Legal Definitions - credit-card crime

A credit-card crime is a legal offense that occurs when someone uses a credit card to make a purchase, knowing that they do not have the legal authority or right to use that card. This includes situations where the card has been stolen, counterfeited, officially canceled, or when the person simply lacks permission from the legitimate cardholder to use it for that specific transaction.

Here are some examples illustrating different scenarios of credit-card crime:

• Example 1: Using a Stolen Card

  Imagine someone finds a wallet dropped on the sidewalk. Instead of attempting to return it, they take the credit card inside and immediately use it to buy a new smartphone at an electronics store. The individual knows the card belongs to someone else and was not given permission to use it.

  This illustrates a credit-card crime because the person used a credit card for a purchase with the knowledge that the card was stolen and its use was unauthorized by the rightful owner.

• Example 2: Using a Canceled Card

  A person's bank sends them a notification stating that their credit card account has been closed due to repeated late payments. Despite receiving this clear communication, the individual attempts to use the canceled card to pay for a hotel room online, hoping the transaction will still go through.

  This is a credit-card crime because the individual knowingly attempted to use a credit card that had been officially canceled and was no longer valid for purchases.

• Example 3: Unauthorized Use by an Acquaintance

  A college student asks a friend if they can borrow their credit card to buy a specific textbook online, promising to pay them back immediately. The friend agrees, but the student then uses the card to make several additional, expensive online purchases for video games and clothing without their friend's knowledge or permission.

  This demonstrates a credit-card crime because, even though the card wasn't stolen, the student exceeded the specific authorization given by the cardholder, making the subsequent purchases unauthorized and illegal.