Fraud is a broad category of criminal activity. Those accused of fraud may have lied or misrepresented circumstances for personal gain. Some types of fraud are industry-specific. People may end up facing accusations of health insurance fraud or mortgage fraud because of mistakes they make in their careers. Individuals in a variety of different professions might end up facing more generic fraud charges, such as wire fraud allegations.
The term wire fraud refers to a fraud-related crime that uses telecommunication systems. People accused of using electronic communications, phones, text messages, social media or even fax systems to defraud others may end up facing wire fraud charges. The following are some of the most common examples of wire fraud.
Phishing schemes
Phishing is a form of email fraud that tries to gain access to people’s private personal or financial information. Phishing might look like creating false Amazon receipts or sending people notices that their antivirus software has just renewed for $250. The goal is to get people to respond and confirm certain details about themselves. The party sending those emails can then misuse that information for personal gain by either conducting fraudulent transactions or selling private information to third parties.
Confidence schemes
Some people make a point of getting to know others and befriending them with the intent of defrauding them later. Social media and dating apps have made such schemes far more prevalent. People may have a false sense of intimacy and can build a relationship with a completely fictitious individual based on stolen photographs and a few messages sent back and forth over dating sites. Attempts to get people to send money after gaining their trust may fall into this category of wire fraud. While many people who use their resources in confidence schemes are too embarrassed to speak up, others involve the authorities and push for justice.
Pump-and-dump schemes
Those hoping to make big profits from an investment need others to find the same investment attractive. They may try to drum up enthusiasm for a business or stock online by creating fake accounts and manufacturing hype online. They may then sell their stock or other holdings for a massive profit when people respond to the hype generated online. The people who invest or buy in as a result of a pump-and-dump scheme often lose most or all of what they invested.
Any new business strategy that involves tricking others could eventually lead to criminal charges. Recognizing behavior that might constitute wire fraud can help people avoid mistakes that could lead to their prosecution. Those accused of fraud offenses may need help evaluating the state’s case and developing a reasonable defense strategy given the circumstances that led to their arrest, and there’s no shame in that.