Credit card fraud is when someone uses your credit card or credit account to make a purchase you didn't authorize. This activity can happen in different ways. For example, if you lose your credit card or have it stolen, it can be used to make purchases or other transactions, either in person or online. And fraudsters can also steal your credit card account number, PIN and security code to make unauthorized transactions, without needing your physical credit card—unlawful transactions like these are known as card-not-present fraud.

Identity theft involves the use of illegally obtained information about you, like your name, birthday, Social Security number, credit card numbers and more, in order to use existing credit accounts or open new ones in your name. When this happens, criminals capture the spending power of your credit while you get stuck with the bill.

In Illinois, credit card fraud and identity theft are serious criminal offenses. Under the Illinois Criminal Code (720 ILCS 5/16-30), credit card fraud can include making unauthorized transactions with someone else's credit card or card information, as well as possessing, selling, or transferring such information with fraudulent intent. Penalties for credit card fraud vary depending on the value of the unauthorized transactions and can range from a Class A misdemeanor to a Class 3 felony. Identity theft is addressed under 720 ILCS 5/16-30 as well, and it involves using another person's personal identifying information without consent, typically for economic gain. The severity of the offense and the corresponding penalties are based on factors such as the amount of financial damage and the victim's circumstances. Both state and federal laws, including the Fair Credit Reporting Act (FCRA) and the Identity Theft and Assumption Deterrence Act, provide additional protections and establish the responsibilities of various parties in preventing and responding to credit card fraud and identity theft. Victims of such crimes have the right to file a police report and may also contact credit bureaus to place fraud alerts on their credit files.