NY Credit Card Fraud Attorney

Being charged with credit card fraud can be stressful and confusing. You may have questions about what happens next and how to protect yourself. In a time like this, having the right legal guidance can make all the difference.

Mehdi Essmidi, a former New York City prosecutor, has spent his career defending the rights of those charged with crimes and fighting to ensure the best possible outcome. He knows the criminal justice system inside and out and uses that knowledge to anticipate the strategies used against his clients. Call us now for a free consultation.

Credit Card Fraud NY Penal Law

Here are the main types of credit card fraud charges we see in our law firm:

Criminal Possession of Stolen Credit Cards

Under NY Penal Law § 165.45, knowingly possessing a stolen credit or debit card is fourth-degree criminal possession of stolen property (a Class E felony).

A person found holding two or more stolen cards is presumed under § 165.55 to have known they were stolen. The charge climbs to third-degree criminal possession of stolen property (a Class D felony) when the value of the stolen property exceeds $3,000.

Unauthorized Use of Credit Cards

Using a stolen credit or debit card to pay for a service is theft of services under NY Penal Law § 165.15(1). The charge applies when the person knows the card is stolen. Using a stolen card to buy goods is charged as larceny instead, and forged cards fall under the forgery statutes below.

Theft of services is a Class A misdemeanor. When a stolen card is used to buy goods, the value drives the charge: petit larceny (a Class A misdemeanor) for smaller amounts and fourth-degree grand larceny (a Class E felony) once the value exceeds 3,000.

Forged Instruments (Fake Credit Cards)

Creating or altering a fake credit card with the intent to defraud is forgery in the second degree under NY Penal Law § 170.10, and possessing one, knowing it is forged and intending to use it, is criminal possession of a forged instrument in the second degree under § 170.25. Both are Class D felonies.

Related Crimes

Identity Theft

Identity theft is defined in NY Penal Law § 190.77-84. Using someone else’s ID information for financial gain or financial loss to another person.

In credit card fraud cases, identity theft can happen when someone uses someone else’s information to open new credit card accounts, uses stolen credit card information to make purchases, or uses personal information to take over existing credit card accounts.

Identity theft charges range from a Class A misdemeanor to a Class D felony, depending on the amount taken.

Grand Larceny

Credit card grand larceny starts at fourth-degree, and the degree climbs with the value of the goods or services obtained:

• Fourth-Degree Grand Larceny (Class E felony): When the value is over $1,000
• Third-Degree Grand Larceny (Class D felony): When the value is over $3,000
• Second-Degree Grand Larceny (Class C felony): When the value is over $50,000
• First-Degree Grand Larceny (Class B felony): When the value is over $1 million

Money Laundering

Money laundering happens when illegal funds are funneled through transactions to look legitimate. Under New York law, laundering the proceeds of credit card fraud is a felony once the transactions exceed $5,000, starting as a Class E felony, and the penalties increase with the amount laundered.

Computer Fraud

Computer fraud is closely related to credit card fraud, where computers are used to obtain credit card information illegally. Hacking and phishing are common methods. New York law treats computer fraud as a felony when it is used to commit another crime.

Prosecutors can charge defendants with related crimes all at the same time, depending on the case. This can result in multiple charges and higher penalties under New York penal law.

Credit Card Fraud Defenses

Here are some defenses that may apply to credit card fraud:

• Lack of Intent to Defraud: One of the key elements in credit card fraud cases is intent to defraud. If there was no intent to commit fraud, this could be a good defense.
• Unauthorized Use by a Third Party: If someone else used a credit card or personal information without the owner’s knowledge or consent, you shouldn’t be held responsible for their actions.
• Fourth Amendment Violations: If law enforcement gained evidence against you through an illegal search or seizure, it may be possible to have that evidence suppressed.
• Insufficient Evidence: The prosecution must prove every detail of the crime beyond a reasonable doubt. Otherwise, charges might be dismissed.

Contact Us Today for a Free Consultation

If you were charged with possessing or using a fraudulent debit card, the sooner you call us, the more time we have to build your defense. We keep you informed and involved every step of the way. Contact our fraud defense attorney today for a free consultation.

Frequently Asked Questions

What are the penalties for credit card grand larceny in New York?

Stealing a credit or debit card is grand larceny in the fourth degree, a class E felony, no matter how much was charged. Once the value of what was taken passes 3,000, it becomes third degree, a class D felony, and the tiers climb from there. A class E felony carries up to four years in state prison and a class D up to seven, though a first-time offender may be sentenced to far less, including probation or a definite term of a year or less. The classification and sentence depend on the specific facts of the case.

Can credit card fraud be charged as a federal crime?

Yes, though most New York City cases stay in state court. Federal access device fraud under 18 U.S.C. § 1029 applies when someone knowingly uses stolen or counterfeit card numbers to obtain $1,000 or more in a one-year period, possesses fifteen or more stolen or counterfeit card numbers, or makes or traffics in counterfeit cards. Federal penalties run up to 10 or 15 years depending on the offense. Cases involving large losses, organized rings, or cards from several states are the ones most likely to draw federal prosecutors.

Can a chargeback be treated as credit card fraud?

It may be, though it is uncommon. Disputing a charge you know you authorized, to keep the goods and get the money back, is a false statement to the bank, and a merchant or card issuer that believes the dispute was knowingly false may file a police report. Whether a criminal case follows is up to the prosecutor, and an honest dispute, such as flagging charges after a card was stolen and reported promptly, is not fraud. Keep records of every call and every dispute you file.

What evidence is used in credit card fraud cases?

Mostly records that already exist. Every card transaction is time-stamped and tied to a location or IP address, so investigators match it against store and ATM video, delivery addresses, account log-ins, and the cardholder’s own text alerts. Banks keep activation calls, fraud-department notes, and dispute files, and prosecutors subpoena all of it. How that evidence was gathered is where a defense often starts: a search of your phone, car, or home without a valid warrant may make what was found unusable in court.

Should I talk to the detective who called me about a credit card investigation?

Not without a lawyer. A call inviting you to “come in and clear this up” usually means one of two things: the detective has enough to arrest you and would prefer you show up voluntarily, or does not yet have enough and hopes you will supply it. You are not required to attend, and nothing you say in that room helps you, while anything you say may be used to charge you. Have an attorney contact the detective instead. That call alone may change how the case is handled.

I got a desk appearance ticket for a credit card charge. What happens at the first court date?

A desk appearance ticket is not an informal phone call. A desk appearance ticket means you have been charged with a crime, and missing the date brings a warrant. The date on the ticket is your arraignment. You will be formally told the charge, a not-guilty plea is entered, the judge decides on release conditions, and the case is adjourned to a new date. Hiring an attorney before that date lets them speak with the prosecutor first, which may mean a better offer or a resolution on the first day.

If I pay back what was charged, will the case go away?

Not by itself. Restitution is often the single most helpful fact at the negotiating table, and a canceled charge or a repaid cardholder may open the door to a reduced plea or dismissal, but the decision to charge or drop a case belongs to the District Attorney, not to the person whose card was used. Offering money directly to the cardholder in exchange for not pursuing the matter may be charged as compounding a crime, a misdemeanor of its own, and turn one problem into two. Repayment should go through your attorney, on the record.

If the cardholder doesn’t want to press charges, can the case still go forward?

Yes. In New York, the District Attorney decides whether to prosecute, and a cardholder who wants to let it go cannot close the case on their own. Once a fraud dispute is filed, the bank or card issuer that absorbed the loss is often the complaining party, so a family member or roommate who changes their mind may no longer be the one the prosecutor needs. A reluctant witness may still affect what the prosecutor can prove; leave that conversation to your attorney.

How long after it happened can I still be charged?

Five years for a felony and two years for a misdemeanor, counted from the date of the offense under New York Criminal Procedure Law § 30.10. The clock stops for any period you were continuously outside New York, up to five additional years, so leaving the state does not run out the deadline.