Creates the crime of criminal practices with an access device

Summary of provisions

Section One amends the penal law by adding a new section 165.21 which defines criminal practices with an access device. For purposes of this section an "access device" shall mean any card, service, number, instrument, service or any means of account access that can be used alone or in conjunction with another device to obtain money, goods, services, or anything of value or a transfer of funds; a "counterfeit access device" shall mean any access device that is not an authentic access device; an "unauthorized access device" shall mean any access device that is lost, stolen, expired, revoked, canceled, or obtained with intent to defraud; and "device making equipment" shall mean any equipment, mechanism, or impression designed or primarily used for making an access device or a counterfeit access device.

The crime of criminal practices with an access device is categorized as a class B misdemeanor under the penal law. A person is guilty of this crime when they knowingly and with the intent to defraud: produces, uses or traffics one or more counterfeit access devices; uses one or more unauthorized access device and obtains anything of value exceeding one thousand dollars in the aggregate over a period of one year; possesses fifteen or more counterfeit or unauthorized access devices; has control, custody, or possesses device making equipment; effects transactions with one or more access devices issued to another person or persons without such persons consent and with intent to receive payment or any other thing of value during a one year period with an aggregate value equal or greater to one thousand dollars; or solicits a person to offer an access device for the purpose of selling information regarding an access device or an application to obtain an access device.

Section Two is the effective date.

Justification

According to the Federal Bureau of Investigation, organized retail theft is an industry that costs united States retailers about $30 billion per year. Organized retail crime comprises a wide spectrum of high-volume and highly organized theft rings that cost New York retailers hundreds of millions of dollars annually and, more importantly, compromise the health, safety, and wallet of unsuspecting New York consumers. And for every item stolen, New York's state and local governments lose out on sales tax revenue -

again, adding up to millions annually. Organized retail theft is the most serious security issue facing many retail merchants, including apparel and accessory retailers, mass merchandisers, do-it-yourself stores, drug stores, and supermarkets. It's a crime that has grown substantially over the past decade, with the emergence of organized criminal theft at an unprecedented level. Retailers are forced to offset these significant costs through higher prices - meaning that honest consumers are forced to endure the impact of organized retail theft, and professional shoplifters.

One of the ways that criminals commit these offenses is through the use of counterfeit or fraudulently obtained credit cards, account numbers, gift cards, or other means that grant access to funds or things of value. In addition to harming retailers, these offenses also harm other consumers when their account numbers are stolen. This bill seeks to crack down on these criminals by penalizing them when they knowingly and with the intent to defraud engage in transactions that rise to the level of organized retail theft. An offense in violation of this section could include possession of a counterfeit or unauthorized access devices, sale of access device information, producing or trafficking access devices, as well as certain unauthorized uses of an access device. Criminalizing these acts deters individuals or members of crime rings from using access devices fraudulently.

Legislative history

New bill.

Fiscal implications

None.

Effective date

This act shall take effect on the first of November next succeeding the date on which it shall have become a law.