X. ACCESS DEVICES REGISTRATION ACT (R.A. No. 8484) Flashcards
X. ACCESS DEVICES REGISTRATION ACT (R.A. No. 8484)
A. Access Devices (Section 3)
Not just the physcl card
Any Meth2Access Acct & Get MSG
Counterfeit AD vs unAuthrzd AD
Here’s a breakdown of the key points for these rules on Access Devices:
1. Broad Definition of Access Device (a):
* An access device isn’t just
PHYSICAL card.
It can be
any METHOD used to access
an account and get money, goods, or services.
* Examples: Credit cards, debit cards, account numbers, PINs, phone numbers used for ride-sharing apps (with PINs).
2. Counterfeit Access Device (b):
* This refers to a fake or altered access device created with the intention of fraud.
* Examples: Stealing someone’s credit card information and creating a new card with those details, creating a fake PIN for someone else’s account.
3. Unauthorized Access Device (c):
* This covers legitimate access devices that can’t be used for their intended purpose anymore.
* Examples: Lost or stolen credit cards, expired debit cards, a revoked access code for a service. Importantly, it also includes devices obtained with the intention of fraud, even if they seem legitimate (e.g., applying for a credit card with fake information).
These definitions are crucial for identifying and preventing access device fraud. By understanding what constitutes a valid and an unauthorized device, individuals and institutions can better protect themselves from financial crimes.
X. ACCESS DEVICES REGISTRATION ACT (R.A. No. 8484)
B. Prohibited Acts (Section 9)
Key Points of Access Device Fraud Rules:
The rules outlined in Section 9 aim to prevent illegal activity involving access devices, like credit cards. Here’s a breakdown of key points with examples:
1) Unauthorized Access Devices:** It’s illegal to use, possess, or traffic in lost, stolen, expired, or revoked cards (Section 9(c), (e), (b)). Example: Finding a credit card on the street and using it to buy something violates this.
2) Counterfeit Devices:** Producing, trafficking in, or possessing fake or altered credit cards is prohibited (Section 9(a), (e)). Example: Cloning a credit card with someone else’s information falls under this category.
3) Fraudulent Applications:** Applying for a credit card with false information is illegal (Section 9(d)). Example: Inflating your income on a credit card application is a violation.
4) Equipment for Making Fake Devices:** Owning or selling equipment specifically designed to create counterfeit access devices is illegal unless you’re authorized (Section 9(f)). Example: Selling machines that can skim credit card information for fraudulent purposes would violate this.
5) Deception and Tampering:** The rules forbid activities like tampering with sales slips to reflect false approvals or amounts (Section 9(h), (l), (m)). Example: A cashier writing a higher amount on a sales slip than what the customer agreed to pay would be considered fraud.
6) Sharing Access Device Information:** Disclosing credit card details like account numbers without the owner’s permission is illegal (Section 9(i)). Example: Sharing a friend’s credit card number to help them make an online purchase could be a violation.
7) Obtaining Goods/Services with Fraudulent Intent:** Using a stolen card to buy something or fleeing after a fraudulent purchase is illegal (Section 9(j)). Example: Stealing a credit card and using it at a store is a clear violation.
8) Soliciting Access Devices or Information:** Selling credit card information or offering unauthorized cards is prohibited (Section 9(o)). Example: Advertising a service that provides stolen credit card numbers is illegal.
These are just some of the key points. Remember, these rules are in place to protect consumers and financial institutions from fraud.
X. ACCESS DEVICES REGISTRATION ACT (R.A. No. 8484)
C. Frustrated and Attempted Access Device Fraud (Section 12)
Frustrated and Attempted Access Device Fraud Explained
Section 12 deals with situations where someone attempts to commit access device fraud (listed in Section 9) but fails for reasons beyond their control.
There are two key scenarios:
- Frustrated Access Device Fraud (2/3 penalty): This applies when someone takes all the necessary steps to commit fraud but is stopped by an unforeseen obstacle. Example: Someone steals a credit card and tries to use it at an ATM, but the ATM malfunctions before the transaction is complete. In this case, the perpetrator would face a penalty two-thirds as severe as if they had successfully stolen money.
- Attempted Access Device Fraud (1/2 penalty): This applies when someone starts to commit fraud but stops on their own or is interrupted before completing all the necessary steps. Example: Someone tries to use a stolen credit card at a store but gets cold feet and abandons the purchase before swiping the card. Here, the penalty would be half as severe as if they had completed the fraudulent purchase.
Key Points:
* The severity of the punishment depends on how far the perpetrator got in their attempt.
* The focus is on the offender’s actions and intent, not the outcome.
* There must be a clear act towards the fraudulent use of the access device.
Challenging Multiple Choice Questions on Access Devices:
Question 1:
You find a credit card on the sidewalk. It has the owner’s name and account number on it. You can still use it to make purchases online because it isn’t physically damaged.
A. True
B. False
Answer: B. False
Legal Reasoning:
This scenario describes an unauthorized access device (option (c) in the provided definitions). Even though the card itself might be functional, it’s considered unauthorized because it’s lost (found on the sidewalk). Using a lost or found credit card falls under access device fraud, and there are legal repercussions for such actions.
Challenging Multiple Choice Questions for Access Device Fraud:
Question 1:
Sarah finds a credit card on the ground and uses it to buy groceries. Which of the following is NOT a violation of the access device fraud statute outlined in Section 9?
(a) Trafficking in an unauthorized access device
(b) Using an unauthorized access device with intent to defraud
(c) Possessing a counterfeit access device
(d) Disclosing information imprinted on the access device
Answer: (c) Possessing a counterfeit access device
Reasoning: The scenario describes using a lost credit card, which is considered an unauthorized access device under Section 9(c). While Sarah is definitely committing access device fraud, the statute defines a counterfeit device as one that is fictitious, altered, or forged (Section 1030, US Code). A lost card is simply misplaced, not created fraudulently.
Question 2:
Your friend gives you their phone number and a one-time PIN (personal identification number) to access their ride-sharing account and hail a cab for them. This is a legitimate use of an access device according to the definitions provided.
A. True
B. False
Answer: B. False
Legal Reasoning:
While a phone number and PIN can be access devices (as defined in (a)), this scenario doesn’t quite fit the criteria. The definition specifies that the access device should be used to obtain goods or services for the holder of the device. In this case, you’re using your friend’s access for their benefit, but it’s not authorized access for yourself. This might be a gray area depending on specific laws, but generally, it’s recommended to have explicit permission before using someone else’s access device.
Question 2:
Mark works at a restaurant. A customer gives Mark a credit card with a different name on it, but tells Mark to run it through the machine anyway. If Mark processes the card, which provision(s) of the access device fraud statute could he be violating?
(a) (g) only
(b) (i) and (m) only
(c) (c) and (g)
(d) (c), (g), and (l)
Answer: (d) (c), (g), and (l)
Reasoning: Mark is being pressured to commit fraud. Processing the card falls under using an unauthorized access device with fraudulent intent (Section 9(c)). Additionally, Mark is being induced to participate in the fraud by the customer (Section 9(g)). There’s also a possibility the customer tampered with the sales slip to reflect a different approval number than what was given (Section 9(l)).
Challenging Multiple Choice Questions on Frustrated and Attempted Access Device Fraud:
Question 1:
John steals a credit card and heads to a store. He approaches the cashier, intending to use the stolen card, but realizes there’s a long line and decides to abandon the plan. John leaves the store without attempting to use the card. Which scenario from Section 12 applies to John, and why?
(a) Frustrated Access Device Fraud (2/3 penalty)
(b) Attempted Access Device Fraud (1/2 penalty)
(c) Neither - John’s actions don’t constitute access device fraud under Section 12
Answer: (b) Attempted Access Device Fraud (1/2 penalty)
Reasoning: While John clearly possessed the stolen card with fraudulent intent (Section 9 considerations), Section 12 deals with attempts to use the device. John took a clear step towards using the card by approaching the cashier, but stopped on his own before completing all the necessary steps (swiping or inserting the card). This qualifies as attempted access device fraud with a lesser penalty.
Question 2:
Sarah finds a credit card on the ground and pockets it. Later that day, she tries to use the card at a restaurant but is denied due to insufficient funds. Can Sarah be charged with frustrated access device fraud under Section 12?
(a) Yes, because she possessed the card with fraudulent intent.
(b) No, because the insufficient funds were beyond her control.
(c) No, because finding a lost card doesn’t constitute possessing a stolen device.
Answer: (c) No, because finding a lost card doesn’t constitute possessing a stolen device.
Reasoning: Frustrated access device fraud requires the offender to take all necessary steps to use a stolen or unauthorized device. While possessing the found card might be suspicious, Section 12 applies specifically to stolen or fraudulent devices (Section 9). Finding a lost card, even with the intent to use it, wouldn’t be considered possessing a stolen device under this statute.
