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Understanding false fraud accusations

On Behalf of | Feb 11, 2022 | Blog, Criminal Defense |

Fraud is continuing to grow in the modern age, both in volume and in technique. According to Federal Trade Commission reports, Americans lost $148 million to gift card fraud over 2021’s first nine months. This amount does not even factor in credit card fraud, which also continues to be a problem.

Because of the surge in cases, institutions are responding to fraud reports faster than they used to. This is a good thing, but it comes with a caveat: False fraud accusations may be more likely now than ever before.

How can a false accusation happen?

A person might allow someone else to use his or her card and then regret it later. There could also be a misunderstanding when people exchange card information. Lastly, there is the possibility that fraud did in fact occur, but the victim is suspicious of the wrong person. In turn, a fraud accusation can spring up out of the blue when the defendant had no malicious intent.

What are the charges for fraud?

Under Indiana law, committing fraud of any kind is a Class A misdemeanor in most cases. However, there are special situations where the act qualifies as a felony. These situations include committing fraud more than once within seven years, stealing $750 or more, defrauding a minor, obtaining a government card and violating probation.

It is important to take fraud seriously, but it is also important to know the ramifications of a false accusation. This is why a person should not simply go off of verbal permission when using someone else’s card. It may seem excessive to require signatures and documentation, but these steps can help a person handle issues down the road.