cards for online purchases.

Fraudsters may obtain credit card information through phishing scams, data breaches, or card-skimming devices installed on ATM keypads or gas pumps. Once someone has the credit card number, security codes, and cardholder details, they can complete transactions in person.

Application Fraud

Application fraud happens when someone submits false information to get payment cards in another person’s name. It can also occur when someone creates cards using fictitious names or identities. This can include applying for cards using another person’s stolen personal information. It also includes providing false information.

Counterfeiting and Forgery

Counterfeiting​ refers to the creation of fake cards using stolen account numbers or blank cards that appear authentic. Forgery refers to altering existing legitimate cards by modifying account information, cardholder names, or other details on the card.

Both counterfeiting and forgery are serious federal offenses. The law doesn’t require the actual use of a credit card. Mere possession of 15 or more​ such devices with fraudulent intent is enough to face federal charges.

Trafficking in Access Devices

Trafficking involves selling, transferring, or distributing stolen or counterfeit cards to others for profit. You do not need to be the person who created the cards or who uses them. Passing control of these devices to someone else constitutes trafficking under federal law.

Device-Making Equipment Possession

Federal law also targets the tools used to create counterfeit cards. It covers embossers, magnetic stripe encoders, hologram applicators, and similar tools used in the production of cards. Prosecutors must prove that you knowingly possessed this equipment and intended to use it for fraudulent activity.

Penalties for Credit Card Forgery

Federal law provides penalties for fraud and related activity in connection with access devices. The penalties vary based on the specific violations you are charged with and whether you have prior convictions. State penalties can vary significantly from federal law and differ from state to state.

Most first-time convictions under federal law carry a maximum penalty of up to 15 years in prison, a fine, or both. This includes violations involving:

• Manufacturing, using, or distributing counterfeit access devices
• Distributing or using unauthorized access devices to get goods or services worth $1,000 or more during a one-year period
• Possessing 15 or more counterfeit or unauthorized access devices
• Effecting transactions, with one or more access devices issued to another person or persons, to receive payment, or any other thing of value, totaling $1,000 or more during a one-year period
• Using, making, or having telecommunications equipment that has been altered to get unauthorized service
• Manufacturing, distributing, or having equipment used to create counterfeit cards
• Using, making, or having scanning receivers in your possession
• Using, making, or having hardware or software designed to alter telecommunications equipment

A smaller subset of violations carries a maximum penalty of up to 10 years in prison, a fine, or both. This includes:

• Soliciting people to provide access devices or selling information about how to obtain them
• Setting up arrangements for others to submit access device transaction records to receive payment

Prior convictions can significantly increase penalties. A second conviction for credit card forgery can lead to up to 20 years in prison.

Actual sentencing depends on multiple factors beyond whether it’s a first or second offense. Courts consider the amount of fraud involved, the number of victims, your criminal history, and other circumstances of the case. In addition to prison sentences and fines, federal law allows law enforcement agencies to seize personal property, including property used in the commission of the offense or intended for use.

Related Offenses

Credit card fraud charges may include additional charges for the same conduct or criminal activity. Let’s look at some of the most common ones.

Identity Theft

Using another person’s identifying information to obtain payment cards constitutes identity theft. This includes using someone else’s Social Security number, birth date, or account information.

Forgery

Forgery​ generally involves creating a fake document or altering an existing one. It also includes putting someone else’s signature on something without their consent. The main element of forgery is the intent to deceive. You must knowingly make or alter the card with the intent to commit fraudulent transactions.

Grand Theft

When fraud results in significant property loss, prosecutors may add charges of grand theft. Grand theft applies when the value of the property stolen exceeds the amount for petty theft.

Wire Fraud and Mail Fraud

Using interstate communications or postal services to carry out card fraud schemes triggers additional federal charges. This could include sending emails with stolen card information or mailing counterfeit cards to buyers.

Possible Defenses

If you are facing credit card fraud charges, several defenses might apply depending on your circumstances. The strength of these defenses depends on the facts of your case and the evidence prosecutors have against you.

Lack of Intent To Defraud

Prosecutors must prove you acted knowingly and with intent to defraud. Without proof of fraudulent intent, the charges cannot stand. Maybe you possessed counterfeit cards without knowing they were fake, or owned device-making equipment as part of a legitimate business.

Authorization or Consent

Evidence showing the cardholder or card issuer granted you permission eliminates an element of this criminal charge. Proper documentation can establish this defense. This includes written authorization or communication records that show consent. You can show text messages, emails, or other documents.

Seek Legal Advice

If you are facing credit card forgery charges, understanding the federal and state laws that apply to your case is a necessity. A criminal defense attorney​ can help evaluate the evidence against you and build a strong defense strategy tailored to your case.

Victims of credit card fraud need to notify their credit card issuer as soon as they become aware of what happened. You can also file a report with the Federal Trade Commission (FTC)​ at IdentityTheft.gov​ to create an official record of the fraud. You can also file a report with your local police.