Wire Fraud and the Internet

 

Wire Fraud and the Internet

Wire fraud is a growing problem in our digital world. With the internet and online communication becoming so commonplace, it can be easier for criminals to try to take advantage. This article will explain what wire fraud is, provide some examples, discuss penalties, and offer tips on how to protect yourself.

What is Wire Fraud?

Wire fraud refers to using electronic communications like the internet, email, or telephone to make fraudulent representations in order to obtain money or property. It’s a federal crime that can lead to serious penalties.

Some common examples include:

• Phishing scams – This is when criminals send fake emails pretending to be from a real company in order to trick victims into sharing personal information like passwords or credit card numbers.
• Fake online sales – Criminals create fake ecommerce sites or online classified ads to take money for products or services they never intend to provide.
• Romance scams – Fraudsters develop online relationships under false pretenses to eventually ask for money.
• Tech support scams – Criminals pretend there are issues with your computer to gain remote access and install malware or steal financial information.
• Employment scams – Fake job listings are posted to collect application fees or personal information for identity theft.

The internet makes these types of scams easier to pull off on a wider scale. Criminals can more easily hide their real identity and location online.

Wire Fraud Penalties

Wire fraud is a felony charge that can lead to:

• Up to 20 years in prison
• Fines up to $250,000 for individuals or $500,000 for organizations
• Probation
• Restitution to victims

Penalties increase if the scheme targeted vulnerable victims like the elderly, or if the fraud is widespread and systematic. High profile examples like the college admissions scandal lead to prison time.

In addition to criminal penalties, victims can pursue civil damages. Our law firm assists clients in recovering financial losses from wire fraud.

Protecting Yourself from Wire Fraud

While the authorities work to catch and prosecute fraudsters, individuals need to exercise caution online. Here are some tips:

• Never provide sensitive information in response to unsolicited messages. Legitimate companies will not ask for things like passwords or Social Security numbers over email.
• Verify requests for money transfers, especially last minute changes in wire instructions. Call to confirm using previously known numbers.
• Don’t click links or open attachments from unknown or suspicious senders. This could lead to malware infecting your devices.
• Use secure, unique passwords online and enable multi-factor authentication when available.
• Keep software up-to-date and use antivirus protections.
• Check privacy policies and reviews before providing info to websites.
• Monitor all financial accounts regularly for unauthorized activity.
• Be wary of extreme urgency or too-good-to-be-true offers. Scammers use pressure tactics and unrealistic promises.

No one is immune from being targeted by fraudsters and scams. However, awareness and caution goes a long way in protecting yourself online.

At our law firm, we have extensive experience handling wire fraud cases and assisting victims in the aftermath. Please contact us for a free consultation if you have any questions or need legal help related to wire fraud or cybercrime issues. We have compassion for victims while aggressively pursuing perpetrators under state and federal law.

Wire Fraud Laws and Regulations

There are several key laws and regulations around wire fraud:

Federal Wire Fraud Act

This lays out the basics of the federal crime of wire fraud. It prohibits using interstate wires or communications to execute a scheme to defraud someone out of money or property.

Maximum penalties were increased to 20 years under the Sarbanes-Oxley Act in response to major corporate fraud scandals like Enron. Fines also increased substantially to act as a harsher deterrent.

U.S. Sentencing Guidelines

While judges have discretion on sentencing, there are standardized guidelines for many crimes, including wire fraud. The guidelines provide a sentencing range based on factors like:

• Scope of the fraud scheme
• Number of victims
• Losses caused
• Role of the perpetrator
• Previous criminal history

These guidelines lead to stricter penalties for larger, more complex wire fraud operations.

FTC Telemarketing Sales Rule

The Federal Trade Commission provides additional rules regarding telemarketing practices and robocalls to crack down on common tactics used in phone and internet scams. Violations can lead to major fines from the FTC.

SEC Anti-Fraud Provisions

The SEC enforces securities laws related to investment fraud and insider trading. Their anti-fraud provisions make it illegal to manipulate stock prices or misrepresent information to investors.

State Laws

Most states have their own laws prohibiting different forms of wire and internet fraud. These may cover additional cybercrimes not specified under federal statutes. State attorneys general have been active in prosecuting large tech and data privacy violations.

Wire fraud regulations are constantly adapting to the evolution of technology and new ways criminals exploit systems. Lawmakers aim to close loopholes that could enable different forms of electronic and internet fraud. Our attorneys stay up-to-date on all the latest developments in digital fraud laws and litigation trends to best serve clients.

The Government’s Burden of Proof

For a wire fraud conviction, federal prosecutors have the burden of proving certain elements beyond a reasonable doubt:

1) Scheme to Defraud

First, there must be an intentional scheme to defraud or obtain money or property under false pretenses.

There doesn’t need to be actual loss or damage for it to qualify. Just proving there was a scheme in place with intent to defraud is enough.

2) Material Misrepresentations

As part of this scheme, the perpetrator must have made false statements, omissions, or misrepresentations. This deceives the victim into giving up money or property they wouldn’t otherwise.

Prosecutors have to show the statements were material. That is, important statements that impacted the victim’s decisions.

3) Use of Interstate Wires

An interstate carrier like telephone, internet, or cable must have been used to transmit some aspect of the fraudulent scheme.

This applies to both domestic U.S. wires or international. Email, text messages, and online platforms can count.

Just showing interstate wires were used incidentally is not enough. The wires must have contributed to advancing the fraud in some way.

4) Intent to Defraud

It must be proven that false statements were made knowingly and with intent to defraud. If misrepresentations were made unintentionally or without harmful purpose, it may not qualify as wire fraud.

Proving intent often relies on collecting circumstantial evidence related to the scheme.

Meeting this legal burden is challenging. Wire fraud cases can collapse if communication records are unavailable or the electronic trail is inconclusive. An experienced attorney can evaluate the evidence and build the strongest case possible against fraudsters.

Penalties of a Wire Fraud Conviction

The penalties for a wire fraud conviction can be severe:

Prison Time

• Up to 20 years in federal prison. Sentences over 5 years often result from large fraud schemes.

Fines

• Up to $250,000 for individuals
• Up to $500,000 for organizations

Fines are much larger than for similar non-interstate fraud. They increase with the scope of losses.

Probation

• Up to 5 years probation restricting activities

Restitution

• Full restitution to victims for losses caused

Restitution has caused fraudsters to forfeit homes, bank accounts, businesses and anything of value gained illegally.

Forfeiture

• Forfeit property involved with the fraud

Homes, vehicles and bank accounts tied to schemes are often seized.

Other Consequences

• Reputational harm making employment difficult
• Deportation for non-citizens
• Getting sued by victims

Wire fraud convictions can destroy careers, livelihoods and reputations. Our firm understands the high stakes and defends clients vigorously.

The extent of penalties depends on the details of each case. An experienced wire fraud attorney can negotiate the best outcome possible if charges are filed.

Don’t hesitate to contact us for help.

How Can an Attorney Help Defend Against Charges?

Facing wire fraud allegations can be scary. These tips explain how an attorney can help build your defense:

Evaluate the evidence – Your lawyer will thoroughly examine the prosecution’s documents, communications records, witness statements, forensic findings and other evidence to identify holes and weaknesses.

Challenge the electronic evidence – Digital evidence like emails can be fabricated or manipulated. Your attorney will obtain experts to analyze electronic records and challenge evidence that may be unreliable.

Negotiate with prosecutors – Based on their case assessment, your lawyer can advocate for reduced or dismissed charges if evidence seems weak. Over 95% of federal cases end in plea deals.

File motions to suppress evidence – If evidence was obtained questionably or your rights were violated during investigation, your lawyer can request the judge throw out evidence. This could cripple the prosecution’s case.

Interview witnesses for your defense – Your lawyer will talk to witnesses to understand different perspectives on what happened. Credible witnesses help contradict prosecution theories.

Present counter evidence in your defense – In addition to cross-examining the prosecution’s witnesses, your attorney presents witnesses and documentation supporting your innocence.

Seek to exclude prejudicial evidence – Evidence unrelated to wire fraud charges intended to just make you look bad will be excluded by your lawyer so the jury stays objective.

Argue there was “no intent” to defraud – Since intent must be proven beyond reasonable doubt, your lawyer can argue there was no intention of wrongdoing based on evidence found.

Highlight sentencing factors in your favor – If found guilty, your attorney ensures the judge considers mitigating factors like no criminal history, family obligations, health issues, etc. when sentencing.

Relying on an unbiased, nuanced legal strategy is key to overcoming allegations. Our firm has successfully defended business professionals, investors, medical practitioners, and everyday individuals against all types of wire fraud charges.