Credit Card Fraud
Credit card fraud involves the unauthorized use by an individual of a credit card account owned by another individual. The fraudster uses the owner’s card number, card details, and other personal information to make unauthorized transactions through the credit card account. Theft is the most common type of credit card fraud and occurs when someone steals the account via a range of methods from dumpster diving to computer hacking.
“Fraud” is a legal term that refers to a situation in which someone intentionally hides the truth or misrepresents facts in order to deceive or manipulate another individual. Credit card fraud is “fraud” using credit cards.
Credit card fraud is committed in several ways:
- If a card is lost or stolen, and a person other than the account owner uses it to buy things or to represent that he/she is the person named on the card
- If a credit card receipt displaying the card number and owner’s signature is used by someone other than the owner to make unauthorized charges, even that person does not physically posses the card
- If a card owner charges a purchase to the card and another person adds unauthorized charges to the original order, creating a situation in which the second person’s charges are covered by the card in addition to the legitimate charges made by the card owner
Credit card fraud is made a criminal offense under 18 U.S.C. §1029.