Federal Credit Card Fraud and Access Device Crimes

18 U.S.C. § 1029 – Federal Credit Card Fraud Defense Lawyer

Federal credit card fraud charges under 18 U.S.C. § 1029 are serious felony offenses that can carry up to 10–15 years in federal prison, substantial fines, restitution, and forfeiture of assets.

Although many credit card fraud cases are prosecuted at the state level, federal authorities assert jurisdiction when the conduct involves interstate commerce, electronic communications, identity theft, or organized schemes.

Because nearly all modern financial transactions cross state lines or involve digital systems, many cases quickly become federal matters.

If you are under investigation or charged with federal credit card fraud, early intervention by an experienced federal criminal defense attorney can significantly affect the outcome of your case.

Your best hope for a favorable outcome is with a defense attorney at Eisner Gorin LLP in Los Angeles. To schedule a consultation, call (818) 781-1570 or contact us here.

What Is Federal Credit Card Fraud Under 18 U.S.C. § 1029?

18 U.S.C. § 1029 criminalizes fraud involving “access devices.”

An access device includes:

Credit cards
Debit cards
Gift cards
Account numbers
PIN numbers
Electronic serial numbers
Other tools used to obtain money, goods, or services

The statute makes it illegal to knowingly and with intent to defraud:

Use or traffic in counterfeit access devices
Possess 15 or more unauthorized access devices
Use skimmers or scanning equipment
Possess device-making equipment
Obtain $1,000 or more within one year using counterfeit devices
Sell or solicit fraudulent access devices

Federal credit card fraud is often referred to as “access device fraud.”

Common Types of Federal Credit Card Fraud

Identity Theft-Based Fraud

Using another person’s identity to open credit accounts or obtain financial benefits may trigger both § 1029 and aggravated identity theft charges under 18 U.S.C. § 1028A.

Skimming and Scanning Devices

Installing skimming devices on:

Gas pumps
ATMs
Retail terminals

to capture card data is a common basis for federal prosecution.

Phishing and Online Fraud

Modern schemes frequently involve:

Phishing emails
Fake websites
Malware installation
Hacking retail databases
Intercepting transactions over unsecured networks

Because these activities typically involve electronic communications, prosecutors often add wire fraud charges.

Counterfeit Card Production

Manufacturing or trafficking counterfeit credit cards or device-making equipment may result in enhanced penalties.

Possession of Multiple Unauthorized Cards

Even if no purchases were completed, possession of 15 or more unauthorized access devices can support a federal charge.

Related Federal Charges Often Filed With § 1029

Federal credit card fraud cases frequently include additional charges such as:

18 U.S.C. § 1028 – Identity Theft
18 U.S.C. § 1028A – Aggravated Identity Theft (mandatory consecutive 2 years)
18 U.S.C. § 1343 – Wire Fraud
18 U.S.C. § 1341 – Mail Fraud
18 U.S.C. § 1344 – Bank Fraud
18 U.S.C. § 1956 – Money Laundering

Stacked charges significantly increase sentencing exposure.

What Must the Government Prove?

To convict under 18 U.S.C. § 1029, prosecutors must prove:

You knowingly used, possessed, or trafficked an unauthorized access device;
You acted with intent to defraud;
The conduct affected interstate or foreign commerce;
The value threshold (if applicable) was met.

Intent to defraud is often the most heavily litigated issue.

Federal Penalties for Credit Card Fraud

Penalties depend on the subsection charged.

Potential exposure includes:

Up to 10 years in federal prison for certain offenses
Up to 15 years for enhanced offenses
Fines up to $250,000
Restitution to victims
Asset forfeiture

If aggravated identity theft is charged, a mandatory 2-year sentence must run consecutively to any other sentence.

Federal Sentencing Guidelines consider:

Loss amount
Number of victims
Sophisticated means
Role in the offense
Criminal history

Loss calculations can dramatically increase advisory guideline ranges.

Why Federal Authorities Take Credit Card Fraud Seriously

Federal agencies argue that access device fraud:

Undermines financial institutions
Disrupts interstate commerce
Impacts national banking systems
Funds organized criminal networks

Because financial transactions routinely cross state and national borders, jurisdiction is often clear.

Common Defense Strategies

An indictment is not a conviction. Strong defenses often focus on intent, knowledge, and constitutional issues.

Lack of Intent to Defraud

The government must prove you knowingly intended to deceive.

Possible defenses include:

Lack of knowledge that the cards were unauthorized
Innocent possession
Mistaken belief of authorization
Absence of fraudulent intent

No Interstate Commerce Nexus

Federal jurisdiction requires an effect on interstate or foreign commerce.

In limited cases, challenging the federal nexus may reduce or shift the prosecution.

Reasonable Belief of Authorization

If you reasonably believed you had permission to use the card, this may negate intent.

Suppression of Evidence

If law enforcement violated your constitutional rights during searches or seizures, key evidence may be excluded.

Frequently Asked Questions

Is credit card fraud a federal crime?

Yes. When the conduct affects interstate commerce or involves access devices under 18 U.S.C. § 1029, it may be prosecuted federally.

What is an “access device”?

An access device includes credit cards, debit cards, account numbers, PINs, and related tools used to obtain money or goods.

Can I be charged even if I didn't make a purchase?

Yes. Possession of 15 or more unauthorized access devices alone can support a federal charge.

What is the maximum sentence for federal credit card fraud?

Depending on the subsection, penalties range from 10 to 15 years in federal prison, plus fines and restitution.

Can federal credit card fraud charges be dismissed?

Yes. Many cases hinge on proof of intent, disputes over loss amounts, and the admissibility of digital evidence.

What To Do If You Are Under Investigation

If federal agents contact you:

Do not make statements without counsel
Do not attempt to delete digital evidence
Preserve records
Contact an experienced federal criminal defense attorney immediately

Early defense strategy can influence charging decisions and negotiation leverage.

Speak With a Federal Credit Card Fraud Defense Attorney

Federal credit card fraud prosecutions are complex, technical, and aggressively pursued. A conviction can lead to incarceration, financial penalties, and long-term professional consequences.

If you are under investigation or facing charges under 18 U.S.C. § 1029, seek experienced federal defense counsel immediately to protect your rights and future.

Eisner Gorin LLP is here to help. Schedule your consultation at (818) 781-1570 or contact us here. Our law firm is based in Los Angeles.

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