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 the 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 in the third degree is categorized as a class A misdemeanor, criminal practices with an access device in the second degree is categorized as a class E felony, and criminal practices with an access device in the third degree is categorized as a class D felony.

Section Two is the effective date.

Justification

According to the Federal Bureau of Investigation, organized retail theft is a crime 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 welfare of unsuspecting New York consumers. And for every item stolen, New York 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 rinds from using access devices fraudulently.

Legislative history

S.6954B of 2012 passed in the Senate/ A.10324A referred to Codes

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.