# Understanding Wire Fraud: Definition, Laws, and Key Examples

![Wire Fraud](https://www.investopedia.com/thmb/_ODtHJ09eXbtTmJwFfIkzk3200M=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/Wirefraud.aspfinal-15b62c2f08a545b58764e6623ecbfe61.jpg)

*— Investopedia / Candra Huff*

## What Is Wire Fraud?

Wire fraud is a serious federal offense involving schemes to defraud through communications via phone, email, or messaging. It carries hefty penalties, including fines and imprisonment, and often exploits potential and unsuspecting victims across borders. Understanding the elements of wire fraud, as set by U.S. law, helps protect individuals and organizations from falling victim to these crimes.

### Key Takeaways

*   Wire fraud involves using telecommunications or the Internet to carry out fraudulent schemes and can lead to significant fines and imprisonment.
*   Key elements of wire fraud include devising a scheme to defraud with intent, foreseeability of interstate wire use, and actual use of such communications.
*   Federal penalties for wire fraud can be severe, with sentences up to 20 years and fines up to $250,000, or higher for crimes against financial institutions.
*   Anybody can be convicted of wire fraud by simply intending to defraud or by knowingly facilitating fraudulent communications.
*   Common scams like the "Nigerian prince" highlight the need for vigilance, as once money is wired, it is often irretrievable.  
    

## How Wire Fraud Works

The U.S. Department of Justice Criminal Resource Manual Section 941.18 U.S.C. 1343 cites these as the key elements of wire fraud:

1.  “That the defendant voluntarily and intentionally devised or participated in a scheme to defraud another out of money
2.  That the defendant did so with the intent to defraud
3.  That it was reasonably foreseeable that interstate wire communications would be used
4.  That interstate wire communications were in fact used”

Wire fraud is a federal crime punishable by up to 20 years in prison and fines of up to $250,000 for individuals and $500,000 for organizations. The [statute of limitations](https://www.investopedia.com/terms/s/statute-of-limitations.asp) for wire fraud is five years, but it extends to 10 years if a financial institution is targeted. If wire fraud is linked to special circumstances, like a state of emergency or targets a financial institution, the penalty can be up to 30 years in prison and a $1 million fine. 

To be convicted of wire fraud, a person doesn't need to defraud someone or send fraudulent messages themselves. Proving the intent to defraud or knowledge of fraudulent messages being sent is sufficient for a conviction.

### Evolution of Wire Fraud: Past and Present

Not long ago, in order to perpetrate a scheme, fraudsters had to rely on the telephone and make hundreds of calls to try to hook a hapless, gullible retiree or lonely heart. The old-fashioned phone call is still useful as a means to contact prey, but today, with the power of the internet to find potential victims, a fraudster’s work can be done online with a few fake postings of pictures, a tale of woe, and a promise of untold riches or everlasting love—and all of this can be written with bad grammar and spelling.

> **Tip**
>
> If you get messages or solicitations to send money to a stranger, delete them right away. You can also report them to the FBI's Internet Crime Complaint Center.

## Common Wire Fraud Scams and How to Avoid Them

A common example of wire fraud is the Nigerian prince scam. In this scam, the scammer sends an email claiming to be a Nigerian prince who is down on his luck in some way, usually exiled, and can’t access the fortune in his Nigerian bank account. He claims to need the target to hold his millions for him and promises to give the target a handsome sum in return. The goal of the scam is to obtain the target’s financial information, which the scammer will use to access the target’s money.

Despite being one of the oldest scams, many people still fall for this or similar schemes. No matter what the circumstances—whether you receive an email from a wealthy traveler who needs your help getting back to the U.S. or your long-lost cousin who claims to be in an emergency situation—never wire money to a stranger. Once you wire money, particularly overseas, reversing or tracing the transaction is nearly impossible. If you’re concerned about your cousin's safety, verify it through other means. They’ll probably be safe at home, and you can alert them that their email’s been hacked.  

> **Fast Fact**
>
> One of these "Nigerian princes" was detained and charged on Dec. 28, 2017. He turned out to be a 67-year-old man from Louisiana. This particular brand of the scheme first popped up in the 1980s and Americans have lost millions of dollars to the scam.

## How Serious Is Wire Fraud?

Wire fraud is a federal crime, and a conviction is very serious. You could spend up to 20 years in federal prison and owe $250,000 if you're found guilty of wire fraud. The penalty is even steeper for crimes against financial institutions: You could be imprisoned for 30 years and owe as much as $1 million in fines.

## Who Investigates Wire Fraud?

The Federal Bureau of Investigation (FBI), U.S. Secret Service, and the U.S. Department of Homeland Security are some of the organizations that investigate claims of wire fraud.

## Can You Get Your Money Back If You're a Victim of a Wire Fraud Scam?

You can try to get your money back, but you might not be successful. Contact the company you used to wire the money (such as Western Union) and ask for a reversal of the fraudulent transaction. If you sent the money through your bank, contact them right away to let them know and ask if they can reverse it.

## The Bottom Line

Wire fraud is a serious federal crime that involves using telecommunications or the Internet to defraud others and carries severe penalties, including significant fines and lengthy prison sentences.

Understanding the elements of wire fraud, such as the intent to defraud and the use of interstate communications, is crucial. Key institutions, like the FBI, actively investigate these crimes. Stay vigilant by recognizing the signs of common scams, such as unsolicited requests for money or personal details, and report any suspicious activities to appropriate authorities like the FBI's Internet Crime Complaint Center.

> **Article Sources**
>
> 1.  U.S. Department of Justice Archives. "[941\. 18 U.S.C. 1343—Elements of Wire Fraud](https://www.justice.gov/archives/jm/criminal-resource-manual-941-18-usc-1343-elements-wire-fraud)."
>     
> 2.  U.S. Department of Justice Archives. "[968\. Defenses—Statue of Limitations](https://www.justice.gov/archives/jm/criminal-resource-manual-968-defenses-statute-limitations)."
>     
> 3.  Congressional Research Service. "[Mail and Wire Fraud: A Brief Overview of Federal Criminal Law](https://www.everycrsreport.com/reports/R41930.html)."
>     
> 4.  U.S. Federal Bureau of Investigation. "[Internet Crime Complaint Center (IC3)](https://www.ic3.gov/Home/ComplaintChoice/default.aspx/)."
>     
> 5.  Slidell Police Department. "[Slidell Police Arrest 'Nigerian Prince" Fraudster](https://www.facebook.com/SlidellPD/posts/1577502798962542)." \[Press release on Facebook page\].
>     
> 6.  New York Times. "[Louisiana Man Charged in ‘Nigerian Prince’ Scheme](https://www.nytimes.com/2017/12/31/us/nigerian-prince-fraud.html)."
>     
> 7.  Secretservice.gov. "[Our Investigative Mission](https://www.secretservice.gov/investigation)."
>     
> 8.  Federal Trade Commission. "[Before You Wire Money](https://consumer.ftc.gov/articles/you-wire-money)."