Seemingly innocent practices that can lead to wire fraud charges

When most people think about wire fraud, they imagine that it constitutes elaborate scams, organized crime or large-scale schemes. While this can be true, people should know that even seemingly innocent practices—that may not even seem criminal at the time—can potentially land them in hot water.

Any activity that leverages electrical communication to deceive people for financial gain can be categorized as wire fraud. This is a federal crime that can result in heavy penalties for perpetrators. Understanding what constitutes wire fraud and recognizing how common practices can inadvertently lead to these charges is crucial for anyone who uses electronic communications in their business or personal affairs.

Exaggerating or misrepresenting facts in emails or applications

For most people, it might not seem like a big deal to embellish details on:

• Loan applications
• Insurance claims
• Investment opportunities

For example, exaggerating one’s income or assets in order to qualify for a loan or misrepresenting the nature of a business to attract investors may seem harmless at first, especially if the intention is to pay the loan back or use the investments appropriately. However, the problem begins as soon as these false representations are made through:

• Email
• A phone call
• An online form

As per the definition of wire fraud, the use of electrical communication could trigger a criminal charge if authorities believe the other party was being intentionally deceived for financial gain.

Sending funds for a fraudulent transaction

Sometimes, individuals can get caught up in a wire fraud scheme without knowing it. People should be careful about strangers asking them to process payments to avoid unknowingly participating in such fraudulent transactions.

Transferring funds on someone else’s behalf via electronic means is one way to fall victim to wire fraud scams. Regardless of where the funds came from, anyone can be implicated in a federal wire fraud case if they fall prey to such scams. Even when the victim of the scam is acting in good faith, the law does not always distinguish between innocent mistakes and intentional fraud when electronic communications are involved.

People who unknowingly get caught up in wire fraud cases due to a lack of knowledge may wonder if their lack of knowledge is defense enough. With appropriate legal guidance, they can navigate this challenging situation as successfully as possible, and remain informed about avoiding legal trouble in the future.