You may work hard at your job just to make ends meet. Unfortunately, in a tough economy and with rising prices on goods and services, sometimes the daily nine-to-five is simply not enough to support your family. Desperate times like these may cause some people in Georgia to make the risky decision to commit credit card fraud. However, credit card fraud is illegal and those who are convicted of this crime can face harsh penalties.
What is credit card fraud?
Credit card fraud is a type of identity theft in which a person uses another’s credit card without the cardholder’s permission. The stolen credit card is then used to make purchases or remove funds from the credit card account. There are two categories of credit card fraud: application fraud and account takeovers.
What is application fraud?
Application fraud takes place when a person opens a credit card account using another’s personal information. They may obtain a person’s information and use it against them, or they may utilize counterfeit documents to open the credit card account. The danger of application fraud is that the victim may not even know a credit card account has been unknowingly opened in their name until it is too late.
What is an account takeover?
Account takeovers essentially hijack an already-existing credit card account. For example, an account takeover can take place if a person has enough personal information about the account holder’s billing address. The person then uses this information to report the card was lost so they can get a new card sent to them and purchase things with it.
“Skimming” is another type of account takeover. This occurs when an employee unlawfully accesses a customer’s credit card information, which is then sold to identity thieves or is hijacked.
Learn more about credit card fraud
Desperate times may lead to desperate measures, but people should think twice before committing credit card fraud. It is a crime and if convicted a person could face years in prison and hefty fines. This post is for educational purposes only and does not contain legal advice. Our firm’s webpage on theft and fraud may be a useful resource for those who want more information on this topic.