In today’s world, we use credit cards, debit cards, and online payments for almost everything. But this convenience also creates opportunities for crimes involving what North Carolina law calls “Financial Transaction Cards” (FTCs). Being accused of stealing a card, using someone else’s card number without permission, or running up charges you can’t pay can lead to serious criminal charges with lasting consequences. If you’re facing these accusations in Greensboro, Winston-Salem, High Point, Burlington, or anywhere nearby, you need to understand the law and your rights.
Maybe it was a misunderstanding, maybe you were trying to help someone, or maybe you made a mistake under pressure. Whatever the situation, FTC theft and fraud charges are taken very seriously by prosecutors in North Carolina. Here at Huggins Law Firm, our team understands how easily these situations can arise and how damaging the consequences can be. We have years of experience defending people against all types of Criminal Law charges, including financial crimes. We’re here to help you understand the charges and build a strong defense.This page explains North Carolina’s laws on Financial Transaction Card theft and fraud. For a general overview of other related crimes, please see our main guide: Understanding White Collar & Financial Crimes in North Carolina.
What’s the Difference Between FTC Theft and FTC Fraud in NC?
North Carolina law makes a distinction between possessing or taking a card illegally (Theft) and actually using a card or its information fraudulently (Fraud).
Financial Transaction Card Theft (NC General Statute § 14-113.9): This crime focuses on illegally obtaining or possessing the card itself or the card information. You could be charged with FTC Theft if you:
- Take or keep someone else’s credit/debit card without their permission.
- Receive a card knowing it was lost, mislaid, or delivered to the wrong person.
- Buy or sell someone else’s card or card information.
- Possess two or more cards issued to different people, knowing they were stolen or illegally obtained.
- Make or possess counterfeit FTCs.
Financial Transaction Card Fraud (NC General Statute § 14-113.13): This crime focuses on using the card or card information with the intent to defraud to get something of value (money, goods, services). You could be charged with FTC Fraud if you:
- Use a card (or card number) knowing it’s stolen, forged, expired, or revoked.
- Use someone else’s card number online or over the phone without their permission.
- Use your own card knowing you don’t have sufficient funds or credit and don’t intend to pay.
- Falsely represent yourself as the cardholder.
Essentially, Theft is about having the illegal card/info, and Fraud is about using it to deceive someone. You can often be charged with both if you steal a card and then use it.
How Serious Are Credit Card Theft and Fraud Charges in North Carolina?
The penalties depend heavily on the specific actions taken and, often, the value of the goods, services, or money obtained (or attempted to be obtained) within a six-month period. The charges can range from misdemeanors to serious felonies:
- Misdemeanors: Some forms of simple possession of a stolen card or obtaining smaller values (e.g., under $500 in some circumstances, though check the latest statute version) might be charged as Class 1 or Class 2 misdemeanors.
- Felonies: Many FTC offenses are felonies, often ranging from Class I (lowest level) up to Class F or G (more serious). Factors that increase the severity include:
- Obtaining larger dollar amounts (often thresholds like $500 or $1,000 within six months).
- Possessing multiple stolen cards from different people.
- Making or trafficking counterfeit cards.
- Having prior convictions for similar offenses.
Potential Penalties: Even a lower-level felony conviction can result in:
- Active jail or prison time (months or years depending on class and prior record).
- Significant fines.
- Mandatory restitution (paying back the victim/card company).
- Supervised probation.
- A permanent felony record, making it hard to get jobs, housing, or loans.
A Less-Common Stat: While we often think of fraud involving big purchases, a surprisingly common type is “small-dollar” fraud used to test stolen card numbers. Fraudsters may make tiny online purchases (like $1) to see if a stolen card number is active before attempting larger transactions. Also, the rise of “buy online, pick up in-store” (BOPIS) has created new avenues for fraud, as criminals using stolen card info can sometimes bypass stricter shipping address verification checks. ([Source: Reports from retail security organizations or fraud prevention services often detail these trends]). These small acts can still lead to serious felony charges if part of a pattern or involving multiple cards.
What Does “Intent to Defraud” Mean in an FTC Fraud Case?
Similar to forgery, proving intent to defraud is absolutely critical for the prosecutor in an FTC Fraud case (NCGS § 14-113.13). They must show you didn’t just use the card, but you did so knowing you weren’t authorized or didn’t have the funds, and you intended to deceive the merchant or bank to get something you weren’t entitled to.
This is a key area for your defense lawyer to attack.
- Did you have permission (or reasonably believe you had permission) to use the card? (Maybe a family member gave you their card for a specific purpose that was misunderstood).
- Was it an honest mistake? (Maybe you grabbed the wrong card from your wallet, or didn’t realize your account was overdrawn).
- If accused of using your own card without sufficient funds, could you show you intended to pay or believed you had the funds/credit available at the time?
Lack of fraudulent intent can be a powerful defense. Your lawyer will examine the specific circumstances to see if the evidence truly supports intentional deception.
How Can a Lawyer Defend Against FTC Theft or Fraud Charges in North Carolina?
If you’re facing charges related to Financial Transaction Cards in Greensboro, Winston-Salem, or surrounding areas, having an experienced criminal defense lawyer is vital. Here are some potential defense strategies:
- Lack of Intent (for Fraud): As discussed above, arguing you didn’t intend to deceive is often central.
- Authorization/Permission: Proving you had consent from the cardholder to possess or use the card.
- Mistaken Identity: Can the prosecution prove you were the one who possessed the stolen card or made the fraudulent purchase? Was there clear video evidence? Were you mistakenly identified?
- Illegal Search and Seizure: If police found the card or other evidence during an illegal search of your person, car, or home, your lawyer can file a motion to suppress that evidence.
- Insufficient Evidence: Does the prosecution have enough evidence to prove every element of the crime beyond a reasonable doubt? Are there gaps in their case?
- Value Disputes: Challenging the prosecution’s calculation of the value obtained can sometimes mean the difference between a felony and a misdemeanor charge.
- Negotiation: Your lawyer may be able to negotiate with the prosecutor for reduced charges or alternative resolutions like a deferred prosecution, especially for first-time offenders or cases with mitigating circumstances.
A lawyer familiar with the local courts in Guilford, Forsyth, Alamance, or Randolph counties will understand how these cases are typically handled and can build the best defense for your specific situation.
Key Takeaways for North Carolina FTC Theft & Fraud Charges
- FTC Theft involves illegal possession of cards/info; FTC Fraud involves illegal use with intent to defraud.
- Charges range from misdemeanors to serious felonies based on value and specific actions.
- Penalties include potential jail, fines, restitution, and a permanent criminal record.
- Proving intent to defraud is crucial for most FTC Fraud charges.
- Defenses often involve lack of intent, authorization, mistaken identity, or illegal searches.
- These charges are common and aggressively prosecuted.
- Do not discuss the charges with police without your lawyer.
- Contacting an experienced NC criminal defense lawyer immediately is critical.
Call to Action:
Accusations of credit card theft or fraud can have serious repercussions. Don’t navigate the North Carolina legal system alone. The dedicated Criminal Law team at Huggins Law Firm provides experienced defense for clients in Greensboro, Winston-Salem, High Point, and across the Piedmont Triad. Protect your rights and your future. Contact us today for a confidential consultation.
Common Questions About NC Credit Card/FTC Crimes for Lawyers
1. I found a lost credit card and kept it but never used it. Can I still be charged with a crime?
Yes. Under NCGS § 14-113.9(a)(2), simply receiving or keeping a financial transaction card that you know was lost or mislaid, with the intent to use it or transfer it to someone else, can be charged as FTC Theft (often a Class 2 misdemeanor in this scenario, but check current statute). Even without using it, the act of keeping it with potential intent to misuse it can be illegal.
2. My friend used my debit card with my permission, but spent way more than I allowed. Is that fraud?
This is a gray area. If you gave permission for some use, it might be harder for the prosecution to prove the initial use was fraudulent unless they can show your friend clearly intended from the start to vastly exceed the permission you gave, essentially deceiving you. It might be viewed more as a civil matter (you could sue them for the money) or potentially Unauthorized Use of a Motor Vehicle if a car was involved and used beyond permission, rather than felony FTC fraud, but the specific facts and intent matter greatly. Discussing this with a lawyer is wise.
3. Someone used my card number online without my permission. Am I liable for the charges? What should I do?
You are generally not liable for unauthorized charges under federal law (Fair Credit Billing Act), usually limited to a maximum of $50, often $0 if reported promptly. You should immediately contact your credit card company or bank to report the fraud, cancel the card, and dispute the charges. You should also file a police report. While you are the victim, the person who used your number could face FTC Fraud charges if caught.
4. What's the difference between credit card fraud and identity theft?
They often overlap. Credit card fraud specifically involves the misuse of a credit/debit card or its number. Identity theft is broader and involves illegally obtaining or using any type of personal identifying information (Social Security number, driver’s license number, bank account info, etc.) for fraudulent purposes. Using a stolen credit card number is a form of both credit card fraud and identity theft.
5. If I pay back the money I charged fraudulently, will the charges be dropped?
Paying restitution is almost always required as part of any sentence or plea agreement, and doing so voluntarily before court can sometimes help your lawyer negotiate a more favorable outcome (like reduced charges or avoiding active jail time). However, like embezzlement, paying the money back does not automatically get the charges dropped in North Carolina. The crime was committed when the fraud occurred. It’s a factor your lawyer will use in negotiations, but it’s not a guarantee of dismissal.
