Senate Bill S4627

                                
 
BILL NUMBER: S4627

SPONSOR: ANTONACCI
 
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 enact-
ment.
              

 
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 establish-
ment, 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--send-
ing 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:

2018: S.4335 - Referred to Codes
2016: S.1259 - Referred to Codes
2014: S.437 - Referred to Codes
2012: S.1411 - Passed Senate

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
November 1st after enactment.