NRS § 205.760 – Credit & Debit Card Fraud – Nevada Law

Nevada NRS § 205.760 prohibits credit or debit card fraud, which is intentionally misusing card information in order to defraud another person or business. Most of these cases are prosecuted as category D felonies punishable by 1 to 4 years in prison and up to $5000.00 in fines.

Common types of credit card fraud are:

• Possessing another person’s credit or debit card without consent
• Using a credit or debit card that has been revoked or expired
• Lying on a credit or debit card application

Most credit card fraud cases are prosecuted as a category D felony in Nevada. The punishment carries:

• 1 – 4 years in Nevada State Prison, and
• possibly $5,000 in fines, and
• victim restitution

However, a defense attorney may be able to convince the D.A. to sign off on a plea bargain where the charge reduces to a misdemeanor or possibly a dismissal. Three common defenses to fraud charges include:

1. You had no intent to defraud;
2. You were a victim of mistaken identity; and/or
3. The police committed an illegal search

In this article, our Las Vegas Nevada criminal defense attorneys discuss the following credit card fraud topics:

• 1. What is credit card fraud?
• 2. What are the penalties under NRS 205.760?
• 3. What are the defenses?
• 4. Can the criminal record be sealed?
• 5. What are the immigration consequences?
• 6. Related crimes
• Additional resources

1. What is credit card fraud?

The Nevada crime of credit (or debit) card fraud occurs when you intentionally use — or attempt to use — a credit (or debit) card in an unlawful manner. Any deliberate act of forging, altering, stealing or otherwise misusing a debit or credit card qualifies as fraud in Nevada.

Example: Allen gets his Nevada Energy bill in the mail. On the bill he writes his MasterCard account number information and mails it back to the electric company. Allen knows that his MasterCard has been canceled, but he wants to try to use it to pay his bill anyway. Since Allen deliberately used a canceled MasterCard with intent to defraud the electric company, he could be liable for fraud.

Example: Tyler fills out an application for an American Express card. In the application he intentionally inflates his minimum-wage salary in Nevada and lies about not having any debt. Since Tyler lied in order to increase his chances of getting an Amex, he could be liable for fraud.

Example: Jean is short on cash, so he secretly takes his roommate’s Discover without permission and goes shopping at the Las Vegas Swap Meet. Since Jean knows he did not have his roommate’s consent, Jean is guilty of fraud. It does not matter if Jean did not end up buying anything — merely possessing another person’s debit or credit card without permission is fraud.

In all, there are ten main types of credit (or debit) card fraud in Nevada, including:

1. Knowingly using a revoked, expired, stolen, or forged credit card¹
2. Lying to a credit card issuer in order to get a credit card²
3. Possessing another person’s credit card without their consent³
4. Buying or selling a credit card⁴
5. Selling telephone calling card information⁵
6. Wrongfully using a credit card number to secure a debt⁶
7. Forging a credit card⁷
8. Signing a credit card receipt without authorization⁸
9. Possessing equipment to make credit cards⁹
10. Knowingly receiving property or services from the unlawful use of credit cards¹⁰

In recent years there has been a rise in a type of fraud called “skimming.” Credit card skimming is where you hide a “wedge” device in a card reader — then when the cardholder swipes the card, the wedge steals (“skims”) the magnetic information off the back of cards.¹¹ Skimming is especially common in gas station card readers.

Note that potential creditors can be guilty of fraud as well. It is illegal to accept payment on credit with the knowledge that the card is forged, stolen, or revoked.¹²

Example: Sam works as a clerk at a grocery store. His friend Tom comes in and wants to purchase a soda using a fake Visa Tom created. Sam knows that the card is fake but authorizes the transaction anyway. Therefore both Sam and Tom are liable for fraud: Tom for knowingly using a fake Visa, and Sam for knowingly authorizing the transaction with a fake Visa.

It is also illegal for creditors to misrepresent the value of their goods or services to card issuers. An example would be Sam in the above example selling soda for $4 but reporting to the card company that he sells it for $5 in order to pocket an extra dollar.¹³

Intent to Defraud

The central element of Nevada fraud crimes is that you had “intent to defraud.” This means that you deliberately tried to use a credit card — or the information on a card — for the purpose of tricking the cardholder, creditor, or card company out of money.

In order to be convicted in Nevada of credit (or debit) card fraud, the D.A. has the burden to prove beyond a reasonable doubt that you had “intent to defraud.” However, there are some situations where the court may presume that you had “intent to defraud.”¹⁴ These situations include the following:

• If you try to use the card, and the creditor or issuer refuses payment.¹⁵
• If you possess two (2) or more cards that are falsely made or embossed or in the names of other people.¹⁶
• If you use a card four (4) or more days after the issuer mailed out a notice of revocation¹⁷

Federal credit card fraud crimes

Credit card fraud is also a federal crime.¹⁸ Various agencies investigate allegations of federal credit fraud, including:

• the National Fraud Information Center (NFIC),
• the Federal Bureau of Investigation (FBI), and
• the Federal Trade Commission (FTC)

Prosecutors typically bring federal credit fraud charges in the following situations:

• The fraud was committed against a federal governmental entity, or
• The fraud was committed on federal government property, or
• The fraud crossed state lines.

You may face fraud charges in either Nevada state court or Nevada federal court — or in both courts — depending on the case.

2. What are the penalties?

Most types of credit and debit card fraud are prosecuted as category D felonies. The punishment includes:

• One to four (1 – 4) years in prison, and
• possibly up to $5,000 in fines, and
• restitution to the victim

Note that it is a gross misdemeanor to intentionally put false information in an application for a line of credit. The sentence includes:

• Up to 364 days in jail, and/or
• Up to $2,000 in fines¹⁹

Using expired or revoked cards

Knowingly using an expired or revoked credit or debit card can be a felony or a misdemeanor depending on the amount bought. Using an expired or revoked credit/debit card to buy less than $100 within a six (6)-month period is a misdemeanor carrying:

• Up to six (6) months in jail, and/or
• Up to $1,000 in fines

Otherwise, using an expired or revoked credit/debit card is a category D felony in Nevada, carrying:

• one to four (1 – 4) years in prison, and
• possibly up to $5,000 in fines, and
• restitution to the victim²⁰

Federal “credit card fraud” penalties

Under federal law, the punishment for credit card fraud is up to 20 years in Federal Prison depending on the circumstances of the case. The court may also impose hefty fines as well as restitution.²¹

3. What are the defenses?

Fighting credit and debit card fraud charges in Nevada usually involves using one or more of the following defenses:

1. You had no intent to fraud,
2. You are the victim of mistaken identity, or
3. The police performed an illegal search.

In cases that go to trial, the prosecution has the burden to prove guilt beyond a reasonable doubt. If the state has insufficient evidence to meet this burden, you should be acquitted.²²

Note that it is not a defense that the victim(s) did not end up losing money.

You had no intent to defraud

The most common defense in all debit or credit card fraud charges is that you had no “intent to defraud.” This means that you did not deliberately try to misuse the card.

Example: Ann and Mike are roommates in Las Vegas. One day while rushing to leave the house, Ann mistakenly grabs Mike’s Capital One card instead of her own. Throughout the day Anne swipes Mike’s Capital One at a gas station, a parking meter, an ATM to get cash, and a grocery checkout line. Even though Mike did not give Ann permission to use the Capital One, Ann is not guilty of fraud.  

Ann in the above example grabbed Mike’s Capital One by mistake, and she had no idea she was swiping his card when making her daily purchases. Therefore, Ann had no “intent to defraud” Mike, Capital One, or the merchants. Of course, Ann is civilly liable to pay back Mike for the purchases.

You are the victim of mistaken identity

A standard defense to fraud is that the police arrested the wrong person. Often there are no eyewitnesses to fraudulent conduct, and the real culprit may try to frame an innocent person. If the prosecution cannot prove beyond a reasonable doubt that you are the person who committed the alleged fraud, the fraud charges should be dismissed.

The police performed an illegal search

Police department investigations often involve searches of your home, office, or your computer files. If law enforcement conducted an illegal search — such as by not getting a search warrant — you may have legal recourse in Nevada:

We can file a motion to suppress evidence with the court. This motion explains to the court how the police search was unlawful. This motion also asks the court to throw out any evidence found through the unlawful search. If the court agrees and grants the motion, then the D.A. may be left with insufficient evidence to pursue fraud charges in Nevada.

4. Can the criminal record be sealed?

The waiting period for sealing past fraud convictions depends on whether they were felonies, gross misdemeanors, or misdemeanors:

Debit or credit card fraud crime	Waiting period to get a record seal
Category D felony (the majority of cases)	5 years after the case ends
Gross misdemeanor	2 years after the case ends
Misdemeanor	1 year after the case ends23
Dismissal (no conviction)	No waiting period24

Learn more about sealing criminal records in Nevada.

5. What are the immigration consequences?

Credit card fraud may be considered a crime involving moral turpitude. Therefore, non-citizens convicted of credit card fraud may be vulnerable to deportation.²⁴

Every immigrant facing Nevada criminal charges should consult with an attorney about trying to get their case dismissed or reduced to a non-removable offense.

6. Related offenses

Obtaining money by false pretenses

Obtaining money by false pretenses occurs when you knowingly misrepresent yourself to get money from someone relying on their misrepresentation. Penalties depend on the amount of money stolen.²⁶

Identity theft

Identity theft involves using another person’s identifying information unlawfully or without that person’s authorization. The penalties depend on the specific facts of the case.

The typical ID theft case is prosecuted as a category B felony, carrying:

• one to twenty (1 – 20) years in prison, and
• possibly a $100,000 fine, and
• restitution

Though the minimum prison term is raised to three (3) years if either:

• the victim was 60 years old or older or a “vulnerable” person under Nevada law;
• there were five (5) or more victims;
• a victim lost at least $3,000; or
• you were avoiding prosecution of a category A felony or category B felony

Meanwhile, committing ID theft to avoid or delay being prosecuted for an unlawful act is punished slightly less harshly as a category C felony, carrying:

• one to five (1 – 5) years in prison, and
• possibly a $10,000 fine, and
• restitution²⁷

Insurance fraud

Insurance fraud typically involves lying to an insurer in order to obtain benefits you are not eligible for. It is usually a category D felony carrying:

• one to four (1 – 4) years in prison,
• possibly up to $5,000 in fines,
• restitution,
• costs to reimburse the Nevada Attorney General’s Office for its investigation and prosecution, and
• possible denial of future benefits²⁸

Additional resources

Refer to these articles for more information about credit card fraud, including how to report fraud and tips for safeguarding yourself.

• Nevada fraud crimes
• Steps to Take if You Are the Victim of Credit Card Fraud, Experian
• Credit Card Fraud: Cloning & Skimming, Equifax
• Fraud Victim Resources, TransUnion
• Credit Cards, Federal Trade Commission

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Legal References