Wire Fraud Examples: The Types of Conduct That Lead to Federal Charges

Wire fraud covers a much wider range of conduct than most people expect, from Ponzi schemes and healthcare billing fraud to romance scams and stolen iPhone resale operations.

Any scheme that uses electronic communication to deceive someone for money or property can trigger federal wire fraud charges under 18 U.S.C. § 1343, carrying penalties of up to 20 years in federal prison per count.

The FBI’s Internet Crime Complaint Center received over 859,000 complaints in 2024 alone, with reported losses exceeding $16.6 billion.

Those numbers explain why wire fraud has become one of the most commonly charged federal offenses in the country.

But being investigated or charged does not mean you will be convicted.

This article walks through the most common types of wire fraud, with real examples showing what kind of conduct actually leads to federal prosecution.

What Types of Conduct Lead to Federal Wire Fraud Charges?

Almost any scheme involving deception and electronic communication can be charged as wire fraud, which is why federal prosecutors treat 18 U.S.C. § 1343 as one of the most flexible tools in their arsenal.

The statute does not list specific types of fraud.

Instead, it criminalizes any “scheme or artifice to defraud” that uses interstate wire communications, which includes phone calls, emails, text messages, wire transfers, internet transactions, and even fax transmissions.

According to data from the Transactional Records Access Clearinghouse at Syracuse University, TRAC projected in July 2023 that federal prosecutions with wire fraud as the lead charge would reach 1,304 that fiscal year, with 1,101 convictions in those cases.

If those projections held, those would be the highest totals in TRAC’s records.

The categories below represent the most common types of conduct that lead to federal wire fraud charges, but this list is far from complete.

If a scheme involves deception and a phone, email, or internet connection, wire fraud is almost certainly on the table.

How Does Investment Fraud Become a Wire Fraud Case?

Investment fraud can support wire fraud charges when a promoter uses electronic communication as part of a scheme to obtain money through material deception, whether that is an email promising guaranteed returns, a website advertising a fake fund, or a wire transfer moving investor money into personal accounts.

Ponzi schemes are the most well-known version of this.

A promoter collects money from new investors and uses it to pay returns to earlier investors, creating the appearance of a profitable venture while the returns are not generated by legitimate investment gains.

Bernie Madoff’s scheme is the most famous example, but federal prosecutors charge far smaller Ponzi operations under the wire fraud statute every year.

Cryptocurrency investment fraud has become a rapidly growing category.

The FBI reported that investment scams, particularly those involving cryptocurrency, accounted for $6.5 billion in losses in 2024, making it the costliest category of internet crime that year.

A typical crypto wire fraud case involves a promoter creating a token or exchange platform, advertising it through social media or email, collecting funds through electronic transfers, and then disappearing with the money.

Sam Bankman-Fried’s prosecution for the collapse of FTX is a high-profile example of how cryptocurrency operations can lead to wire fraud convictions.

Pump-and-dump stock schemes also fall under this category.

A group buys shares of a thinly traded stock, promotes it through false or misleading emails, social media posts, or online forums to artificially drive up the price, and then sells their shares at the inflated price.

Every electronic message used to promote the stock is a potential separate count of wire fraud.

When Does Healthcare Billing Cross Into Wire Fraud?

Healthcare billing can lead to wire fraud charges when a provider knowingly submits false or inflated claims to Medicare, Medicaid, or private insurers through electronic billing systems, which nearly all providers use today.

The most common scenario involves billing for services that were never provided.

A clinic submits electronic claims to Medicare for patient visits that never happened, diagnostic tests that were never performed, or medical equipment that was never delivered.

Because these claims travel through interstate electronic networks, each false submission may support a separate count of wire fraud.

Upcoding is another frequent basis for wire fraud charges in healthcare.

A provider performs a basic office visit but bills it as a more complex and expensive procedure.

Over time, the difference between the service provided and the service billed adds up to significant dollar amounts, and each qualifying electronically submitted claim may support a separate wire fraud count.

Kickback schemes also trigger wire fraud charges.

A doctor receives payments from a lab in exchange for referring patients to that lab, and the referrals generate electronic insurance claims that would not have existed without the illegal kickback arrangement.

The Anti-Kickback Statute prohibits knowing and willful remuneration to induce referrals for services payable by federal healthcare programs, and the false electronic billing that follows can support wire fraud charges when the remaining elements are established.

Pharmacy fraud follows a similar pattern.

A pharmacy bills insurance companies for brand-name medications but dispenses cheaper generics, or bills for prescriptions that were never filled.

Each qualifying false electronic transmission may support a separate wire fraud charge.

How Did PPP and Government Relief Programs Fuel Wire Fraud Prosecutions?

The Paycheck Protection Program and other COVID-19 relief programs generated an enormous wave of federal wire fraud prosecutions because applicants submitted loan requests electronically using false information, which can establish the elements of a wire fraud charge.

A typical PPP wire fraud case involves a business owner or individual submitting an online loan application that overstates the number of employees, inflates payroll expenses, or invents a business that does not actually exist.

The application travels through interstate electronic networks to reach the lender, and the loan funds are disbursed through electronic wire transfers.

The Department of Justice has made pandemic fraud enforcement a major priority.

In September 2026, the DOJ announced a nationwide COVID-loan fraud enforcement operation involving more than 160 defendants and approximately $245 million in intended losses, with nearly 80 newly charged defendants.

These cases continue to be filed years after the programs ended because federal investigators are still working through the volume of fraudulent applications.

Unemployment insurance fraud followed the same pattern during the pandemic.

Individuals filed electronic claims for unemployment benefits using stolen identities or false employment histories.

Because the claims were submitted online and benefits were distributed electronically, each qualifying fraudulent filing could support a wire fraud charge.

Disaster relief fraud extends beyond the pandemic.

Any time someone submits a false electronic application for FEMA assistance, SBA disaster loans, or other government relief programs, wire fraud charges can follow.

The wire fraud statute carries enhanced penalties of up to 30 years for fraud connected to a presidentially declared major disaster or emergency under the Stafford Act, compared to the standard 20-year maximum.

What Does Wire Fraud Look Like in Real Estate Transactions?

Real estate wire fraud typically involves either falsifying loan documents submitted electronically or diverting closing funds through fraudulent wire instructions, and both scenarios have become increasingly common as real estate transactions have moved online.

Mortgage fraud is the most traditional form.

A borrower submits a loan application electronically that contains false income documentation, fabricated employment history, or inflated property appraisals.

Because the application travels through interstate electronic networks between the borrower, lender, and various third parties, the false statements create the basis for wire fraud charges.

Federal prosecutors divide mortgage fraud into two categories: fraud for housing, where a borrower lies to qualify for a loan they intend to repay, and fraud for profit, where the goal is to extract money from lenders through inflated appraisals, straw buyers, or property flipping schemes.

Both are prosecuted as wire fraud, but fraud-for-profit schemes tend to involve larger dollar amounts, which can result in higher Guidelines calculations.

Closing wire diversion scams are an increasingly common form of real estate wire fraud.

A scammer compromises the email account of a real estate agent, title company, or closing attorney.

They then send the buyer fraudulent wire instructions that redirect the closing funds to an account controlled by the scammer.

The buyer believes they are wiring their down payment or closing costs to the title company, but the money goes to the criminal instead.

These cases are prosecuted aggressively because the losses are large, often hundreds of thousands of dollars in a single transaction, and the electronic communications make the wire fraud elements straightforward to prove.

How Are Business Email Compromise Schemes Charged as Wire Fraud?

Business email compromise, commonly known as BEC, is one of the most financially damaging forms of wire fraud, and it works by exploiting trust within organizations and between parties in financial transactions.

In a typical BEC scheme, a scammer gains access to or impersonates a company executive’s email account.

They send an email to someone in the accounting department, directing them to wire funds to a specific account for what appears to be a legitimate business purpose.

The employee follows the instruction, believing the request came from the CEO or CFO, and the money goes to an account controlled by the scammer.

Vendor impersonation is a variation of this scheme.

A scammer creates an email address that closely resembles a company’s regular vendor and sends an invoice with updated payment instructions.

The company pays the invoice electronically, but the money goes to the scammer instead of the actual vendor.

These schemes are charged as wire fraud because every element of the statute is present: a scheme to defraud, intent to obtain money through false representations, and the use of interstate electronic communications to carry out the scheme.

Payroll diversion scams are another form of BEC that leads to wire fraud charges.

An employee in the human resources department receives an email that appears to come from another employee, requesting a change in direct deposit information.

The HR employee updates the banking information, and the next paycheck is deposited into an account controlled by the scammer.

Though each individual paycheck may be a relatively small amount, the accumulated losses across multiple employees and pay periods can be substantial.

Can Romance Scams Result in Federal Wire Fraud Charges?

Romance scams are prosecuted as federal wire fraud when a person creates a fake identity online, builds a romantic relationship with a victim, and then uses that relationship to obtain money through electronic transfers.

The scheme typically begins on a dating app or social media platform.

The scammer builds a relationship over weeks or months, often using stolen photographs and fabricated personal details.

Once trust is established, the scammer invents a crisis, such as a medical emergency, a business problem, or a travel complication, and asks the victim to send money through a wire transfer, payment app, or cryptocurrency transaction.

These cases satisfy the wire fraud elements because the fake identity and fabricated crisis are the scheme to defraud, the electronic communications are the interstate wire component, and the money obtained is the thing of value.

Romance fraud losses are significant.

The FBI’s IC3 consistently ranks romance and confidence fraud among the highest-loss categories, with victims often sending tens or even hundreds of thousands of dollars before realizing the relationship is not real.

Older adults are disproportionately targeted, and the FBI reported nearly $4.9 billion in total losses for victims over age 60 across all internet crime categories in 2024.

Some romance scam operations involve organized networks that recruit “money mules” to move the stolen funds through multiple accounts.

The mules themselves can face wire fraud charges even if they did not personally communicate with the victims, if prosecutors can show they knowingly participated in or assisted the fraudulent scheme, and separate money laundering charges may also apply.

How Do Identity Theft and Cyber Schemes Fit Under the Wire Fraud Statute?

Identity theft and cyber fraud schemes are charged as wire fraud when stolen personal information is used in connection with electronic communications to obtain money, credit, or other things of value.

Phishing is the most widespread example.

A scammer sends emails or text messages designed to look like they come from a bank, government agency, or trusted company.

The message directs the recipient to a fake website where they enter their login credentials, Social Security number, or financial account information.

The scammer then uses that stolen information to access accounts, make purchases, or open new lines of credit.

Each phishing email sent through interstate electronic channels can be charged as a separate count of wire fraud.

Data breaches that involve deception also trigger wire fraud charges.

If a hacker uses social engineering, which means tricking an employee into revealing credentials or clicking a malicious link, to gain access to a company’s computer systems and then steals customer data, the deception combined with electronic communications can support wire fraud charges when prosecutors establish a qualifying scheme to obtain money or property.

Account takeover schemes are another common form.

A criminal obtains someone’s banking credentials through phishing, malware, or the dark web, and then uses those credentials to initiate electronic transfers out of the victim’s account.

The unauthorized access and the electronic transfer together form the basis for wire fraud charges.

Synthetic identity fraud is a more complex variation.

A criminal combines real and fabricated personal information to create a new identity, uses that identity to open bank accounts or credit cards online, and then runs up charges or takes cash advances with no intention of repaying.

Because the accounts are opened and the transactions are conducted electronically, the entire scheme falls under wire fraud.

When Is Insurance Fraud Charged as Federal Wire Fraud?

Insurance fraud becomes a federal wire fraud case when false claims are submitted electronically to insurance companies that operate across state lines, which covers virtually every major insurer in the country.

Staged accident schemes are a common example.

A group of participants deliberately causes or fakes a car accident, then files insurance claims for injuries that were exaggerated or never occurred.

The claims are submitted electronically, the insurance company processes them through interstate systems, and payments are issued through electronic transfers.

Every fraudulent claim in the chain is a potential wire fraud count.

Inflated damage claims follow a similar pattern.

A policyholder suffers a legitimate loss, such as a house fire or a car accident, but then inflates the value of the damage, adds items that were not actually destroyed, or submits fabricated repair invoices.

When these inflated claims are submitted electronically, they create the basis for wire fraud charges even though an actual loss did occur.

Arson-for-profit schemes represent one of the more serious forms of insurance wire fraud.

A property owner deliberately sets fire to their own building or hires someone to do it, then files an insurance claim for the loss.

The electronic submission of the claim, combined with the underlying scheme to defraud the insurer, satisfies the wire fraud elements.

These cases often carry additional charges for arson and mail fraud.

Workers’ compensation fraud also falls under this category when an employee fakes or exaggerates a workplace injury and submits claims electronically for medical treatment, lost wages, or disability benefits that they are not entitled to receive.

How Do Tax Fraud Schemes Lead to Wire Fraud Charges?

Tax fraud can be charged as wire fraud when someone uses electronic communications as part of a scheme involving false tax returns, fraudulent refund claims, or concealment of income, though DOJ policy requires Tax Division approval for tax-related wire fraud charges.

False return schemes are the most straightforward version.

A tax preparer or individual files electronically prepared tax returns that claim fabricated deductions, fake business losses, or inflated credits like the Earned Income Tax Credit.

Because most individual income tax returns are now filed electronically, each false electronic filing involves an interstate wire communication.

Refund fraud operations can be large-scale.

A criminal obtains stolen Social Security numbers and personal information, then files electronic tax returns in those people’s names, claiming refunds that are deposited into accounts controlled by the criminal.

These operations sometimes process hundreds or thousands of fraudulent returns during a single tax season.

Each qualifying false electronic filing may support a separate wire fraud count, and the stolen identity component can lead to aggravated identity theft charges under 18 U.S.C. § 1028A, which carry a mandatory two-year consecutive sentence upon conviction.

Offshore concealment schemes may support wire fraud charges when a taxpayer uses electronic transfers to move money to foreign accounts as part of a broader scheme to defraud and then files tax returns that fail to report the income earned on those funds.

The electronic transfers and the false filings both serve as the wire communication element of the charge.

Tax fraud cases are sometimes prosecuted as wire fraud rather than, or in addition to, tax evasion under 26 U.S.C. § 7201. Wire fraud carries a maximum penalty of 20 years per count, compared to five years for tax evasion, which can factor into charging decisions.

What Is the Most Surprising Conduct You Have Seen Charged as Wire Fraud?

Wire fraud charges can arise from conduct that most people would never associate with a federal indictment, which is exactly what makes the statute so powerful and so dangerous for defendants who do not see it coming.

Dallas criminal defense attorney Michael Lowe has seen this firsthand.

When asked about the most surprising wire fraud case he has handled, Lowe described a prosecution in the Eastern District of Texas involving stolen iPhones:

“The most surprising case I’ve handled was a wire fraud prosecution in the Eastern District of Texas involving stolen iPhones. My clients and their co-defendants were buying stolen phones and either trading them back to Apple for credit or exporting them to the UAE, China and elsewhere, because those phones were blacklisted here in the States. The phones were stolen in a variety of ways. Some came from robberies, but most were obtained through fraud itself, buyers using fake identification, and in some cases store employees helping people put a small deposit down and walk out with a phone on a contract they knew was not legitimate.”

“What surprised me, and what really surprised the defendants, was the scale. It ended up with close to a hundred and forty defendants, which is an extremely large conspiracy case for that district, and many of them had never even met each other. Before that indictment I’m not aware of any case like it anywhere in the country.”

“On the surface it looked like a legitimate business. But the phones were being bought at such a heavily discounted price that it was apparent to the buyers and the middlemen that they were dealing in stolen goods. And because loss is measured by the retail price of the phone, the numbers add up fast.”

“I represented two defendants in that case, a store employee at the bottom of the chain and a higher level middleman broker further up. What shocked the people at the lower levels was that helping sell a few iPhones could land them in federal court on a federal indictment. What surprised the middleman was the math. He wasn’t making a large profit on any single phone, but because loss is measured by the retail price, the dollar amount adds up fast, and you can end up responsible for millions of dollars worth of phones on a very thin margin.”

This case illustrates two critical points about wire fraud.

First, the statute is broad enough to reach conduct that most people would think of as a state-level theft crime, not a federal fraud offense.

Second, the way federal prosecutors calculate loss can dramatically increase a defendant’s sentencing exposure, because sentencing loss can substantially exceed a defendant’s profit, and in stolen-goods cases like this one, courts may use retail value as the measure.

Why Is the Wire Fraud Statute So Broad?

The wire fraud statute is intentionally broad because Congress wrote 18 U.S.C. § 1343 to cover any fraudulent scheme that uses electronic communications, without limiting it to specific types of fraud.

The statute requires prosecutors to prove three elements: that the defendant devised or participated in a scheme to defraud involving material deception, that the defendant acted with intent to defraud, and that interstate or foreign wire communications were used in furtherance of the scheme.

According to the Department of Justice’s Criminal Resource Manual, these elements “directly parallel those of the mail fraud statute,” with the key difference being the use of electronic communications rather than the postal service.

What makes the statute so broad is the definition of “wire communications.”

It covers telephone calls, emails, text messages, internet transactions, electronic funds transfers, fax transmissions, and any other form of electronic communication that crosses state lines or international borders.

In today’s world, almost every financial transaction involves some form of electronic communication, which means almost any fraud scheme can be charged as wire fraud.

The wire communication itself does not need to contain any false statement.

A completely truthful email can serve as the basis for a wire fraud charge if it was sent in furtherance of a broader scheme to defraud.

For example, an email confirming a meeting time can become evidence of wire fraud if the meeting was part of a larger fraudulent plan.

This breadth is why federal prosecutors often describe wire fraud as a “catch-all” statute.

When the specific conduct does not fit neatly into another federal criminal statute, wire fraud often fills the gap as long as electronic communications were involved.

Can You Be Charged with Wire Fraud Even If No Money Was Lost?

Yes, a person can be charged with and convicted of wire fraud even if no victim actually lost any money, because the statute requires only a scheme to defraud and a wire communication used in furtherance of it, not the success of that scheme.

Federal prosecutors do not need to prove that the fraud worked or that anyone was actually deceived.

They only need to prove that the defendant devised a scheme to defraud and used interstate wire communications in furtherance of that scheme.

This means that a failed fraud attempt, where the intended victim caught on before sending any money, can still result in wire fraud charges.

It also means that a scheme that was intercepted by law enforcement before any financial loss occurred is still prosecutable.

The intent to defraud is what matters, not the outcome.

This differs from some state fraud statutes that may require proof of actual financial loss as an element of the offense.

Under federal law, the completed wire communication in furtherance of the scheme is the criminal act, regardless of whether the scheme ultimately succeeded.

However, the amount of actual or intended loss does significantly affect sentencing.

The federal Sentencing Guidelines under USSG § 2B1.1 use loss amount as the primary driver of the offense level calculation.

A scheme with a higher intended loss can increase the advisory Guidelines range even if no money was actually taken.

This is one of the reasons why early legal representation is critical in wire fraud cases, because challenging the government’s loss calculation at sentencing can have a major impact on the potential prison term.

What Should You Do If You Are Under Investigation for Wire Fraud?

If you learn that you are under investigation for wire fraud, the single most important thing you can do is contact a criminal defense attorney before speaking with federal agents, because anything you say during an investigation can and will be used against you in court.

Federal wire fraud investigations are typically conducted by the FBI, sometimes in coordination with the IRS, the Secret Service, the Postal Inspection Service, or other federal agencies depending on the type of fraud involved.

These investigations can last months or even years before charges are filed, and during that time, investigators are building their case by reviewing financial records, email communications, phone records, and witness statements.

Many people make the mistake of thinking they can talk their way out of an investigation or that cooperating without a lawyer will make the problem go away.

In reality, speaking to federal agents without legal representation can make things significantly worse, because agents are trained to get statements that can be used to prove the elements of the offense.

An attorney can assess the strength of the government’s case, advise on whether cooperation is in your best interest, and begin building a defense strategy before charges are even filed.

Pre-indictment intervention is one of the most valuable things a defense attorney can provide in a wire fraud case.

In some situations, an attorney can present evidence or arguments to the prosecutor that result in the case being declined for prosecution or reduced to lesser charges before an indictment is ever handed down.

Once an indictment is filed, the options become more limited, which is why acting early is so important.

Need Help With Federal Wire Fraud Charges in Dallas?

Wire fraud is one of the most broadly applied federal charges in the country, and the examples in this article represent only a fraction of the conduct that federal prosecutors pursue under 18 U.S.C. § 1343.

Whether the allegation involves investment fraud, healthcare billing, a PPP loan application, a real estate closing, or any other scheme that used electronic communications, the stakes are serious, with penalties of up to 20 years in federal prison per count.

As a wire fraud lawyer in Dallas, Michael Lowe has defended clients facing wire fraud charges across a wide range of industries and circumstances.

If you or someone you know is under investigation or has been charged with wire fraud, early legal representation can make a critical difference in the outcome of the case.

Contact the Law Office of Michael Lowe today by calling 214-526-1900 to schedule a free consultation.

Frequently Asked Questions

What Is the Penalty for Federal Wire Fraud?

The maximum penalty for wire fraud under 18 U.S.C. § 1343 is 20 years in federal prison and a $250,000 fine per count. When the fraud affects a financial institution or a presidentially declared major disaster, the maximum increases to 30 years and a $1,000,000 fine. Actual sentences depend on loss amount and other factors under the federal Sentencing Guidelines.

What Is the Difference Between Wire Fraud and Mail Fraud?

The main difference is the communication method. Wire fraud involves electronic communications like phone calls, emails, and internet transactions. Mail fraud involves the U.S. Postal Service or private carriers like FedEx and UPS. Both statutes have nearly identical elements and carry the same maximum penalties. Prosecutors choose the charge based on which communication method the scheme used.

Can a Single Email Be Enough for a Wire Fraud Charge?

Yes, a single email sent in furtherance of a scheme to defraud can be the basis for a wire fraud charge. The email itself does not need to contain false statements. If it was sent as part of a broader fraudulent scheme and crossed state lines electronically, it satisfies the wire communication element. Each separate electronic communication can be charged as its own count.

What Are the Most Common Defenses to Wire Fraud?

Common defenses include lack of intent to defraud, good faith belief in the legitimacy of the conduct, challenges to the government’s loss calculation, and arguments that the defendant did not knowingly participate in the scheme. A defense attorney may also challenge the evidence connecting the defendant to the wire communications or argue that the communications did not cross state lines.

How Long Do Federal Wire Fraud Investigations Last?

Federal wire fraud investigations can last several months to several years before charges are filed. Duration depends on complexity, the number of defendants, and the volume of financial records to review. The general statute of limitations is five years but extends to ten years when the fraud affects a financial institution or involves PPP and COVID-EIDL fraud.

Can You Be Charged with Wire Fraud for Something You Did Not Know Was Illegal?

Wire fraud requires proof of intent to defraud, meaning the defendant knowingly participated in a scheme to deceive someone for money or property. If a person genuinely did not know their conduct was fraudulent and acted in good faith, that lack of intent is a defense. Willful blindness, meaning deliberate avoidance of confirming suspicious facts, can establish the required knowledge.