BILL NUMBER:S437

TITLE OF BILL:
An act
to amend the penal law, in relation to theft of credit card account
numbers and debit card account numbers

PURPOSE:
To include the theft of credit card and debit card numbers, in
addition to theft of the cards themselves, in the definition of grand
larceny in the fourth degree.

SUMMARY OF PROVISIONS:
Section 1 amends the Penal Law by adding a new subdivision 4-a to
provide that theft of credit card and debit card numbers with the
intent of unlawful use is included within the definition of grand
larceny in the fourth degree.

Section 2 provides for an effective date of November first after
enactment.

EXISTING LAW:
Section 155.30 of the Penal Law provides that theft of credit or debit
cards is grand larceny in the fourth degree, however, the law is
silent with regard to theft of credit or debit card numbers.

              

JUSTIFICATION:
While it is an E felony to steal property consisting of a credit card
or debit card, if a thief steals a credit card account number or a
debit card account number instead of the actual, physical card, no
crime has been committed until the thief actually uses the account
number and obtains goods, money or services. Previously, in order to
use a stolen credit or debit card, a person would need to physically
possess the card. Now that goods and services can be ordered by phone
or over the Internet, only the card number and not the physical card
is necessary to use the stolen number fraudulently. Stolen card
numbers can also be encoded on plastic to create fraudulent credit or
debit cards.

Card numbers can be stolen in a variety of ways. In a retail
establishment, a credit or debit card can be entered into a device to
capture account information and then the card is returned to the
customer who is unaware that his account number has been stolen.
Dishonest employees can
copy account numbers from sales receipts or during phone orders and
thieves can steal credit card bills from the mail or hack into
personal computers. Account numbers can also be obtained through
phishing -- sending fraudulent e-mails purporting to be from
legitimate companies that ask for credit card information to be
updated or amended or re-entered by the customer in order to maintain
the business relationship.

With technological advances proceeding at a rapid pace, criminals are
finding ways to use this new technology before laws can be enacted to
address these types of crimes. This is another step for law
enforcement to use to protect the public from thieves who would steal


their personal account information and run up fraudulent credit card
bills or steal cash through their debit card.

LEGISLATIVE HISTORY:
2012:  S.1411 - Passed Senate
2011:  S.1411 - Passed Senate
2008:  S.4789 - Passed Senate
2007:  S.4789 - Passed Senate

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
November 1st after enactment.