What Is Federal Check and Credit Card Fraud?
Federal check and credit card fraud refers to the unlawful use of financial instruments — such as checks, credit cards, debit cards, or account numbers — to obtain money, goods, or services by deceit. These crimes become federal offenses when they involve interstate commerce, the U.S. mail, or electronic systems like the internet.
Credit card fraud may involve using a stolen or counterfeit card, trafficking in card numbers, or unauthorized use of access devices. Check fraud may include altering checks, using forged or stolen checks, or depositing fraudulent checks into personal or business accounts.
Prosecutors don’t have to prove you personally stole a card or wrote a fake check — only that you used or possessed fraudulent instruments with intent to defraud. Even minor losses or Missouri-only conduct can trigger federal charges if they involved federally regulated systems.
Is credit card fraud a federal felony? Yes. Most federal cases are charged as felonies, often carrying 10–20 years in prison depending on the facts and prior history.
What is the federal law for credit card fraud? The key statute is 18 U.S.C. § 1029, which prohibits various forms of access device fraud. Additional statutes cover bank fraud, wire fraud, and unauthorized card use across state lines.
Federal Statutes and Agencies Involved in Credit Card Fraud Cases
Federal credit card and check fraud charges often arise under statutes designed to protect the integrity of electronic transactions and financial systems. The most frequently used laws include:
- 18 U.S.C. § 1029 – Access Device Fraud: Covers use, trafficking, and possession of counterfeit or unauthorized cards, numbers, or codes with intent to defraud.
- 18 U.S.C. § 1344 – Bank Fraud: Involves attempts to defraud a financial institution or obtain money from it by false pretenses.
- 18 U.S.C. § 1343 – Wire Fraud: Applies when fraud is carried out via internet, email, or other wire communications.
- 15 U.S. Code § 1644 – Fraudulent Use of Credit Cards: Covers the transport or use of credit cards obtained through fraud, theft, or other illegal means across state lines or through interstate commerce.
Several federal agencies are involved in investigating and prosecuting these cases, including:
- U.S. Secret Service: Leads investigations involving credit card, debit card, and access device fraud.
- Federal Trade Commission (FTC): Enforces laws against consumer fraud, including identity theft and deceptive practices.
- U.S. Postal Inspection Service (USPIS): Handles fraud involving mailed checks, cards, or account data.
- Internet Crime Complaint Center (IC3): A joint effort by the FBI and National White Collar Crime Center to process cyber fraud reports.
These agencies often collaborate in multi-jurisdictional investigations, especially when activity crosses state lines or uses digital platforms.
Penalties for Federal Check and Credit Card Fraud in Missouri
Federal credit card and check fraud offenses are typically prosecuted as felonies and can lead to years in prison, substantial fines, and restitution orders. The penalties depend on the type of offense, the dollar amount involved, and whether the defendant has prior fraud convictions.
| Federal Statute | Maximum Penalty |
|---|---|
| 18 U.S.C. § 1029 – Access Device Fraud | Up to 10 years in prison (15 years for serious or repeat offenses) |
| 18 U.S.C. § 1344 – Bank Fraud | Up to 30 years in prison and up to $1 million in fines |
| 18 U.S.C. § 1343 – Wire Fraud | Up to 20 years in prison (30 years if involving financial institutions) |
| 15 U.S. Code § 1644 – Unauthorized Use of Credit Cards | Up to 10 years in prison and/or fines |
Repeat offenses, large-scale fraud schemes, or cases involving organized groups can result in enhanced sentencing under federal guidelines. A conviction may also lead to long-term consequences such as loss of employment, restitution payments, and damaged credit or reputation.
Federal Credit Card Fraud Defense Strategies in Missouri
Every federal fraud case is unique, but certain defense strategies regularly arise in check and credit card fraud cases. At Combs Waterkotte, our Missouri federal fraud attorneys assess the government’s evidence and build a tailored defense focused on your rights and freedom.
Lack of Intent
The government must prove that you knowingly intended to defraud. If you used a card or check without knowing it was stolen or forged — such as receiving a fraudulent gift card or being misled by someone else — this lack of intent can be a powerful defense.
Lack of Knowledge
Defendants may not realize the card or check was fraudulent. For example, you might have believed you were using a legitimate business or personal account. Showing your reasonable belief can counter the government's claim of criminal knowledge.
Duress
If you were coerced or threatened into participating in fraudulent conduct, you may have a valid duress defense. This is especially relevant in organized fraud rings or trafficking cases involving intimidation.
Improper Search or Seizure
Federal investigators must follow the law when collecting evidence. If they searched your home, devices, or bank records without a proper warrant or probable cause, our attorneys may seek to suppress the evidence and weaken the case against you.
Mistaken Identity or Lack of Evidence
In many digital fraud cases, it’s not always clear who made a transaction. We challenge the reliability of digital logs and surveillance, and push back if prosecutors can’t prove beyond a reasonable doubt that you were the one who committed the crime.
Plea Negotiations
In some cases, we can reduce charges or avoid prison through strategic plea negotiations. If the evidence is strong, focusing on lesser included offenses or restitution may yield a better outcome.
How do you defend against credit card fraud? Defenses often focus on lack of intent, mistaken identity, or illegal searches. The right approach depends on the specific facts of your case and the government’s evidence.
