Credit Card Fraud – Laws, Penalties & Defences in Australia

Credit card fraud is one of the most common and serious types of financial crime in Australia. It includes using stolen, forged, or fake credit cards, accessing someone’s credit account without permission, or misusing card details to make fraudulent purchases.

With the rise in online transactions, identity theft, and phishing scams, Australian law enforcement and financial institutions are cracking down hard on offenders. Penalties can include significant jail time, hefty fines, and a criminal record that may affect employment, international travel, and future financial access.

This page explains what constitutes credit card fraud, how charges are laid, how the court process works, common legal defences, and the applicable laws and penalties in each Australian state and territory.

What Is Credit Card Fraud?

Credit card fraud refers to the unauthorised use or manipulation of a credit card or credit card information to dishonestly gain financial advantage. This includes:

• Using someone else’s card or details without consent

• Skimming or cloning card information

• Creating fake cards or identities

• Making false reports of lost or stolen cards

• Overcharging, double charging, or misusing employer/company cards

The prosecution must prove that you:

1. Used or possessed a credit card or card information

2. Did so dishonestly

3. Intended to gain a benefit or cause a loss

How Are Credit Card Fraud Charges Laid?

Investigations often begin with:

• Bank alerts or disputed transactions

• Surveillance footage

• Device or IP address tracing

• Customer or cardholder complaints

• Undercover operations or cybercrime units

Police may lay charges following:

• Search warrants

• Seizure of digital evidence (phones, devices)

• Admission during interview

• Referral from banks or financial services

Court Process for Credit Card Fraud

Credit card fraud may be heard in:

• Local/Magistrates’ Court – for low-value or first-time matters

• District/County/Supreme Court – for large-scale or organised fraud

The court process includes:

1. First appearance – Enter a plea

2. Disclosure of evidence – Provided by prosecution

3. Negotiation or trial – May result in reduced charges or plea deals

4. Sentencing – Based on the value of fraud, level of planning, and prior record

Commonwealth Law (for inter-state, online or postal card fraud)

• Legislation: Criminal Code Act 1995 (Cth) – Sections 134.2, 135.1

• Offences:

  • Using false identity, forged card data, or deception

  • Postal or telecommunications fraud

• Penalty:

  • Up to 10 years’ imprisonment

  • Commonly applies to online shopping scams or cross-border misuse

Defences to Credit Card Fraud

Common legal defences include:

• Lack of intent – You didn’t know you were acting dishonestly

• Mistaken identity – You weren’t the person who used the card

• Authorisation – You had permission to use the card or account

• Mental health – Affecting your judgment or decision-making

• No benefit gained – Attempted but unsuccessful use

In some cases, early repayment and cooperation can lead to reduced penalties or non-conviction outcomes.