18 U.S.C. § 1029 – Access device fraud

What is Access Device Fraud and Why Should I Care?

Access device fraud–also called credit card fraud–is no joke; it’s a serious crime that can land you in prison. But what exactly is it? And how do you avoid accidentally committing it? Let’s break it down.

What is an Access Device?

An “access device” basically means anything you can use to access money or credit–so credit cards, debit cards, gift cards, account numbers, etc. The legal definition from 18 U.S.C. § 1029 is super broad and includes “any card, plate, code, account number, electronic serial number, mobile identification number, personal identification number, or other telecommunications service, equipment, or instrument identifier, or other means of account access.”

What is Access Device Fraud?

Okay, so now that we know what an access device is, what exactly is fraud? Access device fraud–also called credit card fraud–is when you use an access device in a fraudulent way to get money, credits, goods, or services that you’re not entitled to. There are a bunch of ways you can commit access device fraud:

Using a fake, stolen, or unauthorized credit card or gift card
Stealing and using someone else’s credit card information
Making fake credit cards with stolen account information
Hacking into someone’s account to steal their information or make purchases
Using account numbers or gift cards that have been tampered with or deactivated

Basically any shady way you can think of to use credit cards or account information that isn’t yours to get stuff for free. Not cool.

Why is Access Device Fraud Illegal?

Access device fraud is illegal because it rips off hardworking people, banks, and businesses. When someone’s card information gets stolen, it can wreak havoc on their finances and credit score. Businesses lose a crazy amount of money from fraud every year, which means higher prices and fees for everyone. No one wants to get ripped off or pay for scammers’ stuff!

What are the Penalties for Access Device Fraud?

Under 18 U.S.C. § 1029, access device fraud is a felony with some pretty serious penalties:

Up to 10 years in federal prison
Fines up to $250,000
Probation
Restitution to pay back what you stole

The exact penalty depends on how much the fraud was worth. If it’s less than $1,000 total, you’ll get up to 1 year in prison. Between $1,000-$2,000 bumps it up to 3 years. Over $2,000 can get you up to 10 years if convicted.

What About Just Using a Fake Credit Card?

Let’s say you get a fake credit card and want to go on a shopping spree. Even if you don’t steal anyone’s information, making or using a fake or counterfeit card is access device fraud. The penalties are:

Up to 15 years in prison if it’s your first offense
Up to 20 years if you’ve been convicted before

Can Businesses Commit Access Device Fraud?

Yep. If a business knowingly traffics in or uses fake credit cards or account information, they can face fines up to $500,000, restitution, and forfeiture of money or property obtained illegally. Business owners and employees can even go to prison.

What About Just Having Fake Credit Cards?

Under 18 U.S.C. § 1029, it’s illegal to have 15 or more counterfeit or unauthorized access devices if you intend to defraud someone. Even if you don’t use them, just having a stash of 15+ fake credit cards can get you up to 10 years in prison and a quarter million dollars in fines. Not worth it.

Can You Go to Jail for Using Someone Else’s Credit Card?

Yes! If you use a credit card or account number that belongs to your spouse, parents, roommate, friend, or anyone else without their permission, that’s access device fraud. You can face the same huge fines and years in federal prison even if you know the person.

What About Using an Old Gift Card?

This one’s tricky. If a store deactivates a gift card because it’s expired or the balance is used up, using that gift card could be considered access device fraud. You could potentially get in trouble for using deactivated cards or numbers even if you didn’t steal them. Yikes!

When Does Access Device Fraud Become a Federal Crime?

Normally access device fraud is prosecuted under state law. But if the fraud involves:

Interstate commerce (across state lines)
Foreign commerce (internationally)
Affected a financial institution

Then it becomes a federal crime under 18 U.S.C. § 1029. The FBI gets involved, and you could end up in federal prison instead of state jail.

What are Some Defenses to Access Device Fraud?

If you’ve been accused of access device fraud, don’t panic. A skilled criminal defense lawyer can help fight the charges with defenses like:

You had permission – If the card owner gave you permission, it’s not fraud.
Mistaken identity – You didn’t do it, someone just used your name.
Lack of intent – You made an honest mistake and had no intent to defraud.
Entrapment – Law enforcement tricked or coerced you into committing fraud.

An attorney may also be able to get charges reduced or dismissed through plea bargaining or by negotiating with prosecutors.

How Can I Avoid Access Device Fraud Charges?

The best way to avoid getting busted for access device fraud is simple – don’t do it! But here are some tips:

Never make, use, or share fake credit cards or account numbers.
Don’t “borrow” someone else’s credit card without asking first.
Be very careful buying gift cards or account numbers secondhand.
If a card is expired or deactivated, don’t try to use it.
Watch out for card skimmers at gas stations and ATMs.
Shred credit card offers and statements before throwing them out.
Keep cards and account numbers secure. Report lost cards immediately.

If you take common sense precautions, you should have no worries. But if you do get charged, stay silent and call a lawyer immediately.

Access device fraud is a big deal that can really ruin your life if you get caught. It’s just not worth the risk of huge fines, prison time, and a felony on your record. If you need money, get a job… don’t steal identities or run credit card scams! Stay smart and stay legal.

Sources:

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