Just what are Computer or Cyber-Crimes?

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Three years ago, a study by Barclays Bank estimated that the United States accounts for 47% of global credit card fraud.  Credit card fraud works something like this:  account numbers (or access devices) are obtained through sophisticated data breaches, or less sophisticated "skimmer" devices attached to gas pumps or ATMs.  Card numbers are downloaded and re-encoded onto "new" plastic card's magnetic stripes.  The fraudster loads-up on goods and services, racking up thousands of dollars in charges before the victim is aware his or her account has been compromised.

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The Federal Government prosecutes cases of identity theft by using several Federal laws. In 1988, Congress passed the Identity Theft and Assumption Deterrence Act (18 U.S.C. § 1028).

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This new law created a new federal offense of identity theft.  The law specifically prohibits the knowing transfer or use, without lawful authority, identifying information of another person with the intent to commit, or to aid another, any unlawful activity that is a violation of Federal law, or a felony pursuant to any State law.

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Applicable statutes

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Other Federal statutes generally associated with identity theft crimes are

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                                                                         (a) credit card fraud (18 U.S.C. § 1029);

                                                                         (b) computer fraud (18 U.S.C. § 1030);

                                                                         (c) mail fraud (18 U.S.C. § 1341);

                                                                         (d) wire fraud (18 U.S.C. § 1343);

                                                                         (e) financial institution fraud (18 U.S.C. § 1344).

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Can it get any worse? Yes, meet the § 1028A enhancement

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In addition the above, the Identity Theft Penalty Enhancement Act (18 U.S.C. § 1028A), set increased penalties for the crime of aggravated identity theft. The additional penalties apply to cases where identity theft has been used in the course of more serious crimes, (or "underlying offenses"), such as healthcare fraud, terrorist acts, mail fraud, wire fraud, and firearm violations.   Thus, a defendant can be facing additional incarceration when the government alleges that the defendant used another’s identifying information in the course of committing a separate Federal criminal offense.

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What the Feds have to prove

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Generally, the Government alleges that the accused person knowingly transferred, used, or possessed, without lawful authority the credit card or means of identification.  Moreover, since these cases involve the unlawful use of a person’s identifying information (such as Social Security number or driver license information), the defendant usually faces additional charges of Aggravated Identity Theft, which carries the stiff "1028A" enhancement, which means the defendant may face a consecutive, two years of prison after serving time for the substantive charge.

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