Articles Posted in Fraud

file9961246478372The highest courts in the USA have considered this question and apparently found that to some extent the answer is no. Specifically, the higher courts objected to some of the provisions as they relate to identity theft and the constitutional rights of defendants. The Illinois Supreme Court consequently overturned a key provision of the state identity theft statute. The key contention was that this provision was effectively criminalizing conduct that would otherwise not be considered to be criminal. The case in question involved a Google search in where there was no evidence of criminal intent.  The internet has opened up so many opportunities but also a series of legal nightmares for the profession, particularly with regards to the world of social media, which seems to require laws unto itself. Consequently, there is a genuine fear about the escalating practice of identity theft. The state legislators felt that they had to act even at the expense of civil liberties.

Overkill in Regulating Internet Activity

As is often the case in legal cases, the cure can be as painful as the disease. The innocent end up suffering at the hands of lawmakers who are not as comfortable with new media as they ought to be. The temptation is to ban everything or alternatively to give room for suing over nothing. In the People v Madrigal, No 110194, 2011 WL 1074427 (Ill Sup Ct), the defendant successfully convinced the Illinois Supreme court that the law had become an unfair burden. Specifically, section 16G-15(a) (7) of the Identity Theft Law (720 ILCS 5/16G–1 et seq.) indicated that a criminal offense occurs if a person uses the identity of another in order to gain access to information online without the permission of the person whose identity is being used. The act is clear enough when it comes to criminal activity that involves overstepping identity verification procedures through impersonation in order to commit a crime. However the position is less clear if no criminal purpose is intended.

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A combination of two ultimate fraud charges, identity theft and counterfeiting, resulted in a major potential felony bomb threat at the Midway Airport. All of these elements came to light when a Chicago woman attempted to smuggle counterfeit and stolen credit/debit cards out of the state, and ended up as what the authorities thought was a bomb threat. See DNAinfo Chicago.

The Identity Theft Incident, Now a Major Crime

Prior to 1998, identity theft was not considered a major crime. Identity theft and identity fraud is pretty much the same thing. This is a crime where one person obtains and uses the personal information of a victim to advance his or her own personal gain. The personal information used, such as birth date, social security number, etc., allows the perpetrator to pose as the victim for the purpose of obtaining a loan, buying merchandise or obtaining credit in the victim’s name. This fraud has far reaching consequences for the victim, because once the identity has been used, to run up credit debt, or for criminal activity, they will have major problems in trying to restore their good name.

Illinois takes all types of fraud seriously, and if you are being charged with credit card fraud, you may be facing a lengthy jail sentence. It is important to understand just what credit card fraud is and what to do if you are charged with that crime.

What is Credit Card Fraud in Illinois?

Under Illinois law, there are several crimes that are considered credit card fraud, including:

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