Wire Fraud

Key takeaways
* Wire fraud is a federal crime that uses electronic communications (phone, email, messaging, internet) to carry out schemes to defraud.
* Core elements: a scheme to defraud, intent to defraud, foreseeable and actual use of interstate wire communications.
* Penalties are severe — decades in prison and substantial fines; harsher penalties apply when financial institutions or special circumstances are involved.
* Common scams (e.g., “Nigerian prince”) typically seek money or account information; once funds are wired, recovery is often difficult.
* Report suspicious activity to law enforcement (for example, the FBI’s Internet Crime Complaint Center) and avoid wiring money to strangers.

What is wire fraud?
Wire fraud involves using telecommunications or electronic communications to execute a plan to deceive someone and obtain money or property. It is prosecuted under federal law and covers any scheme where interstate or international wire communications are used to further the fraud.

Legal elements
To establish wire fraud, prosecutors typically must prove:
* A defendant devised or participated in a scheme to defraud someone of money or property.
* The defendant acted with the intent to defraud.
* It was reasonably foreseeable that interstate wire communications would be used.
* Interstate wire communications were actually used in furtherance of the scheme.

Note: A person can be convicted even if they did not personally send the fraudulent messages — proof of intent to defraud or knowing facilitation of fraudulent communications can be sufficient.

Penalties and statute of limitations
* Standard penalties: up to 20 years in federal prison and fines (commonly cited up to $250,000 for individuals).
* Enhanced penalties: up to 30 years and higher fines when the offense affects financial institutions or other special circumstances.
* Statute of limitations: generally five years; can extend to 10 years when a financial institution is a target.

How wire fraud has evolved
Historically, fraudsters relied on telephone calls. Today, the internet lets scammers reach many more potential victims quickly via email, social media, dating sites, and online marketplaces. Simple fake profiles, fake listings, or fabricated stories can create the illusion of legitimacy and lure victims into wiring money or sharing sensitive information.

Common scams and how to avoid them
Examples:
* Advance-fee/“Nigerian prince” scams — a stranger promises a large reward in exchange for upfront fees or banking help. Purpose: obtain account information or money.
* Emergency impersonation scams — fraudsters claim a friend or family member is in urgent trouble and request immediate wire payments.
* Fake listings or investment schemes — sellers or “opportunities” ask for wire transfers and then disappear or deliver counterfeit goods.

How to protect yourself:
* Never wire money to someone you don’t know and cannot verify in person.
* Verify unexpected requests through independent channels (call family members, contact a company via official website/phone number).
* Be skeptical of urgency, secrecy requests, or promises that sound too good to be true.
* Use secure payment methods and be cautious with sharing personal or financial information online.
* Report scams to local law enforcement and to national resources such as the FBI’s Internet Crime Complaint Center (IC3).

If you’re a victim
* Contact the company used to send the funds (bank, wire-transfer service) immediately and request a reversal or trace.
* File reports with your bank, local police, and IC3.
* Preserve records of communications and transactions to assist investigators.

Who investigates wire fraud
Federal agencies commonly involved include:
* Federal Bureau of Investigation (FBI)
* U.S. Secret Service
* Department of Homeland Security
State and local law enforcement may also investigate and cooperate with federal authorities.

Conclusion
Wire fraud is a serious, evolving threat that uses electronic communications to deceive victims and move money quickly. Understanding the legal elements, recognizing common scams, and following cautious practices—especially avoiding wiring money to strangers—are the best defenses. If you suspect fraud, act quickly to notify your financial institution and report the crime to appropriate authorities.