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 Vermont, credit card fraud and identity theft are considered serious criminal offenses. Vermont law (13 V.S.A. § 2030) specifically addresses credit card fraud, making it illegal to use, obtain, or possess a credit card without the consent of the cardholder or to use or possess any card, with the intent to defraud, that has been revoked, cancelled, or expired. Penalties for credit card fraud can include fines, restitution, and imprisonment, depending on the severity of the offense. Identity theft is also illegal under Vermont law (13 V.S.A. § 2030), which prohibits the unauthorized use of another person's personal identifying information to obtain credit, goods, services, or anything else of value. Victims of identity theft or credit card fraud in Vermont are encouraged to report the crime to local law enforcement and may also need to contact their financial institutions and credit reporting agencies to mitigate the damage. Additionally, federal laws such as the Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) provide certain protections to consumers, allowing them to dispute unauthorized charges and limiting their liability for fraudulent transactions.