Credit Card Fraud and Forgery Charges in Canada

The short answer

Using a stolen or fake card, making a fake document, and using a fake document as if it were real are all separate crimes under the Criminal Code. Each one carries up to 10 years in jail by indictment, and they are often charged together with fraud. In most of these cases, the key issue is knowledge: whether you knew the card was stolen or the document was false.

Credit card offences (s. 342)

Section 342 covers stealing, forging or falsifying a credit card, and having, using or trafficking in a card that you know was stolen, forged or obtained by crime. It also covers using a card that you know has been cancelled, and fraudulently obtaining or using card data, including PINs. Having tools for copying card data, such as skimming devices, is a separate offence under s. 342.01.

Forgery (ss. 366 and 367)

Forgery means making a false document, knowing it is false, with the intent that it be used as genuine to someone's harm (s. 366). Changing a real document in an important way, such as altering a date or an amount, also counts as forgery.

A "document" is defined broadly. It can include cheques, pay stubs, bank statements, letters of employment, IDs, contracts and electronic files.

Uttering a forged document (s. 368)

Uttering means using a document that you know or believe is forged as if it were real, or trying to use it that way. It also covers selling or making a forged document available for that purpose. You do not have to be the person who made the document, because knowingly using it is enough.

What the Crown must prove

Common situations

• Using a found or stolen card in stores or online.
• Using card skimming devices, or buying stolen card data online.
• Submitting fake documents for a loan, mortgage, lease or car financing application.
• Depositing altered or counterfeit cheques.

For example, a fake pay stub given to a landlord or lender to qualify for an apartment or car loan can lead to forgery, uttering and fraud charges at the same time.

The evidence in a typical case

The Crown usually relies on store or bank video, transaction and card records from the bank, IP addresses and delivery addresses for online purchases, the documents themselves and evidence of where they came from, and messages showing who made or supplied a document.

Documents made by someone else

Many people charged in forged document cases did not make the document themselves, because a broker, agent or friend prepared it for them. If you did not know the document was false, you are not guilty of uttering it. Messages and emails with the person who prepared the document can therefore be important evidence for the defence.

Penalties

Credit card offences under s. 342, forgery under s. 367 and uttering under s. 368 each carry up to 10 years by indictment, and each can also be prosecuted by summary conviction. There is no minimum sentence for any of them, so a discharge is legally possible. Restitution is often central to the outcome.

Possible defences

• No knowledge: You did not know the card was stolen or the document was false.
• Authorization: The cardholder gave you permission to use the card.
• Identity: Store video, IP addresses and delivery records do not clearly link you to the offence.
• Charter issues: Police may have exceeded their authority when searching phones or accounts.

Effects beyond the sentence

Because each of these offences carries a maximum of 10 years, a conviction can make a permanent resident inadmissible for serious criminality. Banks may also close your accounts and refuse future credit, which can affect your finances for years.

Possible outcomes

What to do now

• Keep any messages with people who prepared or supplied a document for you.
• Do not delete files, emails or phone data.
• Do not use any cards or documents connected to the case.
• Get legal advice before speaking to police, the bank or a lender.

What happens after you are charged

1. Release: Most people charged with credit card or forgery offences are released by police with an undertaking or a court date, often with conditions about contact, devices or finances.
2. Disclosure: The Crown provides its evidence, which in fraud cases is often large and can take several months to complete.
3. Crown pre-trial: Your lawyer meets with the Crown to discuss the strength of the case, repayment and possible resolutions.
4. Resolution or trial: If the case does not resolve, it is set for trial, and the Crown must prove every element beyond a reasonable doubt.

Cheque fraud and bank deposits

Some people are charged after depositing a cheque that turns out to be counterfeit or altered, often after someone asked them to deposit it and send part of the money back. Banks usually reverse the deposit and may close the account. The Crown must still prove that you knew the cheque was not genuine, so messages explaining why you made the deposit can be very important.

How we can help

We can review the evidence linking you to the card or document, and look for a resolution that protects your record. Call (647) 223-1980 for a free consultation.

Frequently asked questions