Wire fraud is a federal crime that involves using electronic communication to deceive others for personal gain. While many people associate wire fraud with large-scale financial scams, there are several lesser-known activities that can also fall under this category.
You should understand some of the most common actions that could constitute wire fraud.
1. False information on loan applications
Submitting false information on a loan application, such as overstating your income or assets, may be wire fraud if you submit the application electronically. This applies to various types of loans, including mortgages, car loans and personal loans.
2. Participating in a pyramid scheme
Pyramid schemes, which rely on tiers of participants and downstream revenues, frequently promise participants easy money for recruiting others. Participating in these schemes and using electronic communication to do so can constitute wire fraud since the primary goal is deceiving people for financial gain.
3. Selling counterfeit goods online
Selling counterfeit goods online, such as fake designer clothing or electronics, qualifies as wire fraud if you use electronic communication to deceive buyers about the authenticity of the products. This includes listing counterfeit items on e-commerce websites as legitimate or using email to communicate with potential buyers.
Wire fraud encompasses a wide range of activities that involve using electronic communication to deceive others for personal gain. By understanding the lesser-known activities that can constitute wire fraud, you can better protect yourself and others from falling victim to these crimes. The more you learn, the easier it is to fight the claims and protect your freedom.