Federal Credit Card Fraud – 18 U.S.C. § 1029 (Access Device Fraud)

Most credit card fraud cases are prosecuted under state law, but credit card and debit card fraud can also be charged as a federal crime under 18 U.S.C. § 1029, commonly known as access device fraud.

When a case is handled at the federal level, the penalties are substantially more severe and may include lengthy federal prison sentences, asset forfeiture, restitution, and fines of six figures.

Federal credit card fraud cases are typically investigated by agencies such as the Federal Bureau of Investigation and the United States Secret Service, and prosecuted in the United States District Court.

How Credit Card Fraud Becomes a Federal Crime

Not every fraudulent credit card transaction is federal. Prosecutors usually bring federal charges when the conduct:

• Involves interstate or foreign commerce

• Is part of a large-scale or organized scheme

• Includes identity theft, hacking, or cybercrime

• Uses electronic communications, financial networks, or the U.S. mail

• Involves counterfeit or unauthorized access devices in significant numbers

Because online purchases, payment apps, and digital transactions often cross state lines, many modern fraud cases qualify for federal prosecution.

Common Types of Federal Credit Card and Debit Card Fraud

Federal credit card fraud has evolved far beyond the theft of a physical card. Today's cases often involve sophisticated technology and coordinated schemes, including:

• Identity theft to open credit cards in another person's name

• Submitting fraudulent credit card applications

• Using lost or stolen credit or debit cards

• ATM and gift card skimming devices

• Creating counterfeit credit or debit cards

• Stealing mail to obtain cardholder information

• Phishing emails or text messages

• Malware and database hacking

• Intercepting electronic card transactions

As payment methods expand, so does the scope of conduct that qualifies as federal fraud.

What Is an “Access Device” Under Federal Law?

Federal prosecutors frequently rely on 18 U.S.C. § 1029, which criminalizes fraud involving access devices. An access device includes:

• Credit cards

• Debit cards

• Gift cards

• Account numbers and PINs

• Passwords and security codes

• Any device or method used to obtain money, goods, services, or value

A person can be charged even if no fraudulent purchase was completed. Simply possessing 15 or more counterfeit or unauthorized access devices may be enough for prosecution.

18 U.S.C. § 1029 – Access Device Fraud

Under 18 U.S.C. § 1029, it is a federal felony to knowingly and with intent to defraud:

• Produce, use, or traffic counterfeit access devices

• Use or possess unauthorized access devices

• Possess skimmers, scanners, or modified equipment

• Use device-making equipment

• Alter or reprogram credit card data

• Solicit, sell, or distribute fraudulent access devices

• Possess 15 or more counterfeit or unauthorized devices

Penalties for Access Device Fraud

A conviction may result in:

• 10 to 15 years in federal prison

• Fines up to $250,000

• Asset forfeiture

• Court-ordered restitution to victims

Aggravated Identity Theft – 18 U.S.C. § 1028A

Federal prosecutors often add aggravated identity theft charges under 18 U.S.C. § 1028A when credit card fraud involves another person's identifying information.

Mandatory Consequences

• 2 years in federal prison

• The sentence must be served consecutively to any other conviction

This mandatory sentence dramatically increases exposure and is a major reason federal fraud cases are so dangerous.

Other Federal Credit and Debit Card Fraud Statutes

Federal prosecutors may also rely on:

• 15 U.S.C. § 1644 – Fraudulent use of credit cards

• 15 U.S.C. § 1693n – Debit card and electronic fund transfer fraud

Violations can carry penalties of up to 10 years in prison, substantial fines, or both.

Related Federal Fraud Charges

Credit card fraud cases frequently include additional charges that increase sentencing exposure, such as:

• 18 U.S.C. § 1341 – Mail fraud

• 18 U.S.C. § 1343 – Wire fraud

• 18 U.S.C. § 371 – Conspiracy

• 18 U.S.C. § 1344 – Bank fraud

• 18 U.S.C. § 1956 – Money laundering

• 18 U.S.C. § 1037 – Email fraud

• 18 U.S.C. § 2325 – Telemarketing fraud

Each additional count can significantly raise the guideline sentence.

Defenses to Federal Credit Card Fraud Charges

Federal fraud cases are complex, but viable defenses may exist depending on the facts:

Lack of Intent to Defraud

The government must prove you acted knowingly and intentionally. Mistake, authorization, or lack of knowledge can defeat this element.

You Were a Victim of Identity Theft

If your identity or accounts were compromised, you may not be criminally responsible.

No Interstate Commerce

Federal jurisdiction requires a connection to interstate or foreign commerce. Purely local conduct may only qualify for state prosecution.

No Knowledge of Counterfeit Devices

Possession alone is not enough. Prosecutors must prove you knew the devices were unauthorized or counterfeit.

Entrapment or Coercion

If law enforcement induced the conduct or someone forced your participation, defenses may apply.

Why Federal Credit Card Fraud Charges Are So Serious

A federal fraud conviction can result in:

• Long-term federal imprisonment

• Permanent felony record

• Massive financial penalties and restitution

• Immigration consequences for non-citizens

Early legal representation is critical to protecting your rights and limiting exposure.

Federal Credit Card Fraud Defense in Los Angeles

If you are under investigation or charged with federal credit card or debit card fraud, do not speak to investigators without an attorney. These cases often involve digital forensics, financial records, and cooperating witnesses.

Contact Cron, Israels & Stark, a federal criminal defense law firm serving clients in Los Angeles and nationwide, for a confidential case evaluation and strategic defense planning.