Credit Card Fraud: There is More Than One Kind

 Posted on May 28, 2020 in Fraud

It was in late March that a major credit card fraud ring was shut down, an effort that was coordinated between Russia’s Federal Security Service (FSB) and United States law enforcement. One man is believed to be the mastermind behind over 40 websites on the dark web that were used to collect and sell stolen credit cards. The man and his associates used cryptocurrency to move hundreds of millions of dollars gained from the credit card theft, and it was this gain that the American authorities seized.

Although stealing credit cards is one type of credit card fraud, there are others that happen very frequently, as well. Three of the most common types of fraud that are considered federal offenses are below.

Phishing Scams

Phishing scams have become very commonplace today. These scams involve emails that look as though they have come from banks and other financial institutions, and credit card issuers. Typically the email will state that there is a problem with the credit card account and will ask the cardholder to click on a link within the email and enter their login information, specifically their password. The websites that the email link directs them to look the same as the official ones, but they are illegitimate. They simply allow someone else to access the information so the offender can wrack up fraudulent credit card fraud charges.

Counterfeit Credit Cards

Counterfeiting credit cards is a similar offense to simply stealing a card. This offense does involve using a real credit card, but the card is not taken. Instead, information gained from the magnetic strip is stolen and then used to create a fake card. Skimming scams, which involve a device placed inside a bank machine that will steal the information, are commonly used to counterfeit credit cards. Victims in these scams are not only the person that had their credit card counterfeited, but also merchants, as they can be held liable for accepting fake credit cards.

Identity Theft

Identity theft can happen in a number of ways. A person may use a phishing scam, or they may simply go through a person’s garbage to obtain sensitive and confidential documents. However it is accomplished, when a person steals another’s identity, they use personal information to obtain a credit card in that person’s name and then wrack up fraudulent charges. Identity theft is also sometimes done to open bank accounts, lines of credit, and even apply for jobs.

A Chicago Federal Criminal Defense Lawyer Can Help with These Charges

Although there are many different types of credit card fraud, and many offenses associated with it, not everyone charged is guilty. If you have been arrested for any type of credit card fraud, or you believe you are under federal investigation, it is important to understand that there is help. At the Law Offices of Hal M. Garfinkel, our skilled Chicago criminal defense lawyer knows that there are valid defenses to these offenses and he will use them effectively to give you the best chance of success. When you need a solid legal defense, call us at 312-629-0669 or contact us online to schedule a free consultation with our experienced attorney.

Source:

https://www.forbes.com/sites/leemathews/2020/03/27/a-massive-credit-card-fraud-ring-just-got-shut-down-by-russian-authorities/#d671ba8cacfa