Credit Card Fraud in Arizona: What You Need to Know

Credit card fraud serves as an umbrella term under Arizona law. Many different forms of criminal activity fall under this classification, including obtaining a credit- or other payment card unlawfully, using a credit card without the owner’s permission and identity theft. Arizona considers theft of a credit card and the illegal use of one over $250 as felonies, which require prison time unless the charges are reduced.

In addition, a case of credit card fraud may involve other charges. For example, a defendant may face credit card theft and more serious identity theft charges in the case involves more than simply misusing a credit card but also attempts to open multiple fraudulent accounts under another person’s name.

Fraudulent Use of a Credit Card Vs. Theft of a Credit Card

A person commits misdemeanor fraudulent use of a credit card when he or she obtains or attempts to obtain money, goods or services worth less than $250. Stolen credit card numbers also count under the statute, as well as the knowing use of a credit card that is forged, expired, cancelled or revoked.

The offense is a Class 1 misdemeanor, the highest non-felonious designation. Convictions carry a maximum penalty of six months incarceration and up to $2,500 in fines. Probation is a possibility, as is a plea bargain reducing charges to a less serious misdemeanor.

If the value exceeds $250 but is less than $1,000 over a consecutive six-month period, law enforcement will charge the offense as a Class 6 felony. An Arizona Class 6 felony carries a maximum two-year prison sentence, with a presumptive sentence of one year. The law requires judges impose the presumptive sentence unless there are aggravating or mitigating circumstances to justify a higher or lower term.

All Arizona felonies carry a potential fine of $150,000, in addition to other financial sanctions.

The crime becomes a Class 5 felony when the value exceeds $1,000 in a consecutive six-month period. An Arizona Class 5 felony carries a presumptive sentence of two years incarceration. Aggravated Class 5 felonies require a 2 ½ year prison sentence, while a term of less than two years is possible with mitigating circumstances.

Theft of a credit card is a Class 5 felony, regardless of whether it was used or not. The central issue is if the credit card was taken without the cardholder’s consent with the intent to defraud.

It is possible to have a Class 5 felony reduced to a Class 6 or even a misdemeanor, which can save defendants many months or incarceration and thousands of dollars in fines.

The Elements of a Credit Card Fraud Case

The constitution requires prosecutors prove their case beyond a reasonable doubt. To meet this standard in Arizona courts, they must prove all the elements of a credit card fraud case and also overcome any affirmative defenses.

There are three circumstances where credit card fraud is charged, and each has its own elements that must be proven.

The first circumstance is the unauthorized use of a credit card. To obtain a conviction, prosecutors must prove that the defendant fraudulently obtained, took, signed, used, sold, bought or forged someone else's credit- or debit card. For example, a surveillance video of the defendant making the illegal charge could establish this. The state must also overcome an affirmative defense, such as the defendant’s assertion that the cardholder gave permission for the card’s use.

The second circumstance occurs when a person uses their own card with the knowledge that it had been revoked, was expired or that funds were insufficient for the purpose. For example, a person could use a debit card to make a purchase knowing that his or her checking account would overdraw as a result. This can be tough to prove because an affirmative defense of not realizing the account would go negative can be explained as a commonplace error.

The third circumstance involves selling goods or services to someone with the knowledge that the credit or debit card was illegally obtained or is being charged without authorization. For example, a person could accept cash in exchange for goods knowing that it was fraudulently obtained from a stolen debit card. Of course, there are many situations where the seller would have no means to know a stolen card was being used.

Identity Theft

One of the worst things that can happen to credit card fraud defendants is to face indictment for identity theft. Under Arizona law, identity theft occurs when a person steals another’s private information in order to commit fraud, essentially pretending to be someone else to obtain money or goods. Identity thieves often steal credit card information, social security numbers or banking data to open fraudulent accounts. Often, the identity thieves will apply for credit cards, run the balance up to the credit limit and then go on to open other accounts. In some cases, they may even succeed in buying cars and other big-ticket items using another person’s identity.

Arizona has passed a law classifying identity theft as Class 4 felony. The presumptive sentence is two- and one-half years, but the judge is free to add more time for particularly egregious cases.

Simple credit card theft and identity theft are separate crimes, but often an arrest for credit card fraud leads to an investigation into possible cases of identity theft. Because identity thieves tend to open multiple fraudulent accounts, counts can add up quickly, leaving the defendant facing serious prison time.

Identity theft can also lead the federal charges. Often, identity thieves cross state lines, both physically and electronically, to steal private data and open fraudulent accounts. When caught, the end result can be federal charges and time in federal prison, where sentences are harsher and there is no parole (though time off for good behavior is possible).

Credit- and debit card fraud can easily land you in jail and lead to large fines. When identity theft is involved in obtaining the card(s), the potential prison time greatly increases. Though courts may offer some leniency to first-time, low-level offenders, habitual fraudsters and identity thieves face hard time in an Arizona prison.