Relates to theft of credit card and debit card account numbers

1 Co-sponsor

• Tony Avella

BILL NUMBER:S1411

Title of bill

An act to amend the penal law, in relation to theft of credit card account numbers and debit card account numbers

Purpose

To include the theft of credit card and debit card numbers, in addition to theft of the cards themselves, in the definition of grand larceny in the fourth degree.

Summary of provisions

Section 1 amends the Penal Law by adding a new subdivision 4-a to provide that theft of credit card and debit card numbers with the intent of unlawful use is included within the definition of grand larceny in the fourth degree.

Section 2 provides for an effective date of November first after enactment.

Existing law

Section 155.30 of the Penal Law provides that theft of credit or debit cards is grand larceny in the fourth degree, however, the law is silent with regard to theft of credit or debit card numbers.

Justification

While it is an E felony to steal property consisting of a credit card or debit card, if a thief steals a credit card account number or a debit card account number instead of the actual, physical card, no crime has been committed until the thief actually uses the account number and obtains goods, money or services. Previously, in order to use a stolen credit or debit card, a person would need to physically possess the card. Now that goods and services can be ordered by phone or over the Internet, only the card number and not the physical card is necessary to use the stolen number fraudulently. Stolen card numbers can also be encoded on plastic to create fraudulent credit or debit cards.

Card numbers can be stolen in a variety of ways. In a retail establishment, a credit or debit card can be entered into a device to capture account information and then the card is returned to the customer who is unaware that his account number has been stolen. Dishonest employees can copy account numbers from sales receipts or during phone orders and thieves can steal credit card bills from the mail or hack into personal computers. Account numbers can also be obtained through phishing -- sending fraudulent e-mails purporting to be from legitimate companies that ask for credit card information to be updated or amended or re-entered by the customer in order to maintain the business relationship.

With technological advances proceeding at a rapid pace, criminals are finding ways to use this new technology before laws can be enacted to address these types of crimes. This is another step for law enforcement to use to protect the public from thieves who would steal their personal account information and run up fraudulent credit card bills or steal cash through their debit card.

Legislative history

2007-2008: S.4789 - Passed Senate

Fiscal implications

None.

Local fiscal implications

None.

Effective date

November 1st after enactment.