Credit Card Theft and Fraud Lawyer for Charges under Section 342 of the Criminal Code (2024)

Credit card thefts and frauds are codified in the Criminal Code under Section 342 and include both stealing and using the credit card itself (S. 342 (1)) and unauthorized use of credit card data (S. 342 (3)).

A common form of Fraud is when an individual uses someone else's credit card for purchases without their permission. This usually follows a theft resulting from intentionally taking the card from someone's wallet or purse. Oftentimes the accused simply found a purse or wallet that was lost and instead of returning it to the owner or the Police they keep it for themselves and use its contents.

Theft from normal, everyday people is generally considered more serious than theft from stores (absent aggravating factors such as the person being employed there). In cases where lost property is taken and used it is usually an innocent third party that suffers the loss. The victim in these types of cases is often just an everyday person who was unfortunate enough to misplace or mistakenly leave behind their property.

When the finder of that property exploits this by trying to fraudulently enrich themselves this is viewed as highly aggravating by the Crown Attorney (Prosecutor) and the courts in Ontario, Canada. Cases where the theft was premeditated and planned (stolen from a locker, bag, etc.) are considered even worse.

Often a large amount of police work has to go into tracking down and charging the accused

Another reason these cases are heavily prosecuted is because it can take quite a bit of police resources to track down the suspect. Often the police must attend at businesses where the fraudulent purchases took place, obtain and review CCTV footage, and try to figure out the identity of the accused using motor vehicle/licence plate/driver's license searches or even by going to the public to help identify the individual. This takes a significant amount of time and effort in many cases prior to the charges being laid.

Punishments and Consequences for first time offenders in Canada

The definition of the crime and its maximum punishments are found in Section 342 of the Criminal Code. The Code states if the accused is found guilty of credit card fraud or theft they can be sentenced to up to 6 months in jail if the Crown Attorney proceeds summarily or 10 years in prison if the Crown Attorney proceeds by indictment.

Lengthy jail sentences are more likely for accused who have previous arrest records or in high value cases. For most

first time offenders

, the Crown will normally ask the Judge to impose a short jail sentence or probation combined with a criminal record. Getting a criminal record for fraud would have a devastating effect on the accused as it can prevent them from obtaining employment and from travelling to the US.

Credit card fraud is sometimes a crime of random opportunity and temptation

While some forms of credit card fraud/theft are crimes of highly premeditated dishonesty, in other cases it is the result of a random find leading to temptation and a bad decision in the moment. Many of us have grown up with a "finders keepers, losers weepers" mentality, but the criminal law deems taking and using things you do not own as theft. Just because you find someone's bike, hat, wallet, etc. doesn't make you the owner of that property.

FAQs

What is your liability when your card is charged fraudulently? ›

What To Do If Credit Card Theft Happens to You. In the event that your credit card is stolen in the United States, federal law limits the liability of cardholders to $50, regardless of the amount charged on the card by the unauthorized user.

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Who pays for CC fraud? ›

The bank that issues the credit card will cover most credit card fraud issues, but sometimes the bank rules that it is merchant credit card fraud, making the merchant responsible. Small business owners using outdated swipe payment terminals may have to make up for the difference.

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What is the CA Penal Code for credit card fraud? ›

Penal Code 484g PC makes it a crime to use a credit card to obtain goods or services knowing the card is fake, forged, expired, or belongs to another person.

What is the maximum amount you are liable for unauthorized charges? ›

You can also ask for a written explanation or proof of purchases. Remember that federal law limits your liability for unauthorized charges to $50.

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How much can you be liable for if your credit card is stolen and used? ›

Under the Fair Credit Billing Act (FCBA) your maximum liability for unauthorized charges is $50. For instance, if someone makes $100 in fraudulent charges with your card, you can only be required to pay $50.

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Can police do anything for credit card frauds? ›

Yes, the police handle credit card fraud, especially for cases in which the fraud is extensive, involves a larger criminal scheme or requires criminal investigation and potential prosecution. Their involvement typically follows reports from banks, victims, or credit card companies.

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Is credit card fraud ever prosecuted? ›

Federal Law. Certain federal credit or debit card fraud laws focus on interstate and foreign commerce. These federal crimes make it illegal to use a stolen or fraudulently obtained credit or debit card. These are felony charges, and the penalties may include up to 10 years in prison and fines of up to $10,000.

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Who ultimately pays for credit card fraud? ›

In short, consumers are rarely liable for credit card fraud. The merchant that processed the transaction or the bank that issued the card is usually liable for the charge. If your business has fallen victim to processing fraudulent transactions, you need to read this guide.

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What are my rights with credit card fraud? ›

The FCBA limits a consumer's liability for unauthorized use of his or her credit card to $50. Fraud involving an ATM or debit card is covered by the Electronic Fund Transfer Act (EFTA). A consumer is not responsible for any charges made on an ATM or debit card if he or she reports it lost or stolen before it is used.

What happens to the person who stole my credit card? ›

Federal penalties for using a "device" to commit fraud (the law defines a credit card as such a device) can include up to 20 years in prison, plus fines and forfeiture of personal assets.

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What is the crime name for credit card fraud? ›

The offenses described as "credit card fraud" may include the following crimes: California Penal Code Section 484e PC (stolen credit cards) - This crime involves selling, transferring, acquiring or otherwise possessing the credit card or credit card information of another person without that other person's consent.

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What is the section for credit card fraud? ›

Section 66C and 66D of IT ACT, 2000 and also the provision of section 468/471 IPC,1860 may be attracted to whoever tries to commit credit card fraud.

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Do police investigate debit card theft? ›

The police can then investigate the matter and potentially file felony charges against the culprit. If the thief is found and convicted, the judge can order that the thief pay victim restitution; or. Filing a civil lawsuit. The victim can sue the thief for theft and fraud.

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What is the liability for unauthorized transactions? ›

There are three possible tiers of consumer liability for unauthorized EFTs depending on the situation. A consumer may be liable for: (1) up to $50; (2) up to $500; or (3) an unlimited amount depending on when the unauthorized EFT occurs.

Is $0 liability on unauthorized charges? ›

What Is a Zero Liability Policy? A credit or debit card's zero liability policy means the cardholder is not liable or financially responsible for unauthorized charges in most cases. Credit card issuers typically provide stronger protection, though terms may vary. Many debit cards offer zero liability as well.

What happens if my card is fraudulently used? ›

My credit card has been used fraudulently

If someone makes unauthorised payments on your credit card, you're covered under the Consumer Credit Act. This means you should be able to claim your money back as you're jointly liable with your credit card issuer.

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What happens to the merchant when you dispute a charge? ›

When a cardholder disputes a transaction, the bank initiates a chargeback and contacts the merchant providing a reason code for the dispute. The merchant then has the option to either accept the dispute and the associated losses or fight the chargeback by providing evidence that the transaction was valid.