Wire fraud is a sort of fraud that uses telecommunications or the internet to commit a crime. These can take many different forms, including phone calls, faxes, emails, texts, and social media messages. Wire fraud is a crime that can result in jail time and/or penalties.
This sort of crime can employ any type of electronic medium, such as a phone or fax machine, email or social media, or SMS and text messaging.
The Nigerian prince scam is a common example of wire fraud. The fraudster writes an email claiming to be a Nigerian prince who is in some manner down on his luck, typically banished, and can’t access the money in his Nigerian bank account. He states that he needs the target to hold his millions for him in exchange for a large quantity of money. The objective of the con is to get the target’s financial information, which will be used by the scammer to gain access to the target’s funds.
Wire fraud, also known as “wire swindling,” is a type of scheme in which the perpetrator convinces the victim to transfer money or items of value using wire communications.
How it works: The scheme begins with emails from an individual that needs funds to continue their business and includes a call-to-action for a direct deposit. Once the bank account details have been changed and confirmation is received, wire transfers are initiated expeditiously from victims’ accounts without their knowledge. Victims eventually realize what has happened when they no longer have access to their own funds due in part to withdrawal limits imposed on them.