Punishment for Opening a Credit Card in Someone Else’s Name

Opening a credit card in someone else’s name is not a paperwork mistake or a misunderstanding. It is a form of identity theft and fraud, and the punishment for opening a credit card in someone else’s name can be severe. U.S. law treats this conduct as a serious criminal offense, and prosecutors may pursue charges at the state level, the federal level, or both, depending on how the account was opened, the amount involved, and whether interstate systems were used.

Prosecution for unauthorized credit card fraud and/or identity theft carries a range of possible punishments, including incarceration, substantial monetary fines, mandatory restitution to the victim, and other long-lasting negative effects upon an offender’s ability to find employment, obtain housing, and utilize financial resources in general.

Why This Crime Is Treated as Serious Fraud

Opening a credit card using another person’s identity harms more than the individual victim. Unauthorized use of another person’s identity to open a credit card account can cause financial loss to the lender and create distrust in the overall credit system.

The courts have found that the typical actions taken by those who commit this type of fraud are intended to deceive the lender. Typical actions include providing false information to the lender, misusing the victim’s personal information, and creating financial risk for the lender without the victim’s consent. Regardless of the perpetrator’s intent to repay the fraudulent charges, the crime of fraud exists solely because the account was opened using false and/or unauthorized information provided by the perpetrator.

Federal Penalties for Identity Theft and Credit Card Fraud

There are federal laws that apply to individuals who open credit card accounts using another person’s identity. These federal laws will typically apply to situations where the credit card account was opened online, included activities that crossed state lines, or included federally insured financial institutions. There are numerous cases that qualify under these factors.

Under federal law, opening a credit card in someone else’s name can result in substantial prison exposure and financial penalties, particularly when charged under identity theft or fraud statutes.

Federal penalties may include:

• Prison sentences of up to 10 years for identity theft and up to 15 or 20 years under certain fraud statutes
• Fines of up to $250,000 or more, plus forfeiture of assets tied to the offense
• Additional charges, such as mail fraud, wire fraud, bank fraud, or money laundering, each carry separate penalties, sometimes up to 30 years.

When multiple statutes apply, sentences can be imposed consecutively.

Legal Definitions and Elements of Credit Card Fraud

Credit card fraud is defined under both state and federal law as the unauthorized use of another person’s financial credentials or identity. At the federal level, many cases fall under 18 U.S.C. § 1029, which governs access device fraud.

An “access device” includes credit card numbers, account numbers, or any method used to access a financial account. Violations may involve fake credit card applications, fraudulent credit cards, or counterfeit access devices designed to impersonate legitimate accounts.

Courts focus on whether the accused knowingly used or attempted to use another person’s personal information without authorization. Common examples of related crimes that the prosecution may bring against the perpetrator include mail theft to intercept credit card or statement mail, using a credit card skimmer to collect personal identifying information from others, or defrauding a member of the credit card system (such as a bank or credit card issuer).

State-Level Penalties (Which Vary by Jurisdiction)

Even when federal prosecutors file charges, state prosecutors often bring their own cases. State courts determine penalties based on the amount charged, the victim’s losses, and the defendant’s prior criminal history.

In lower-value cases, charges may be filed as misdemeanors, often carrying up to one year in jail, fines, and probation. Larger losses typically result in felony charges, commonly classified as grand theft or a related fraud offense.

Examples of state-level exposure include:

• Florida: Often a third-degree felony; up to 5 years in prison
• New York: Misdemeanor to Class C felony; up to 15 years in high-value cases
• Illinois: Class 4 felony; 1–3 years, escalating with losses
• Pennsylvania: Misdemeanor under $2,000; felony with higher losses
• Missouri: Class A misdemeanor to Class B felony; up to 15 years
• North Carolina: Felony even for first offense; sentences up to ~80 months
• Arizona: Class 4 felony; enhanced penalties for multiple cards or devices

Some states treat the offense as a “wobbler,” allowing prosecutors to choose misdemeanor or felony charges based on severity.

Long-Term Consequences Beyond Criminal Sentencing

The impact of a conviction extends well beyond jail or fines.

A fraud or identity theft conviction creates a permanent criminal record that can restrict employment, professional licensing, housing options, and access to credit. Because fraud is a crime of dishonesty, reputational harm is significant and lasting.

Courts almost always order restitution, requiring repayment of fraudulent charges, fees, interest, and costs associated with repairing the victim’s credit. Restitution obligations can last for years.

Victims may also pursue civil lawsuits for financial losses, emotional distress, and legal expenses, creating additional long-term liability.

Family Relationships Do Not Make It Legal

Using a family member’s identity without explicit legal authorization is still fraud.

Opening a credit card in a family member’s name (spouse, parent, child, etc.) remains a crime, and the relationship to that family member does not provide immunity from prosecution.

Does Intent or Repayment Matter?

Intent is a required element, but it is usually straightforward to establish.

Applying for credit using another person’s name, Social Security number, or identifying information generally demonstrates intent to defraud, even if the offender planned to pay the bill or believed repayment would resolve the issue.

Paying charges later does not erase the crime.

Legal Defenses and Rights of the Accused

Being accused of a crime is not sufficient to establish that the defendant committed the crime. To convict a defendant of a crime, the prosecution must demonstrate a direct link between the defendant and the fraudulent credit card account, as well as demonstrate that the defendant had the requisite knowledge and intent to commit the crime.

Possible defenses could include that the person didn’t intend to commit fraud, didn’t know the credit card account was opened illegally, was forced to do so, or had permission to open or use the account. Documentation demonstrating consent, authorization, or legitimate access to the account can be critical in establishing a valid defense.

Because these cases often involve complex financial records and overlapping state and federal statutes, experienced criminal defense counsel is essential, particularly when federal charges under 18 U.S.C. § 1029 are involved.

Preventive Measures and Identity Protection

Protecting oneself from having an unauthorized credit card account opened requires protecting one’s personal identifying information and recognizing and reporting suspicious activity as soon as possible. The FTC emphasizes that limiting the dissemination of sensitive data and responding to suspicious activity immediately are effective ways to prevent the misuse of one’s identity to open unauthorized credit card accounts.

Some prevention measures that can protect one from having an unauthorized credit card account opened include:

• Utilizing strong passwords and controlling access to one’s financial accounts.
• Only sharing personal identifying information when absolutely necessary.
• Monitoring credit reports and receiving notifications in real-time regarding changes to one’s credit report or account activity.

Many individuals also opt to freeze their credit or purchase identity theft protection products and services that provide insurance coverage and recovery assistance if their identity is misused.

In complex cases, a consumer protection attorney can assist with disputing fraudulent accounts and enforcing legal rights.

The Bottom Line

Opening a credit card in someone else’s name is a serious criminal offense with severe consequences, and the punishment for opening a credit card in someone else’s name can be life-altering depending on the circumstances.

Punishment may include:

• Significant prison time at the state or federal level
• Fines exceeding hundreds of thousands of dollars
• Mandatory restitution
• A permanent criminal record
• Civil lawsuits and long-term financial liability

This is not a gray area of the law. It is one of the most aggressively prosecuted forms of financial fraud, with consequences that can last a person’s life.

Disclaimer: This content is provided for educational purposes by NewReputation and is not legal advice. Laws related to identity theft, credit card fraud, and financial crimes vary by jurisdiction and depend on individual circumstances. NewReputation does not provide legal representation. If you are facing criminal charges or have been affected by identity theft, consult a qualified attorney or appropriate legal professional.