Identity Theft In Texas 4 Felony Levels, Penalties, And Remedies

Identity theft is a significant and growing problem in Texas, affecting people of all ages and backgrounds. Texas law treats this crime seriously, with felony penalties and special protections for victims whose personal information is misused without consent. This guide explains how Texas defines identity theft, what conduct is prohibited, the range of criminal penalties, and what victims can do to protect themselves and pursue relief.

How Texas Law Defines Identity Theft

Under Texas law, identity theft is primarily addressed as fraudulent use or possession of identifying information in the Texas Penal Code. The focus is not on stealing physical items, but on misusing data that identifies a person.

Core Legal Definition

Texas Penal Code § 32.51 makes it a crime to, with intent to defraud or harm another, obtain, possess, transfer, or use an item of someone else’s identifying information without lawful authorization. The statute applies whether the person whose data is misused is living or deceased, and it covers infants, minors, adults, and elderly individuals equally.

• Intent requirement: The prosecution must show that the accused acted with the intent to defraud or harm another.
• Prohibited conduct: Obtaining, possessing, transferring, or using identifying information without consent or legal authority.
• Covered individuals: Any natural person, including children, adults, senior citizens, and deceased individuals.

What Counts as “Identifying Information”?

Texas law includes a broad range of data under the term identifying information. Any information that can be used to uniquely identify a person or access their accounts can fall within the statute.

Examples include:

• Full name and date of birth
• Social Security number or other government-issued identification numbers
• Driver’s license or state ID numbers
• Credit card, debit card, or bank account numbers
• Unique biometric data such as fingerprints or retina images
• Telephone or telecommunication device identifiers
• Routing numbers and other financial account identifiers

Because the definition is intentionally broad, new forms of digital identifiers and access credentials can also fall under this statute if they are capable of identifying a person or accessing their financial, medical, or other sensitive records.

Presumption of Intent Under Texas Statute

Proving intent is a key issue in fraud-related cases. To assist prosecutors, Texas law provides a statutory presumption in certain circumstances. If a person possesses the identifying information of three or more individuals, living or dead, the law presumes that the person intended to harm or defraud.

This presumption does not automatically guarantee a conviction, but it shifts the evidentiary landscape. A defendant can present evidence to rebut the presumption, such as demonstrating lawful authorization or showing that they lacked intent to defraud.

Felony Grading and Penalties for Identity Theft in Texas

Identity theft in Texas is always treated as a felony offense, but the level of felony and potential punishment depend on the number of items of identifying information involved.

Number of Items and Offense Level

Under Texas Penal Code § 32.51, each distinct piece of identifying information (e.g., a single Social Security number, a bank account number, or a credit card number) is counted as an item. The total number of items obtained, possessed, transferred, or used determines the severity of the charge.

These ranges are set by the Texas Penal Code and reflect the seriousness with which the state treats large-scale identity theft schemes.

Enhanced Penalties and Special Circumstances

In some situations, penalties may be enhanced beyond the base ranges above:

• Elderly victims: If the offense targets an elderly individual, enhancements may apply, consistent with Texas’s broader protections for vulnerable adults.
• Sex offense facilitation: Penalties may be increased when identity theft is committed to facilitate a registerable sex offense.
• Federal charges: Identity theft that crosses state lines, involves federal benefits, or triggers specific federal statutes may result in separate federal charges, including aggravated identity theft under 18 U.S.C. § 1028A.

Federal penalties typically run in addition to state charges and can involve mandatory consecutive prison terms in certain aggravated identity theft cases.

Restitution and Financial Consequences

Apart from prison and fines, Texas courts have authority to order restitution to compensate victims for financial harm caused by identity theft.

Restitution can include:

• Lost income due to time spent resolving the identity theft
• Attorney’s fees and costs incurred in clearing the victim’s name
• Other documented expenses directly caused by the offense, such as fees for credit monitoring or replacement documents

Restitution orders are separate from civil lawsuits. Victims may still choose to pursue civil claims against offenders or businesses that failed to safeguard information adequately.

Texas Identity Theft Enforcement and Protection Act

Beyond criminal penalties, Texas has enacted the Identity Theft Enforcement and Protection Act, which focuses on how businesses handle sensitive personal information.

Key features include:

• A duty on businesses to protect and properly dispose of personal identifying information they collect and store.
• Potential civil penalties and enforcement actions if businesses fail to comply with data security obligations.
• Requirements related to breach notifications and safeguards designed to reduce the risk of identity theft.

These provisions are designed to complement the criminal statute by reducing opportunities for data theft and misuse at the organizational level.

Victim Remedies Under Texas Law

Texas provides specific mechanisms to help identity theft victims restore their reputations and correct records once the crime is discovered.

Court Order Declaring Identity Theft Victim Status

Victims in Texas may seek a court order affirming that they are victims of identity theft. This order can be used to assist in clearing criminal records and preventing future confusion if an offender used the victim’s identity when committing other crimes.

Such an order can be helpful when:

• False criminal charges or warrants exist under the victim’s name.
• Creditors or collection agencies dispute that a debt resulted from identity theft.
• Government agencies require proof that the victim did not authorize certain actions or applications.

Working With Credit Reporting Agencies

Federal and state law provide tools for correcting credit reports and preventing further fraudulent accounts in the victim’s name.

• Fraud alert: Victims can request a free fraud alert from one of the major credit bureaus (Equifax, Experian, or TransUnion). The bureau contacted must notify the others, and the alert requires businesses to verify identity before issuing new credit.
• Security freeze: A victim may place a security freeze on their credit report, preventing new creditors from accessing it without the victim’s authorization.
• Correction of errors: Victims can dispute fraudulent accounts and entries, and creditors must respond and, in many cases, provide documentation used in the fraudulent application.

These tools help stop ongoing misuse of the victim’s identity and clean up the damage to their credit history.

Practical Steps If Your Identity Is Stolen

Acting quickly can limit the harm of identity theft. Official guidance from the Texas Attorney General and federal agencies outlines a practical sequence of steps for victims.

Immediate Actions

• Contact the fraud departments of affected banks, credit unions, and creditors; request that compromised accounts be closed or frozen.
• Change passwords, PINs, and login information for email, financial accounts, and any accounts using similar credentials.
• Place a fraud alert on your credit report and consider a security freeze if the situation appears severe.

Reporting and Documentation

• File a report with your local police department and obtain a copy of the report.
• Use the Federal Trade Commission’s IdentityTheft.gov website to create an identity theft recovery plan and an FTC identity theft report.
• Review your credit reports for unfamiliar accounts and dispute fraudulent items in writing, providing copies of police and FTC reports as needed.

Special Situations

Some forms of identity theft require additional steps:

• Tax-related identity theft: Contact the Internal Revenue Service (IRS) and review guidance from IRS Identity Theft Central, which may require submitting IRS Form 14039 (Identity Theft Affidavit).
• Student loans: If student loans were fraudulently obtained, contact loan servicers and follow their identity theft procedures, often involving affidavits and documentation.
• Collections: Debt collectors must notify creditors when identity theft is claimed, and federal law restricts attempts to sell or transfer debt caused by identity theft.

Common Defenses and Legal Issues in Identity Theft Cases

For individuals accused of identity theft, several legal issues can arise. While this guide is not legal advice, understanding common defenses illustrates how courts analyze these cases.

• Lack of intent to defraud or harm: Because intent is a required element, defendants may argue that they did not intend to defraud or harm anyone, or that possession of information was accidental or for a lawful purpose.
• Consent or authorization: In some situations, the accused may claim that the person whose data was used gave permission, such as sharing bank information for a joint purchase.
• Insufficient proof that information was identifying: The defense may challenge whether the data truly qualifies as identifying information under the statute.
• Chain of custody and evidence reliability: As with other criminal cases, issues may arise around how digital evidence was obtained and whether it has been altered.

Because identity theft charges can lead to severe felony consequences, anyone accused of such offenses should seek legal counsel familiar with Texas criminal law.

Frequently Asked Questions About Texas Identity Theft Law

Is identity theft always a felony in Texas?

Yes. Under Texas Penal Code § 32.51, fraudulent use or possession of identifying information is always classified as a felony. The level of felony (state jail, third-degree, second-degree, or first-degree) depends on the number of identifying items involved.

Does Texas law protect children and elderly victims differently?

Texas identity theft law applies to people of any age, including children, adults, and elderly individuals. However, penalties can be enhanced when offenses are committed against elderly victims, reflecting their increased vulnerability.

Can I clear my criminal record if someone used my name in a crime?

Texas law allows victims of identity theft to seek a court order stating they are victims. This order can be used to help clear criminal records and correct mistaken identity issues arising from an offender using the victim’s personal information.

What should I do first if I suspect identity theft?

Immediately contact affected financial institutions to freeze or close compromised accounts, change your passwords, and place a fraud alert on your credit report. Then file reports with local law enforcement and the FTC through IdentityTheft.gov, and review your credit reports for unauthorized accounts.

Can businesses be penalized for failing to protect my data?

Yes. Under the Texas Identity Theft Enforcement and Protection Act, businesses have a duty to safeguard personal information, and violations can lead to civil penalties and enforcement actions. These measures are separate from criminal charges against individual offenders.

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Author

Sneha TeteBeauty & Lifestyle Writer

 

Sneha is a relationships and lifestyle writer with a strong foundation in applied linguistics and certified training in relationship coaching. She brings over five years of writing experience to waytolegal,  crafting thoughtful, research-driven content that empowers readers to build healthier relationships, boost emotional well-being, and embrace holistic living.

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