TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
PART I - CRIMES
CHAPTER 47 - FRAUD AND FALSE STATEMENTS
HEAD
Sec. 1029. Fraud and related activity in connection with access
devices
STATUTE
(a) Whoever -
(1) knowingly and with intent to defraud produces, uses, or
traffics in one or more counterfeit access devices;
(2) knowingly and with intent to defraud traffics in or uses
one or more unauthorized access devices during any one-year
period, and by such conduct obtains anything of value aggregating
$1,000 or more during that period;
(3) knowingly and with intent to defraud possesses fifteen or
more devices which are counterfeit or unauthorized access
devices;
(4) knowingly, and with intent to defraud, produces, traffics
in, has control or custody of, or possesses device-making
equipment;
(5) knowingly and with intent to defraud effects transactions,
with 1 or more access devices issued to another person or
persons, to receive payment or any other thing of value during
any 1-year period the aggregate value of which is equal to or
greater than $1,000;
(6) without the authorization of the issuer of the access
device, knowingly and with intent to defraud solicits a person
for the purpose of -
(A) offering an access device; or
(B) selling information regarding or an application to obtain
an access device;
(7) knowingly and with intent to defraud uses, produces,
traffics in, has control or custody of, or possesses a
telecommunications instrument that has been modified or altered
to obtain unauthorized use of telecommunications services;
(8) knowingly and with intent to defraud uses, produces,
traffics in, has control or custody of, or possesses a scanning
receiver;
(9) knowingly uses, produces, traffics in, has control or
custody of, or possesses hardware or software, knowing it has
been configured to insert or modify telecommunication identifying
information associated with or contained in a telecommunications
instrument so that such instrument may be used to obtain
telecommunications service without authorization; or
(10) without the authorization of the credit card system member
or its agent, knowingly and with intent to defraud causes or
arranges for another person to present to the member or its
agent, for payment, 1 or more evidences or records of
transactions made by an access device;
shall, if the offense affects interstate or foreign commerce, be
punished as provided in subsection (c) of this section.
(b)(1) Whoever attempts to commit an offense under subsection (a)
of this section shall be subject to the same penalties as those
prescribed for the offense attempted.
(2) Whoever is a party to a conspiracy of two or more persons to
commit an offense under subsection (a) of this section, if any of
the parties engages in any conduct in furtherance of such offense,
shall be fined an amount not greater than the amount provided as
the maximum fine for such offense under subsection (c) of this
section or imprisoned not longer than one-half the period provided
as the maximum imprisonment for such offense under subsection (c)
of this section, or both.
(c) Penalties. -
(1) Generally. - The punishment for an offense under subsection
(a) of this section is -
(A) in the case of an offense that does not occur after a
conviction for another offense under this section -
(i) if the offense is under paragraph (1), (2), (3), (6),
(7), or (10) of subsection (a), a fine under this title or
imprisonment for not more than 10 years, or both; and
(ii) if the offense is under paragraph (4), (5), (8), or
(9) of subsection (a), a fine under this title or
imprisonment for not more than 15 years, or both;
(B) in the case of an offense that occurs after a conviction
for another offense under this section, a fine under this title
or imprisonment for not more than 20 years, or both; and
(C) in either case, forfeiture to the United States of any
personal property used or intended to be used to commit the
offense.
(2) Forfeiture procedure. - The forfeiture of property under
this section, including any seizure and disposition of the
property and any related administrative and judicial proceeding,
shall be governed by section 413 of the Controlled Substances
Act, except for subsection (d) of that section.
(d) The United States Secret Service shall, in addition to any
other agency having such authority, have the authority to
investigate offenses under this section. Such authority of the
United States Secret Service shall be exercised in accordance with
an agreement which shall be entered into by the Secretary of the
Treasury and the Attorney General.
(e) As used in this section -
(1) the term "access device" means any card, plate, code,
account number, electronic serial number, mobile identification
number, personal identification number, or other
telecommunications service, equipment, or instrument identifier,
or other means of account access that can be used, alone or in
conjunction with another access device, to obtain money, goods,
services, or any other thing of value, or that can be used to
initiate a transfer of funds (other than a transfer originated
solely by paper instrument);
(2) the term "counterfeit access device" means any access
device that is counterfeit, fictitious, altered, or forged, or an
identifiable component of an access device or a counterfeit
access device;
(3) the term "unauthorized access device" means any access
device that is lost, stolen, expired, revoked, canceled, or
obtained with intent to defraud;
(4) the term "produce" includes design, alter, authenticate,
duplicate, or assemble;
(5) the term "traffic" means transfer, or otherwise dispose of,
to another, or obtain control of with intent to transfer or
dispose of;
(6) the term "device-making equipment" means any equipment,
mechanism, or impression designed or primarily used for making an
access device or a counterfeit access device;
(7) the term "credit card system member" means a financial
institution or other entity that is a member of a credit card
system, including an entity, whether affiliated with or identical
to the credit card issuer, that is the sole member of a credit
card system;
(8) the term "scanning receiver" means a device or apparatus
that can be used to intercept a wire or electronic communication
in violation of chapter 119 or to intercept an electronic serial
number, mobile identification number, or other identifier of any
telecommunications service, equipment, or instrument;
(9) the term "telecommunications service" has the meaning given
such term in section 3 of title I of the Communications Act of
1934 (47 U.S.C. 153);
(10) the term "facilities-based carrier" means an entity that
owns communications transmission facilities, is responsible for
the operation and maintenance of those facilities, and holds an
operating license issued by the Federal Communications Commission
under the authority of title III of the Communications Act of
1934; and
(11) the term "telecommunication identifying information" means
electronic serial number or any other number or signal that
identifies a specific telecommunications instrument or account,
or a specific communication transmitted from a telecommunications
instrument.
(f) This section does not prohibit any lawfully authorized
investigative, protective, or intelligence activity of a law
enforcement agency of the United States, a State, or a political
subdivision of a State, or of an intelligence agency of the United
States, or any activity authorized under chapter 224 of this title.
For purposes of this subsection, the term "State" includes a State
of the United States, the District of Columbia, and any
commonwealth, territory, or possession of the United States.
(g)(1) It is not a violation of subsection (a)(9) for an officer,
employee, or agent of, or a person engaged in business with, a
facilities-based carrier, to engage in conduct (other than
trafficking) otherwise prohibited by that subsection for the
purpose of protecting the property or legal rights of that carrier,
unless such conduct is for the purpose of obtaining
telecommunications service provided by another facilities-based
carrier without the authorization of such carrier.
(2) In a prosecution for a violation of subsection (a)(9), (other
than a violation consisting of producing or trafficking) it is an
affirmative defense (which the defendant must establish by a
preponderance of the evidence) that the conduct charged was engaged
in for research or development in connection with a lawful purpose.
(h) Any person who, outside the jurisdiction of the United
States, engages in any act that, if committed within the
jurisdiction of the United States, would constitute an offense
under subsection (a) or (b) of this section, shall be subject to
the fines, penalties, imprisonment, and forfeiture provided in this
title if -
(1) the offense involves an access device issued, owned,
managed, or controlled by a financial institution, account
issuer, credit card system member, or other entity within the
jurisdiction of the United States; and
(2) the person transports, delivers, conveys, transfers to or
through, or otherwise stores, secrets, or holds within the
jurisdiction of the United States, any article used to assist in
the commission of the offense or the proceeds of such offense or
property derived therefrom.
SOURCE
(Added Pub. L. 98-473, title II, Sec. 1602(a), Oct. 12, 1984, 98
Stat. 2183; amended Pub. L. 99-646, Sec. 44(b), Nov. 10, 1986, 100
Stat. 3601; Pub. L. 101-647, title XII, Sec. 1205(f), Nov. 29,
1990, 104 Stat. 4831; Pub. L. 103-322, title XXV, Sec. 250007,
title XXXIII, Sec. 330016(2)(I), Sept. 13, 1994, 108 Stat. 2087,
2148; Pub. L. 103-414, title II, Sec. 206, Oct. 25, 1994, 108 Stat.
4291; Pub. L. 104-294, title VI, Sec. 601(l), Oct. 11, 1996, 110
Stat. 3501; Pub. L. 105-172, Sec. 2(a)-(d), Apr. 24, 1998, 112
Stat. 53, 54; Pub. L. 107-56, title III, Sec. 377, Oct. 26, 2001,
115 Stat. 342; Pub. L. 107-273, div. B, title IV, Sec. 4002(b)(11),
Nov. 2, 2002, 116 Stat. 1808.)
REFERENCES IN TEXT
Section 413 of the Controlled Substances Act, referred to in
subsec. (c)(2), is classified to section 853 of Title 21, Food and
Drugs.
The Communications Act of 1934, referred to in subsec. (e)(10),
is act June 19, 1934, ch. 652, 48 Stat. 1964, as amended. Title III
of the Act is classified generally to subchapter III (Sec. 301 et
seq.) of chapter 5 of Title 47, Telegraphs, Telephones, and
Radiotelegraphs. For complete classification of this Act to the
Code, see section 609 of Title 47 and Tables.
AMENDMENTS
2002 - Subsec. (c)(1)(A)(ii). Pub. L. 107-273, Sec.
4002(b)(11)(A), substituted "(9)" for "(9),".
Subsec. (e)(8). Pub. L. 107-273, Sec. 4002(b)(11)(B), inserted
semicolon at end.
2001 - Subsec. (h). Pub. L. 107-56 added subsec. (h).
1998 - Subsec. (a)(8) to (10). Pub. L. 105-172, Sec. 2(a), added
pars. (8) and (9), redesignated former par. (9) as (10), and struck
out former par. (8) which read as follows: "knowingly and with
intent to defraud uses, produces, traffics in, has control or
custody of, or possesses -
"(A) a scanning receiver; or
"(B) hardware or software used for altering or modifying
telecommunications instruments to obtain unauthorized access to
telecommunications services, or".
Subsec. (b)(1). Pub. L. 105-172, Sec. 2(b)(2), substituted
"subject to the same penalties as those prescribed for the offense
attempted" for "punished as provided in subsection (c) of this
section".
Subsec. (c). Pub. L. 105-172, Sec. 2(b)(1), amended subsec. (c)
generally. Prior to amendment, subsec. (c) read as follows: "The
punishment for an offense under subsection (a) or (b)(1) of this
section is -
"(1) a fine under this title or twice the value obtained by the
offense, whichever is greater, or imprisonment for not more than
ten years, or both, in the case of an offense under subsection
(a)(2), (3), (5), (6), (7), (8), or (9) of this section which
does not occur after a conviction for another offense under
either such subsection, or an attempt to commit an offense
punishable under this paragraph;
"(2) a fine under this title or twice the value obtained by the
offense, whichever is greater, or imprisonment for not more than
fifteen years, or both, in the case of an offense under
subsection (a)(1), (4), (5), (6), (7), or (8) of this section
which does not occur after a conviction for another offense under
either such subsection, or an attempt to commit an offense
punishable under this paragraph; and
"(3) a fine under this title or twice the value obtained by the
offense, whichever is greater, or imprisonment for not more than
twenty years, or both, in the case of an offense under subsection
(a) of this section which occurs after a conviction for another
offense under such subsection, or an attempt to commit an offense
punishable under this paragraph."
Subsec. (e)(8). Pub. L. 105-172, Sec. 2(c), inserted "or to
intercept an electronic serial number, mobile identification
number, or other identifier of any telecommunications service,
equipment, or instrument" before the period at end.
Subsec. (e)(9) to (11). Pub. L. 105-172, Sec. 2(d)(2), added
pars. (9) to (11).
Subsec. (g). Pub. L. 105-172, Sec. 2(d)(1), added subsec. (g).
1996 - Subsec. (a)(5). Pub. L. 104-294, Sec. 601(l)(1)(A),
redesignated par. (5), relating to instruments that have been
modified or altered to obtain unauthorized access to
telecommunications services, as (7).
Subsec. (a)(6). Pub. L. 104-294, Sec. 601(l)(1)(C), in par. (6)
relating to solicitations, struck out "or" at end.
Pub. L. 104-294, Sec. 601(l)(1)(A), redesignated par. (6),
relating to scanning receivers or other hardware or software used
to obtain unauthorized access to telecommunications services, as
(8).
Subsec. (a)(7). Pub. L. 104-294, Sec. 601(l)(1)(A), (C),
redesignated par. (5), relating to instruments that have been
modified or altered to obtain unauthorized access to
telecommunications services, as (7), and struck out "or" at end.
Par. transferred to appear in numerical order to reflect probable
intent of Congress. Former par. (7) redesignated (9).
Pub. L. 104-294, Sec. 601(l)(1)(B), redesignated par. (7) as (9).
Subsec. (a)(8). Pub. L. 104-294, Sec. 601(l)(1)(A), (D),
redesignated par. (6), relating to scanning receivers or other
hardware or software used to obtain unauthorized access to
telecommunications services, as (8) and inserted "or" at end. Par.
transferred to appear in numerical order to reflect probable intent
of Congress.
Subsec. (a)(9). Pub. L. 104-294, Sec. 601(l)(1)(B), redesignated
par. (7) as (9).
Subsec. (c)(1). Pub. L. 104-294, Sec. 601(l)(3)(A), substituted
"(7), (8), or (9)" for "or (7)".
Subsec. (c)(2). Pub. L. 104-294, Sec. 601(l)(3)(B), substituted
"(6), (7), or (8)" for "or (6)".
Subsec. (e)(7), (8). Pub. L. 104-294, Sec. 601(l)(2),
redesignated par. (7), defining "scanning receiver", as (8).
1994 - Subsec. (a)(3). Pub. L. 103-322, Sec. 250007(1)(A), and
Pub. L. 103-414, Sec. 206(a)(1), amended par. (3) identically,
striking "or" at end.
Subsec. (a)(5). Pub. L. 103-414, Sec. 206(a)(2), added par. (5)
relating to instruments that have been modified or altered to
obtain unauthorized use of telecommunications services.
Pub. L. 103-322, Sec. 250007(1)(B), added par. (5) relating to
transactions involving use of access devices issued to persons
other than user.
Subsec. (a)(6). Pub. L. 103-414, Sec. 206(a)(2), added par. (6)
relating to scanning receivers or other hardware or software used
to obtain unauthorized access to telecommunications services.
Pub. L. 103-322, Sec. 250007(1)(B), added par. (6) relating to
solicitations which offer access devices or information regarding
access devices.
Subsec. (a)(7). Pub. L. 103-322, Sec. 250007(1)(B), added par.
(7).
Subsec. (c)(1). Pub. L. 103-322, Sec. 330016(2)(I), substituted
"fine under this title or twice the value obtained by the offense,
whichever is greater, or imprisonment" for "fine of not more than
the greater of $10,000 or twice the value obtained by the offense
or imprisonment".
Pub. L. 103-322, Sec. 250007(2), substituted "(a)(2), (3), (5),
(6), or (7)" for "(a)(2) or (a)(3)".
Subsec. (c)(2). Pub. L. 103-414, Sec. 206(b), substituted
"(a)(1), (4), (5), or (6)" for "(a)(1) or (a)(4)".
Pub. L. 103-322, Sec. 330016(2)(I), substituted "fine under this
title or twice the value obtained by the offense, whichever is
greater, or imprisonment" for "fine of not more than the greater of
$50,000 or twice the value obtained by the offense or
imprisonment".
Subsec. (c)(3). Pub. L. 103-322, Sec. 330016(2)(I), substituted
"fine under this title or twice the value obtained by the offense,
whichever is greater, or imprisonment" for "fine of not more than
the greater of $100,000 or twice the value obtained by the offense
or imprisonment".
Subsec. (e)(1). Pub. L. 103-414, Sec. 206(c)(1), inserted
"electronic serial number, mobile identification number, personal
identification number, or other telecommunications service,
equipment, or instrument identifier," after "account number,".
Subsec. (e)(5), (6). Pub. L. 103-322, Sec. 250007(3)(A), (B), and
Pub. L. 103-414, Sec. 206(c)(2), (3), amended subsec. (e)
identically, striking "and" at end of par. (5) and substituting ";
and" for period at end of par. (6).
Subsec. (e)(7). Pub. L. 103-414, Sec. 206(c)(4), added par. (7)
defining "scanning receiver".
Pub. L. 103-322, Sec. 250007(3)(C), added par. (7) defining
"credit card system member".
1990 - Subsec. (f). Pub. L. 101-647 inserted at end "For purposes
of this subsection, the term 'State' includes a State of the United
States, the District of Columbia, and any commonwealth, territory,
or possession of the United States."
1986 - Subsec. (f). Pub. L. 99-646 which directed that subsec.
(f) be amended by substituting "chapter 224 of this title" for
"title V of the Organized Crime Control Act of 1970 (18 U.S.C. note
prec. 3481)" was executed by making the substitution for "title V
of the Organized Crime Control Act of 1970) 18 U.S.C. note prec.
3481)" to reflect the probable intent of Congress.
TRANSFER OF FUNCTIONS
For transfer of the functions, personnel, assets, and obligations
of the United States Secret Service, including the functions of the
Secretary of the Treasury relating thereto, to the Secretary of
Homeland Security, and for treatment of related references, see
sections 381, 551(d), 552(d), and 557 of Title 6, Domestic
Security, and the Department of Homeland Security Reorganization
Plan of November 25, 2002, as modified, set out as a note under
section 542 of Title 6.
REPORT TO CONGRESS
Section 1603 of Pub. L. 98-473 directed Attorney General to
report to Congress annually, during first three years following
Oct. 12, 1984, concerning prosecutions under this section.
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