ATM fraud can result in state-level criminal charges, but the federal government often steps in to prosecute the case because the fraud causes harm to financial institutions. There are myriad types of ATM frauds that can lead to criminal charges for identity theft, wire fraud, credit card fraud, larceny, and bank fraud.
Each federal offense can result in a lengthy prison term. A New York criminal defense lawyer will try to keep you out of prison by securing a verdict of not guilty or by talking to the prosecutor to negotiate a favorable plea agreement .
Types of ATM Frauds
ATM frauds may include:
- Theft from an ATM machine. This type of ATM fraud involves breaking into a physical machine to steal the money inside.
- Theft of an ATM machine. The goal is generally to take the machine somewhere to obtain the money inside of it.
- ATM Card skimming. This is a more high-tech type of fraud involving the placement of a small machine inside the ATM that is similar to a card reader. The machine, called a skimmer, reads and records data embedded on ATM cards inserted into the machine, including the security code on the cards. Once the information has been obtained, a clone of the card can be produced and used or sold.
- ATM Withdrawal fraud: This crime involves opening an account at a financial institution and making a deposit of fake checks that take time to process. The checks are often deposited on a Friday evening or before a holiday to extend the processing time. When the fake checks post a pending account balance, money is withdrawn from an ATM even though the checks will never clear.
- ATM Card theft: ATM card theft can occur in a low-tech way by taking someone’s ATM card. It can also be carried out by placing something inside an ATM machine that prevents a card from being removed after insertion. When the customer leaves, the card is retrieved. This is often a multi-part ATM scam. When the card is trapped inside the machine, a co-conspirator may suggest to the card’s owner that he should re-entering his pin number. A spotter can watch and record the pin number. When the customer leaves without the card, those involved in the scam now have both the card and the PIN.
- International ATM card fraud : Stolen ATM card information is frequently traded on the black market and sold internationally. ATM card information taken in one country can be used to withdraw funds from ATMs in another.
Top Rated Criminal Lawyer
Arkady Bukh has a long track record of representing clients accused of serious federal and state crimes in NYC
TOP RATED ON: SUPER LAWYERS, AVVO, NATIONAL TRIAL LAWYERS
Many ATM cards also function in a similar manner to credit cards, allowing account holders to swipe the cards when shopping. Unlike credit cards, these debit cards automatically take the money right out of the account holder’s bank account. Because debit cards function like credit cards, these types of cards bring with them all of the risks of credit card fraud.
Penalties for ATM Fraud
Penalties for ATM fraud vary depending upon whether you are charged at the state or federal level, and what specific crimes you are accused of. You may be charged with:
- Larceny: Larceny is generally a state crime. In New York, Article 155 of the Penal Code imposes penalties for larceny. The value of the stolen goods usually determines whether you will be charged with petit or grand larceny. However, stealing a credit or debit card is always going to lead to a charge of grand larceny.
- Identity theft: 18 U.S. Code Section 1028 makes it a federal crime to knowingly obtain and misuse identifying information, and to possess, transfer, or sell, identifying documents or information. Identity theft is also illegal under the New York Penal Code in Sections 190.78- 190.80.
- Wire fraud: 18 U.S. Code Section 1343 makes it a crime to carry out any scheme of fraud or artifice that uses wire, radio, or television communications as any part of the scheme.
- Bank fraud: S. Code Section 1344 criminalizes any scheme or artifice intended to obtain money from a financial institution.
Getting Help from an ATM Fraud Lawyer
If you are accused of ATM scams, conviction could mean saying goodbye to your freedom for years to come. You should be treated as innocent until proven guilty and should get the information you need to make informed choices as you defend yourself. A NY defense lawyer can help after accusations of ATM frauds are made.
Call today to learn more.