Is Identity Theft a Felony in California? Charges, Penalties & Legal Framework Explained

California ranks third in the U.S. for identity theft complaints, with over 100,000 cases reported annually. Under California Penal Code § 530.5, identity theft is classified as a “wobbler” offense, meaning it can be prosecuted as either a misdemeanor or a felony depending on the case’s severity, the defendant’s intent, prior criminal history, and the nature of the unlawful use.

This article provides a detailed overview of identity theft laws in California, including definitions, penalties, position cases, recent enforcement trends, legal defenses, victim resources, and preventive measures. Whether you are facing charges or are a victim seeking remedies, this guide will help you understand your rights and obligations under the law.

What Is Identity Theft Under California Law?

California Penal Code § 530.5 criminalizes the willful use of another person’s personal identifying information without their consent for unlawful purposes such as fraudulently acquiring credit, goods, services, or medical information. Convictions do not require proof of actual financial loss—an attempt is sufficient.

Key Legal Definitions

• Personal Identifying Information: Includes Social Security numbers, driver’s license numbers, bank accounts, birthdates, credit card details, biometric data, and more (PC § 530.55).
  
• Unlawful Purpose: Includes fraud, theft, or obtaining services under false pretenses.
  
• Intent to Defraud: Prosecutors must prove that the defendant knowingly used the information with fraudulent intent.

Felony vs. Misdemeanor Identity Theft: What’s the Difference?

▪️ Misdemeanor Identity Theft (PC 530.5(a))

• Up to 1 year in county jail
  
• Fines up to $1,000
  
• Summary probation
  

▪️ Felony Identity Theft

Charged when any of the following are true:

• The financial loss exceeds $950
  
• Multiple victims are involved
  
• The defendant is a repeat offender
  
• Offense is part of organized fraud or retail theft rings
  

Felony Penalties:

• 16 months to 3 years in state prison
  
• Up to $10,000 in fines
  
• Loss of firearm rights under PC § 29800
  
• Immigration consequences for non-citizens
  
• Mandatory restitution to victims

Subsections of California Penal Code § 530.5

Subsection	Description
530.5(a)	Willful use of personal data for unlawful purposes
530.5(c)	Possession of data with intent to commit theft
530.5(d)(1)	Sale or transfer of personal information to aid illegal activity
530.5(d)(2)	Knowingly selling information for unauthorized use

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🧾 Case Law & Judicial Interpretation

People v. Facundo (2003)

The California Supreme Court held that “use” of personal information must involve employment of the data to achieve an unlawful goal, not just mere possession.

Subsequent Appellate Rulings

Clarified that mere possession of personal data without proven intent does not meet the elements of PC § 530.5(c).

Recent Cases & Enforcement Trends

2023 Bay Area ID Theft Ring

Three men were charged with 34 felonies after stealing over $100,000 worth of merchandise using fraudulent identities across multiple counties. This illustrates California’s aggressive stance on multi-jurisdictional schemes.

2025 Legislative Crackdown

New laws such as AB 2943 and SB 1416 enhance penalties for organized theft and allow prosecutors to aggregate the value of stolen goods across counties, helping meet the felony threshold.

Federal Collaboration: ITPEA

Under the Identity Theft Penalty Enhancement Act (ITPEA), aggravated identity theft involving serious crimes like terrorism or immigration fraud can lead to mandatory 2–5 year sentence enhancements.

Prosecution Statistics (2015–2023)

• 60% of identity theft cases are charged as felonies
  
• Conviction rates: 85% for misdemeanors, 92% for felonies
  
• Urban counties (e.g., Los Angeles, San Diego) file more felony charges than rural areas
  

Defense Strategies in Identity Theft Cases

1. Lack of Intent: Arguing that the defendant did not act with fraudulent intent
   
2. False Accusation: Proving the defendant was wrongly accused (e.g., mistaken identity)
   
3. Unlawful Search: Suppressing evidence from unconstitutional searches
   
4. Open-to-Wobbler Pleas: Negotiating a plea to reduce a felony to a misdemeanor
   
5. Post-Conviction Relief: Petitioning for expungement under PC § 1203.4 or sealing under Prop 64

Victim Resources & Civil Remedies

1. Reporting Identity Theft

• File a police report
  
• Contact the California DOJ’s Consumer Identification Division ([email protected])
  
• Use the FTC’s IdentityTheft.gov to create an official Identity Theft Report
  

2. Protecting Credit

• Freeze credit reports via Equifax, Experian, and TransUnion
  
• California residents can use free security freezes under Civil Code § 1785.11.3
  

3. Restitution & Civil Claims

• Victims can seek restitution during criminal proceedings
  
• Sue in small claims court to recover credit-repair and out-of-pocket costs

Emerging Trends & Best Practices

Synthetic Identity Theft

Offenders create fake profiles using real and fabricated data—legislators are considering expanding § 530.5 to explicitly target this type of fraud.

Data Broker Opt-Out

Thanks to the California Consumer Privacy Act (CCPA), residents can request the removal of their personal data from broker sites (e.g., Whitepages, Spokeo) using the DMA opt-out list: dmaresponsibility.org

Preventive Tips

• Use multi-factor authentication
  
• Enable security alerts on banking and credit apps
  
• Avoid using public Wi-Fi without a VPN
  
• Use hardware security keys like YubiKey for added protection

FAQs

Is identity theft always a felony in California?

No. It is a wobbler offense. Felony charges apply based on the severity, financial harm, repeat offenses, or involvement in organized crime.

Can you be charged if no money was stolen?

Yes. Even attempted use of someone else’s personal information without consent is a crime under PC § 530.5.

Can a first-time offender avoid prison?

Often yes. Judges may grant probation or reduce charges to misdemeanors through plea negotiations, especially if minimal harm occurred.

Legal Resources

• California Penal Code § 530.5 – LegInfo
  
• CA DOJ Identity Theft Guide
  
• FTC IdentityTheft.gov
  
• DMA Data Broker Opt-Out

Conclusion: Know Your Rights—Whether Victim or Accused

Identity theft in California is taken seriously—especially in the context of organized fraud or large-scale financial loss. With harsh felony penalties and increased law enforcement collaboration, both victims and accused individuals must act swiftly.

Victims should secure their credit and report theft immediately, while defendants must seek legal representation to explore defenses and sentencing alternatives. Understanding the nuances of Penal Code § 530.5, recent case law, and prosecutorial trends is key to protecting your future.

If you need legal assistance, contact qualified California defense attorneys like Johnson Criminal Law Group or Shouse Law Group to evaluate your case and protect your rights.