Federal Crime of Identity Theft – 18 U.S.C. § 1028
Identity theft is a serious federal crime that occurs when someone uses another person's identifying information without authorization for financial gain or to commit fraud or other illegal acts.
Federal identity theft cases typically involve sophisticated schemes, large financial losses, or criminal conduct that crosses state lines.
Under 18 U.S.C. § 1028, it is illegal to knowingly produce, transfer, possess, or use false identification documents or another person's identifying information with the intent to commit fraud.
These cases are often prosecuted in federal court and can result in significant prison sentences and financial penalties.
While many identity theft cases are prosecuted in state courts, federal authorities become involved when the scheme is large-scale, involves multiple victims, crosses state boundaries, or is connected to other federal crimes such as wire fraud, computer hacking, or financial fraud.
Under the Computer Fraud and Abuse Act (CFAA), federal prosecutors can charge an IT consultant, penetration tester, or competitive intelligence specialist with computer fraud if they access systems that the client explicitly authorized and the consultant genuinely believed were permitted.
Your best chance for a positive outcome is to work with an experienced California federal criminal defense attorney at Eisner Gorin LLP. To set up a consultation, call (818) 781-1570 or reach out to us here.
What Is Identity Theft Under Federal Law?
Federal identity theft occurs when someone unlawfully obtains and uses another person's personal identifying information to commit fraud, theft, or other crimes.
Personal identifying information may include:
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Social Security numbers
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driver's license numbers
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bank account information
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credit card numbers
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PIN numbers
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passport numbers
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dates of birth
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addresses and phone numbers
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medical or insurance identification numbers
Criminals often obtain this information through phishing scams, data breaches, computer hacking, or fraudulent online transactions.
Identity Theft and Assumption Deterrence Act
In response to the growing number of identity theft cases nationwide, Congress passed the Identity Theft and Assumption Deterrence Act of 1998.
This law amended 18 U.S.C. § 1028 to make identity theft a federal crime and gave federal agencies expanded authority to investigate identity theft schemes.
Under this Act, it is illegal to:
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knowingly transfer another person's identification
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possess false identification documents
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use someone else's identity to commit fraud
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attempt or assist in identity theft schemes
Because identity theft often involves interstate transactions or online communications, many cases fall under federal jurisdiction and are prosecuted in United States District Courts.
Common Types of Federal Identity Theft Schemes
Federal identity theft cases often involve complex financial fraud schemes. Common examples include:
Internet Identity Theft
Criminals use stolen credit card numbers or personal information to make unauthorized online purchases.
Credit Card Fraud
Fraudulent applications or counterfeit credit cards may be created using stolen personal data.
Bank Account Fraud
Identity thieves may open bank accounts or obtain loans using another person's identity.
Government Benefits Fraud
Some schemes involve stealing Social Security numbers to obtain government benefits.
Check Forgery
Criminals may forge signatures on checks or use stolen financial information to create fraudulent checks.
These crimes frequently overlap with other federal offenses such as wire fraud and mail fraud.
Federal Agencies That Investigate Identity Theft
Federal identity theft investigations are often handled by specialized law enforcement agencies.
Common agencies involved include:
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Federal Bureau of Investigation (FBI)
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United States Secret Service
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Internal Revenue Service Criminal Investigation Division (IRS-CI)
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Department of Justice (DOJ)
These agencies frequently work with state and local law enforcement through task forces focused on financial crimes and cybercrime.
Aggravated Identity Theft – 18 U.S.C. § 1028A
In 2004, Congress enacted the Identity Theft Penalty Enhancement Act, which created the federal offense of aggravated identity theft.
Under 18 U.S.C. § 1028A, a person who knowingly uses another person's identity in connection with certain felony crimes may face additional mandatory prison time.
Examples of crimes associated with aggravated identity theft include:
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wire fraud
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bank fraud
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immigration fraud
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theft of Social Security benefits
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terrorism-related offenses
If convicted of aggravated identity theft, federal law requires the court to impose a mandatory two-year prison sentence in addition to the sentence for the underlying felony offense.
If the identity theft is connected to terrorism-related offenses, the mandatory sentence increases to five years in prison.
These sentences must run consecutively, meaning they are added to the sentence for the related crime.
Penalties for Federal Identity Theft – 18 U.S.C. § 1028
The penalties for identity theft depend on the nature of the offense and the related criminal activity.
Possible penalties include:
Standard Identity Theft Offenses
Producing or transferring false identification documents or possessing equipment to create them may result in:
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up to 15 years in federal prison
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substantial criminal fines
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restitution to victims
Identity Theft Connected to Other Crimes
If the offense is connected to drug trafficking, violent crimes, or repeat identity theft offenses, the penalty may increase to:
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up to 20 years in federal prison
Identity Theft Related to Terrorism
Identity theft connected to domestic or international terrorism can result in:
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up to 30 years in federal prison
Federal courts also impose fines, restitution, and asset forfeiture in many cases.
Frequently Asked Questions
What is federal identity theft?
Federal identity theft occurs when someone uses another person's identifying information to commit fraud or other crimes, especially when the activity crosses state lines or involves large financial losses.
What information is considered identifying information?
Identifying information includes Social Security numbers, driver's license numbers, bank account numbers, credit card information, dates of birth, addresses, and other personal data used to identify a person.
What is aggravated identity theft?
Aggravated identity theft occurs when someone uses another person's identity while committing certain federal felony crimes. This offense carries an additional mandatory prison sentence.
Can identity theft be charged in federal court?
Yes. Identity theft may be prosecuted in federal court when the crime involves interstate activity, online transactions, large financial losses, or connections to other federal offenses.
Which agencies investigate federal identity theft?
Federal identity theft investigations are typically handled by the FBI, Secret Service, IRS Criminal Investigation Division, and the Department of Justice.
Fighting Federal Identity Theft Charges
If you are under investigation for identity theft, it is critical to seek legal representation immediately. Federal investigations often involve extensive financial records, digital evidence, and multiple law enforcement agencies.
An experienced federal criminal defense attorney can:
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analyze the evidence collected by investigators
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challenge unlawful searches or seizures
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negotiate with federal prosecutors
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develop a strategic defense to reduce or dismiss charges
Early legal intervention can sometimes prevent charges from being filed or significantly reduce potential penalties.
Eisner Gorin LLP is available to assist you. Book your consultation today.