Credit card fraud allegations can arise from a single disputed transaction or a larger investigation involving numerous accounts, cardholders, businesses, and financial institutions. Investigators may use transaction histories, surveillance footage, electronic records, account applications, and communications to determine who participated in suspected fraudulent activity.
However, being associated with a disputed credit card or transaction does not automatically establish criminal fraud. Questions about authorization, possession, identity, knowledge, and intent can become critical when determining whether a crime occurred and who was responsible.
A Credit Card Fraud Defense Attorney can examine the evidence behind the allegations and challenge assumptions about a defendant’s role. Milner & Wynne represents clients facing serious financial crime, white collar, and fraud allegations in Texas state and federal courts.
What Is Credit Card Fraud?
Credit card fraud is a broad description covering different forms of alleged criminal conduct involving payment cards or cardholder information.
Texas law addresses fraudulent use or possession of credit or debit card information under several circumstances. Depending on the conduct, additional state or federal offenses may also become part of an investigation.
Common allegations can involve:
- Using a stolen credit or debit card
- Making purchases without the cardholder’s permission
- Using stolen card numbers online
- Possessing card information without authorization
- Obtaining cards through false information
- Using another person’s identity to obtain credit
- Selling or transferring stolen card information
- Creating counterfeit payment cards
- Participating in organized card fraud schemes
- Using fraudulent cards to obtain goods, services, or cash
The specific criminal charge matters. Prosecutors must prove the elements of the statute they use rather than simply establish that an unauthorized transaction occurred.
Unauthorized Transactions Do Not Tell the Entire Story
A cardholder disputing a transaction may trigger an investigation, but the dispute itself does not identify who committed a crime.
Authorization can become a major issue.
Family members, employees, business partners, and other individuals sometimes receive permission to use another person’s card. Disputes may later arise over whether that permission existed or whether it extended to a particular transaction.
Other cases involve stolen account information. A person’s name, device, address, or bank account may become associated with a transaction even though someone else initiated the activity.
A Credit Card Fraud Defense Attorney can investigate the circumstances surrounding the transaction and determine whether the government’s evidence actually connects the accused person to knowing fraudulent conduct.
How Credit Card Fraud Is Investigated
Credit card transactions generate extensive electronic records.
Investigators may examine:
- Purchase histories
- Account statements
- Merchant records
- IP addresses and device information
- Online account activity
- ATM records
- Store surveillance footage
- Receipts
- Shipping information
- Emails and text messages
- Card applications
- Bank records
A physical purchase may create surveillance footage or point-of-sale records. An online transaction can generate information about devices, accounts, delivery addresses, and electronic communications.
Investigators may use several pieces of evidence together to identify a suspect.
The defense must examine the same records critically. Evidence connecting an address or account to a transaction may not necessarily establish who actually made the purchase or what that person knew about the card information.
Credit Card Fraud Under Texas Law
Texas Penal Code § 32.31 addresses credit card or debit card abuse.
The statute covers several types of prohibited conduct involving credit or debit cards. Depending on the circumstances, allegations may involve using a card without the cardholder’s effective consent, using a fictitious card, receiving certain benefits through prohibited card use, or other conduct specified by the statute.
Texas also has separate laws addressing identity theft, forgery, and other fraudulent conduct that may apply to a credit card investigation.
The charges and potential penalties therefore depend on exactly what authorities allege occurred.
Rather than treating “credit card fraud” as one universal offense, the defense must identify the specific statute and determine whether prosecutors can establish each required element.
When Credit Card Fraud Can Become a Federal Case
Some credit card fraud investigations can also implicate federal law.
Federal statutes address certain fraudulent activities involving access devices, which can include credit card numbers and other means of accessing financial accounts. Larger schemes involving interstate activity, multiple victims, identity theft, or financial institutions can attract federal attention.
Federal prosecutors may also investigate related offenses such as:
- Wire fraud
- Bank fraud
- Mail fraud
- Identity theft
- Aggravated identity theft
- Conspiracy
- Money laundering
The use of online transactions and electronic communications can create additional federal issues depending on the alleged scheme.
Milner & Wynne handles both Texas and federal criminal matters, which is important when an investigation could involve overlapping jurisdictions.
The Role of Knowledge and Intent
Possessing or using card information does not answer every question in a criminal case.
The circumstances surrounding that possession or use matter.
Someone may believe they have permission to use a card. A person may receive payment information from someone without knowing it was stolen. An employee might process transactions as part of normal job responsibilities without knowing another person is engaged in fraud.
These situations differ substantially from knowingly obtaining and using stolen card information.
Depending on the offense charged, prosecutors may need to establish that a defendant acted knowingly, fraudulently, or with another required mental state.
A Credit Card Fraud Defense Attorney can examine communications, relationships between the parties, transaction history, and other evidence that may show what the defendant actually knew.
Identity Theft and Credit Card Fraud
Credit card fraud and identity theft frequently overlap, but they are not necessarily the same offense.
An investigation may expand when authorities believe someone used another person’s identifying information to open accounts, obtain cards, access existing accounts, or complete transactions.
Federal cases can become particularly serious when prosecutors allege identity theft in connection with another felony.
This makes it important to identify every potential charge under investigation. A case initially described as credit card fraud may eventually involve several separate allegations carrying different elements and potential consequences.
Building a Defense Against Credit Card Fraud Charges
The appropriate defense depends on the evidence and specific allegations.
Important issues may include:
- Whether the defendant had permission to use the card
- Whether the defendant knew the information was stolen
- Who actually completed the transaction
- Whether surveillance footage reliably identifies the defendant
- Who controlled the electronic device involved
- Whether another person had access to the account
- Whether investigators correctly connected transactions to the accused
- Whether witnesses are credible
- Whether evidence was obtained lawfully
Mistaken identity can be particularly important in cases involving online activity.
An IP address, mailing address, or electronic account may provide investigative leads, but those records must still be connected to an actual person and the alleged criminal conduct.
Potential Consequences of Credit Card Fraud Charges
The consequences of a credit card fraud conviction depend on the jurisdiction, offense charged, number and value of transactions, criminal history, and other circumstances.
Texas charges can range in severity based on the specific conduct involved.
Federal cases may carry imprisonment, fines, restitution, forfeiture, supervised release, or other consequences depending on the offenses of conviction. Related identity theft or fraud allegations can substantially change potential exposure.
A conviction may also affect employment, professional opportunities, financial relationships, and reputation.
Because the potential consequences vary considerably, they should be evaluated based on the actual charging documents and evidence.
Credit Card Fraud Defense in Dallas
Milner & Wynne focuses exclusively on criminal defense and represents clients facing serious financial and white collar allegations.
George R. Milner III has practiced criminal law since 1992. He began his legal career as an assistant district attorney in Dallas County before entering criminal defense practice. His work includes complex criminal litigation in Texas state and federal courts.
Credit card cases can involve both traditional evidence and extensive electronic records. Understanding how each transaction occurred and whether the evidence establishes knowing participation can be central to an effective defense.
Frequently Asked Questions About Credit Card Fraud
Can I be charged for using someone else’s credit card with permission?
Authorization can be an important issue. If the cardholder gave permission, that fact may substantially affect whether prosecutors can establish an offense. Disputes can still arise over the extent or duration of that permission.
Is using a stolen credit card a felony in Texas?
The potential charge and classification depend on the specific circumstances and applicable Texas statute. Credit or debit card abuse can carry serious criminal consequences, so the actual allegations should be reviewed individually.
Can online credit card fraud be traced?
Online transactions can generate records involving accounts, devices, IP information, shipping addresses, and payment activity. However, connecting electronic information to a particular person can still require additional evidence.
Can credit card fraud lead to identity theft charges?
Yes. An investigation may include identity theft allegations when authorities believe another person’s identifying information was unlawfully obtained or used.
Can credit card fraud become a federal case?
Yes. Certain conduct involving unauthorized access devices, interstate activity, financial institutions, or larger fraud schemes can potentially result in federal prosecution.
What should I do if investigators contact me about credit card fraud?
Consider speaking with a criminal defense attorney before answering substantive questions about the allegations. An attorney can help determine what authorities are investigating and advise you about your rights and options.
Speak With a Credit Card Fraud Defense Attorney
Credit card fraud cases often depend on more than whether an unauthorized transaction occurred. Prosecutors must connect the accused person to the alleged conduct and prove the elements of the specific criminal offense.
Milner & Wynne represents clients facing serious fraud and financial crime allegations in Texas state and federal courts. If you are under investigation or have been charged with an offense involving credit or debit cards, a Credit Card Fraud Defense Attorney can review the evidence, explain the allegations, and help develop an appropriate defense.