Point-of-Sale (POS) Fraud Defense Lawyers

POS Fraud is a Serious Federal Offense that Requires Serious Legal Representation

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Point-of-sale (POS) fraud costs retailers, casinos, banks, and other businesses billions of dollars per year. While these businesses deploy various technological defenses to try to prevent POS fraud, their defenses are often at least a step behind.

But, these businesses aren’t the only ones focused on POS fraud. Federal authorities are cracking down on POS fraud, too.

The Federal Bureau of Investigation (FBI), U.S. Department of Justice (DOJ), and U.S. Secret Service work together to uncover and prosecute all forms of POS fraud. The Internal Revenue Service (IRS) gets involved in many cases as well. Federal investigations targeting POS fraud can expose individuals to a wide range of federal charges—all of which carry substantial penalties.

Highly Experienced Defense Counsel for Federal POS Fraud Cases

Our team has extensive experience handling all types of federal fraud investigations and prosecutions, including those involving POS fraud. Many of our lawyers are former DOJ prosecutors, and our team also includes former Special Agents with the FBI, IRS, U.S. Secret Service, and other federal law enforcement agencies.

As a result, we are intimately familiar with how these agencies pursue serious criminal charges in POS fraud investigations. We use this familiarity to our clients’ advantage, formulating defense strategies based on what we expect federal agents and prosecutors will do, and relying on our past experience to efficiently target favorable results for our clients.

Common Targets of Federal POS Fraud Investigations

Federal authorities have been targeting all forms of point-of-sale fraud in recent years. This includes POS fraud involving retail POS systems, ATMs, slot machines, and a wide range of other point-of-sale devices. Some of the more common examples of targets in federal POS fraud investigations include:

Processing and Then Erasing Customer Transactions

While many POS fraud investigations target the use of skimming devices and other external threats to customers’ data, federal authorities have also recently shown increased interest in internal POS fraud cases. These cases involve workers processing customer transactions, diverting customers’ funds to their personal accounts, then deleting the transactions from their employers’ POS systems. Despite this deletion, these transactions still create an electronic paper trail—and this trail leads federal agents directly to perpetrators in many cases.

Installing Skimming Devices on POS Systems

Skimming has long been a priority for the FBI and U.S. Secret Service, and both agencies have information on their websites warning consumers about the risk of this form of POS fraud. Investigations focused on taking down skimming operations can lead to multiple federal charges, and individuals prosecuted in these cases can face both substantial fines and long-term federal imprisonment.

Chargeback Fraud

Chargeback fraud is another priority for the FBI and U.S. Secret Service, particularly when it involves organized criminal operations. This form of POS fraud, like others, costs both retailers and their credit card processors, and this means that it implicates not only general federal fraud statutes, but the federal bank fraud statutes as well.

Other Fraudulent Activities and Transactions

Point-of-sale fraud can take many other forms as well, and all forms can lead to investigations and charges when they are brought to the attention of federal authorities. From credit card testing fraud to phishing scams that involve collecting consumers’ email addresses during POS transactions, our lawyers can provide experienced defense representation for all POS fraud-related matters.

Put our highly experienced team on your side

Dr. Nick Oberheiden

Founder

Attorney-at-Law

Lynette S. Byrd

Former DOJ Trial Attorney

Partner

Brian J. Kuester

Former U.S. Attorney

Hon. Kevin McCarthy

55th Speaker, U.S. House of Representatives (ret.)

Government Consultant

Mike Pompeo

Of Counsel

Former U.S. Secretary of State

John W. Sellers

Former Senior DOJ Trial Attorney

Linda Julin McNamara

Federal Appeals Attorney

Nicholas B. Johnson

Former Prosecutor

Roger Bach

Former Special Agent (DOJ)

Chris J. Quick

Former Special Agent (FBI & IRS-CI)

Michael S. Koslow

Former Supervisory Special Agent (DOD-OIG)

Ray Yuen

Former Supervisory Special Agent (FBI)

Potential Charges Stemming from Federal POS Fraud Investigations

In all cases, federal POS fraud investigations can lead to a wide range of federal criminal charges. At Oberheiden P.C., we focus our representation on helping our clients avoid charges whenever possible. If we can resolve your case during the investigative stage, then you won’t have to face the inherent risk of defending against serious criminal charges in federal district court.

Some examples of potential charges in federal point-of-sale fraud cases include:

• Access Device Fraud – Access device fraud involves using unauthorized means to access a financial account. Under 18 U.S.C. Section 1029, prison sentences for access device fraud can range from 10 to 20 years depending on the circumstances involved, and individuals convicted of access device fraud can face both criminal fines and forfeiture.
• Aggravated Identity Theft – Aggravated identity theft is a federal felony under 18 U.S.C. Section 1028A. This federal crime involves possessing, transferring, or using another person’s personally identifying information (PII) for any reason without their authorization. Aggravated identity theft carries statutory fines and up to two years of federal imprisonment.
• Bank Fraud – Bank fraud is a serious federal crime. Individuals convicted of defrauding financial institutions in connection with POS fraud schemes can face a $1 million fine and 30 years of federal imprisonment for each separate count of the offense.
• Illegal Kickbacks – In cases involving organized criminal operations, federal prosecutors can pursue charges related to illegal kickbacks between the individuals and organizations involved. These include charges under the federal conspiracy statute (18 U.S.C. Section 371), which imposes statutory fines and up to a five-year prison sentence for each co-conspiratory.
• Money Laundering – Federal prosecutors can pursue money laundering charges against any individual or organization that transfers funds obtained through unlawful means. The federal money laundering statute (18 U.S.C. Section 1956) is extremely broad, and it imposes maximum penalties of 20 years in prison and $500,000 or twice the value of the funds involved, whichever is greater.
• Tax Fraud – Along with money laundering charges, federal POS fraud investigations will frequently lead to tax fraud charges as well. Failing to report illegal-source income and failing to pay tax on this income are separate offenses that can carry up to a $100,000 fine ($500,000 for organizations) and five years of federal prison time.
• Wire Fraud – The federal wire fraud statute (18 U.S.C. Section 1343) is another extremely broad federal criminal statute that will apply in nearly all POS fraud cases. Under the statute, using any technological means to obtain money under false pretenses carries statutory fines and 20 years of federal prison time (or 30 years of federal prison time when the crime affects a financial institution).

These charges, among others, present enormous risks for individuals and organizations targeted in federal POS fraud investigations. While our federal defense lawyers may be able to help you avoid these charges (if you haven’t already been indicted), it is imperative that you get in touch as soon as possible.

FAQs: Defending Against Charges of Point-of-Sale (POS) Fraud

Are You Under Investigation or Facing Charges for POS Fraud? Contact Us for a Complimentary Consultation Today

Our federal defense lawyers represent clients facing all types of POS fraud allegations nationwide. If you are under investigation or facing charges, the first step is to arrange a complimentary consultation. To discuss your case with one of our highly experienced lawyers in confidence as soon as possible, call 888-680-1745 or contact us confidentially online now.