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 Michigan, credit card fraud and identity theft are considered serious criminal offenses. Under Michigan law, credit card fraud may include the unauthorized use of a credit card to make purchases, as well as the theft of credit card information for making card-not-present transactions. These offenses are covered under various statutes, such as the Michigan Penal Code (Act 328 of 1931), which includes provisions for crimes like stealing a financial transaction device (which includes credit cards), possession of stolen or fraudulent financial transaction devices, and using or attempting to use the device to commit fraud (MCL 750.157n and MCL 750.157p). Penalties for credit card fraud can range from misdemeanors to felonies, depending on the severity of the crime, the amount of money involved, and the criminal history of the offender. Identity theft is specifically addressed under the Identity Theft Protection Act (MCL 445.61 to MCL 445.77), which makes it illegal to obtain, possess, transfer, or use someone else's personal identifying information without authorization for the purpose of committing an unlawful act. Violations can lead to felony charges, with penalties including imprisonment, fines, and restitution. Victims of credit card fraud or identity theft in Michigan are encouraged to report the crime to law enforcement and may also need to contact their financial institutions to protect their accounts.