As we start opening our January credit card statements and bank statements, some of us will have a double surprise. Not only will we see how much money we spent during the Holiday season, some of us will notice a far scarier situation: we’ve been the victim of fraud Each year, the FBI warns consumers about the increase in fraudulent scams during the holidays. Law enforcement officers in Connecticut are on careful watch for fraud crimes throughout the holiday season and ready to arrest anyone suspected of a fraud scheme. These cases can be complex, however, and wrongful allegations are common.
Types of Fraud Schemes
“Fraud” is a general term that can be applied to a wide variety of schemes and actions. Fraud can involve a one-time incident by one person or a long, complex, and ongoing scheme involving many people. The following are only a few of many possible examples of common fraud schemes during the holidays:
Card fraud – Fraudulently obtaining debit, credit, and gift card information is a common scheme for fraudsters. Card stripping, using scanners, and hacking are all methods of obtaining digital information from unknowing cardholders. Phishing schemes can also be used, and a new trend has emerged of creating fake payment apps or websites where consumers may enter their card information. Fraudsters can then either use the card numbers to make purchases or sell the card numbers to other fraud operations.
Data breaches – The retail business experiences a boom every holiday season, as millions of customers swipe their cards, sign up for rewards or credit programs, or provide personal information for other reasons. While all of this information is supposed to be kept confidential, hackers regularly gain access to all the data in large retailers’ files, which can expose millions of people to identity theft or other types of fraud.
Return fraud – Many retailers are in a frantic state from Black Friday until the week after Christmas. Stores are crowded, shelves are constantly being stocked, and inventory can be in disarray. Some people take this opportunity when employees are distracted to engage in return fraud. False returns can be made by shoppers or employees alike, and these schemes can result in extensive losses for retailers.
Fake charities – The holidays are often a time for generous giving, and many people wait until the holidays to make their charitable donations. In addition, charitable donations must be made by the end of the year to count as deductions on that year’s tax returns. This makes December an optimal time for charity fraud. Charity scams can be conducted via email or phone campaigns and can result in people giving their money away to nonexistent or fraudulent charities that operate only to line the pockets of criminals.
Connecticut Criminal Fraud Laws
“Fraud” is an element of many different types of white-collar crimes. Whenever a person obtains money or property in a fraudulent manner, a criminal charge can result. Such charges can include:
- Theft
- Identity theft
- Credit card crimes
- Insurance fraud
- Mortgage fraud
- Bank fraud
- Fraudulent use of an ATM
Criminal offenses regarding credit cards are some of the most common types of charges to arise from holiday-season fraud. There are several acts involving credit cards that are prohibited under Connecticut’s Penal Code,2 including the following:
- Taking someone’s else’s credit card without permission, with the intent to use it or sell it
- Receiving and keeping a card with the knowledge it has been mistakenly delivered to you, and with the intent to use it or sell it
- Selling or buying a card from someone other than the cardholder
- Forging a false credit card with the intent to use the card to defraud someone
- Providing false or stolen information on a credit-card application.
Credit-card crimes are generally charged as a Class A misdemeanor or a Class D felony in Connecticut, depending upon the offense in question and the amount of money that was misappropriated. Fortunately, there are many ways to defend against allegations of credit-card fraud or other fraud crimes, and an experienced criminal defense attorney can help protect your rights and limit the penalties you face.
If you are arrested on suspicion of fraud offenses during the holidays or at any other time, please don’t hesitate to call fraud defense lawyers Bruce Koffsky and Audrey Felsen. Koffsky & Felsen, LLC regularly represents clients facing both Connecticut and federal fraud charges, so please contact us if you need more information.
https://www.cga.ct.gov/current/pub/chap_952.htm#sec_53a-128a
