US Carding Laws

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Carding is a form of fraud involving the use of stolen bank card data for illegal transactions such as shopping, cash withdrawals, or money laundering. In the United States, carding is considered a serious crime and is regulated by strict federal laws. Let's look at the main aspects of US legislation on carding.

1. Basic laws applicable to carding​

1.1 Access Device Fraud Act (18 U.S.C. § 1029)​

• This law is aimed at combating the use of stolen or counterfeit "access devices" (e.g. credit cards, debit cards, CVV codes).
• Key points:
  • Prohibits the production, use or distribution of counterfeit cards.
  • Criminal liability for possession of devices for creating counterfeit cards (e.g. magnetic recording devices).
  • Fines and imprisonment of up to 15 years for the first offense, up to 20 years for a repeat offense.

1.2. Computer Fraud and Abuse Act (18 USC § 1030)​

• This law applies if carders use hacking techniques to gain access to card data.
• The sanctions include:
  • Imprisonment for up to 10 years for the first offense.
  • Up to 20 years for repeat offense.
  • High fines (up to hundreds of thousands of dollars).

1.3. Asset Forfeiture Laws​

• If carders use stolen funds to purchase goods or property, those assets may be confiscated by the government.
• Confiscation applies even if the goods themselves have been resold.

1.4. Racketeer Influenced and Corrupt Organizations Act (RICO)​

• If carding is part of an organized criminal enterprise, the perpetrators may be subject to RICO charges.
• The sanctions include:
  • Imprisonment for up to 20 years.
  • The possibility of confiscating all assets related to criminal activity.

1.5. Victim Restitution Act​

• Carders are required to compensate for damages caused to victims (e.g. banks or cardholders).
• Compensation amounts can reach millions of dollars.

2. Examples of crimes related to carding​

2.1. Using Stolen Card Data​

• Purchasing goods or services using someone else's data.
• Transfer funds to your accounts via online payments.

2.2. Creation and distribution of counterfeit cards​

• Using skimming devices to steal data.
• Generation of counterfeit cards using specialized equipment.

2.3. Storing or selling card data​

• Possession of databases with credit card information (e.g. numbers, CVV, expiration date).
• Selling data on underground forums or the darknet.

2.4. Money Laundering​

• Using stolen funds to purchase cryptocurrency or other assets.

3. Penalties for carding in the USA​

3.1. Criminal liability​

• Imprisonment: from several years to decades (depending on the scale of the crime).
• Fines: from tens of thousands to millions of dollars.
• Asset Forfeiture: All property acquired through illegal activity may be seized.

3.2. Civil liability​

• Victims (such as banks or cardholders) can file a civil lawsuit against carders.
• The court may order carders to pay compensation for damages.

3.3. International extradition​

• If the carder is outside the United States, he may be extradited for trial.
• Examples: Alexander Vinnik, Roman Seleznev.

4. Examples of famous carding cases in the USA​

Example 1: The Albert Gonzalez Case​

• Albert Gonzalez was the mastermind behind the largest credit card data theft in U.S. history.
• He stole more than 170 million card numbers, causing billions of dollars in losses.
• Sentence: 20 years in prison.

Example 2: The Case of Roman Seleznev​

• Russian hacker Roman Seleznev was arrested in the Maldives and extradited to the United States for stealing credit card data.
• The damage amounted to more than 170 million dollars.
• Sentence: 27 years in prison.

Example 3: The Case of Joshua Samuel​

• Joshua Samuel created counterfeit cards and sold them online.
• It caused more than $600,000 in damage.
• Sentence: 12 years in prison.

5. Peculiarities of Carding Investigation in the USA​

5.1. The Role of Law Enforcement Agencies​

• The Federal Bureau of Investigation (FBI) is actively engaged in identifying and prosecuting carders.
• Cooperation with Interpol and other international organizations to solve transnational crimes.

5.2. Use of technologies​

• Analysis of transaction data to identify suspicious transactions.
• Monitoring underground forums and sites on the darknet.

5.3. Protection of victims​

• Banks and payment systems are required to notify customers of suspicious activity.
• Providing free protection against fraud (e.g. card blocking).

6. Carding prevention​

6.1 Education and Awareness​

• Informing citizens about the risks of cybercrime.
• Training in the safe use of bank cards.

6.2. Strengthening security measures​

• Using two-factor authentication (2FA).
• Protect your data with encryption.

6.3. Legislative initiatives​

• Developing new laws to combat modern forms of fraud.
• Strengthening international cooperation.

7. Conclusion​

US anti-carding laws are strict and effective. They are designed to protect the financial system, punish criminals, and prevent future crimes. However, due to the cross-border nature of cybercrime, the success of the fight against carding depends on international cooperation and the use of modern technology.

Key Takeaway: Any form of carding carries serious legal consequences, including lengthy prison sentences and large fines. The best way to avoid problems is to not engage in illegal activity.