The Insurance Information Institute reported that crimes involving fraud in the U.S. created roughly $14.7 billion in total losses during 2018. The total losses in 2017 were $16.8 billion. The drop in the number of cases of credit card fraud is attributed to the transition to cards that have embedded chips for improved security. The New Jersey State Police has been aggressively investigating these forms of criminal activity statewide through their Financial Crimes Investigation Unit.
|
2018 Types of Identity Theft in the U.S. |
Volume |
|
Credit Card: New Accounts |
130,928 |
|
Miscellaneous Identity Theft |
87,765 |
|
Tax-Related Fraud |
38,967 |
|
Mobile Phone-Related |
33,466 |
|
Credit Card: Existing Accounts |
32,329 |
Unlawfully Obtaining a Credit Card
One type of fraudulent activity involves applying for a new credit card using someone's identity without their knowledge. An existing credit card may be obtained by theft or retaining a lost or misplaced credit card. It is a fourth-degree criminal offense to possess an unlawfully obtained card with intent to use it or to buy or sell a card.
A merchant or other party that accepts credit cards to pay for goods or services may also knowingly conspire with a buyer that is not the rightful cardholder to complete transactions. This type of activity also would be charged as a fourth-degree offense.
Counterfeit or Altered Credit Card
Another form of fraudulent activity involves creating counterfeit or false credit cards using devices or equipment capable of embossing an existing cardholder's account information. An expired or otherwise discarded credit card may also be altered in some manner. These acts are charged as third-degree criminal offenses.
“Skimming” to Capture Data Using Scanning Devices and Re-encoders
A device is called a “scanner, skimmer, or reader” that may be used to capture the information that is digitally stored within the strip of a credit card. This is a crime referred to as “skimming.” The following are a summary of how these third-degree offenses are committed:
- Unlawful usage of a device that can electronically obtain and store encoded data within a payment card
- A re-encoder is a device capable of unlawfully transferring digitally encoded data from a payment card to another card
- Someone who possesses such devices or equipment may be charged with a fourth-degree offense when there is intent to participate in criminal activity.
Maximum Penalties
In New Jersey, a third-degree offense is punishable by three to five years of incarceration and a maximum of $15,000 fine. The fourth-degree offenses are punishable by up to 18 months of imprisonment and a maximum $10,000 fine.
Criminal Courts in Cumberland County
Cumberland County has approximately 13 Municipal Courts at the city or township level. The Municipal Courts in New Jersey have limited jurisdiction, handling only disorderly person offenses, motor vehicle and parking violations, and local ordinance offenses. The more serious criminal cases at transferred to the Superior Court at the county level.
Cumberland County Courthouse
60 W. Broad Street
Bridgeton, NJ 08302
856-878-5050
Experienced Defense Attorney for Allegations of Credit Card Fraud
The Lento Law Firm has extensive knowledge of how to effectively defend individuals in New Jersey that are faced with allegations of theft or fraud. If you are convicted, the courts may impose a prison sentence and substantial fines. Having a serious criminal record also creates potential long-term challenges when seeking employment, housing, and more. Contact attorney Joseph D. Lento at (888) 535-3686 today.
