Credit Card Fraud: The Neglected Crime

Abstract

This article examines the present state of credit card fraud. Several factors explain the enormous rise in credit card fraud. First, the increased use of credit cards contributes to increased credit card fraud. Increased card usage, however, accounts for only a portion of the escalation of credit card fraud because card fraud is growing considerably faster than overall card usage. Second, the ease with which an individual can commit credit card fraud contributes to the problem. Potential criminals can obtain credit cards or account numbers and know that a cardholder cannot easily detect this fraud. A variety of people regularly handle others' credit cards or account numbers, therefore, a cardholder has difficulty identifying the thief. Third, not only does credit card fraud usually remain undetected until long after the criminal has completed the crime, but also law enforcement efforts are lax. Law enforcement agencies have paid little attention to this genre of crime. Thus, these agencies are partially responsible for the growth in credit card fraud. Finally, although these factors all contribute to the problem of credit card fraud, inadequate state and federal laws are the biggest reason for the success of credit card fraud. As this Comment will demonstrate, prosecutors litigate organized fraud schemes primarily at the federal level which is where the weaknesses in the laws have been the most glaring.