Wire fraud
Also known as: 18 U.S.C. 1343 · Mail and wire fraud · Fraud by wire
The federal crime of using interstate or foreign wire, radio or television communications — today, email, phone, internet and electronic payments — to execute a scheme to defraud or to obtain money or property by false pretenses.
Legal basis
18 U.S.C. §1343 (fraud by wire, radio, or television)
Wire fraud, 18 U.S.C. §1343, is the workhorse of US federal fraud prosecution. What defines it is a scheme to defraud — or to obtain money or property by false pretenses — plus the use of interstate wires to carry it out. Its twin, mail fraud (§1341), does the same work for the mail.
The penalty is up to 20 years in prison. If the scheme affects a financial institution or involves benefits connected to a presidentially declared disaster or emergency, the maximum rises to 30 years and a $1,000,000 fine.
Because nearly every modern loan application, insurance claim and payment crosses state lines electronically, the statute can reach most fraud against lenders, insurers and rental companies — which is why a well-documented evidence trail, reconstructed from independent sources, matters as much as the suspicion itself.
Frequently asked questions
What is the penalty for wire fraud?
Up to 20 years in federal prison and fines. If the fraud affects a financial institution or involves disaster or emergency benefits, up to 30 years and a fine of up to 1,000,000 dollars.
What makes fraud a federal crime?
Using the mail or interstate wire communications, such as email, phone calls, internet transfers or electronic payments, to carry out the scheme brings it under the federal mail and wire fraud statutes, along with other federal hooks such as bank fraud.