Learn about different types of fraud charges, including wire and securities fraud, and what they mean for individuals and businesses.
Fraud charges cover a wide range of offenses, from relatively small individual schemes to large, complex financial crimes. While each type of fraud has its own legal definition and penalties, they all share a common core: the use of deception for financial or personal gain. Understanding the different types of fraud charges can help you recognize the seriousness of an accusation and why experienced legal guidance is so important.
What Are Fraud Charges?
At their core, fraud charges generally allege that someone:
- Made a false statement or misrepresentation,
- Knew it was false,
- Intended for someone to rely on it, and
- Caused (or risked causing) financial loss or gain because of that deception.
Fraud can be charged at the state or federal level, depending on the circumstances. Many fraud cases involve financial institutions, government programs, or interstate communications, which often brings federal agencies and prosecutors into the picture.
Below are some of the most common types of fraud charges, from everyday situations to complex white-collar cases.
Wire Fraud
Wire fraud is one of the broadest and most frequently used federal fraud charges. It involves using any form of electronic communication to carry out a scheme to defraud. That can include:
- Emails and text messages
- Phone calls or faxes
- Online banking or e-commerce platforms
- Social media messages or ads
Because electronic communications routinely cross state lines, wire fraud often becomes a federal offense, investigated by agencies such as the FBI. Penalties can be severe, especially if the alleged scheme involves multiple victims, large sums of money, or vulnerable individuals.
Mail Fraud
Mail fraud is closely related to wire fraud, but instead of electronic communications, it focuses on the use of the postal service or commercial carriers (like UPS or FedEx) as part of a fraudulent scheme. Examples might include:
- Mailing false invoices or bogus investment materials
- Sending forged checks or documents
- Using the mail to collect payments based on false promises
Because the postal system is federally regulated, mail fraud is also typically prosecuted in federal court. In many cases, prosecutors will charge both mail fraud and wire fraud, increasing the potential exposure for the accused.
Bank Fraud
Bank fraud involves schemes targeting financial institutions or their customers. Common examples include:
- Creating or using fake checks
- Opening accounts with stolen identities
- Manipulating loan applications or mortgage documents
- Unauthorized transfers or withdrawals
Bank fraud charges can be brought when someone is accused of defrauding a bank, credit union, or other financial institution, or when the scheme puts those institutions at risk of loss. Since banks are heavily regulated and often insured by the federal government, these cases can lead to significant penalties and federal oversight.
Credit Card and Debit Card Fraud
Credit card fraud (and related debit card fraud) is another common category of fraud charges. It can include:
- Using someone else’s card without permission
- Stealing card numbers for online purchases
- Creating or using counterfeit cards
- “Skimming” card data from ATMs or card readers
Because modern payments are almost always processed electronically, credit card fraud charges frequently overlap with identity theft, wire fraud, or computer crime statutes. Even a seemingly “minor” incident can snowball into multiple felony counts.
Insurance Fraud
Insurance fraud occurs when someone lies to an insurance company to obtain benefits or payouts they are not legally entitled to. This might involve:
- Staging car accidents
- Exaggerating injuries in a claim
- Falsifying property damage
- Billing for services that were never provided (in the case of medical or billing fraud)
Insurance companies often have special investigative units, and suspicious claims can quickly turn into criminal investigations. In some cases, multiple defendants—such as claimants, providers, or insiders—may be charged together.
Securities Fraud
At the more complex end of fraud charges is securities fraud, which involves deceptive practices in the stock market or investment world. This can include:
- Insider trading (trading on non-public information)
- Misrepresenting the health or prospects of a company
- Running “pump-and-dump” schemes to artificially inflate stock prices
- Misleading investors about risks, returns, or how funds will be used
Securities fraud often attracts attention from agencies like the Securities and Exchange Commission (SEC) and can result in both civil and criminal actions. For professionals in finance, accounting, or corporate leadership, a securities fraud investigation can be career-ending, even before any conviction.
Health Care and Medicare/Medicaid Fraud
Another area where fraud charges are increasingly common is health care fraud, especially involving government programs such as Medicare and Medicaid. These cases may allege:
- Billing for services not provided
- Upcoding (billing for a more expensive service than what was actually performed)
- Paying or receiving kickbacks for patient referrals
- Using patient information for unauthorized claims
Because these programs involve taxpayer funds, health care fraud is taken particularly seriously and can lead to both criminal penalties and professional consequences for medical providers.
Why Fraud Charges Are So Serious
Fraud charges can carry hefty fines, restitution orders, and lengthy prison sentences, especially when:
- The alleged loss amount is high
- There are multiple victims
- The defendant is accused of abusing a position of trust
- The case involves vulnerable victims, such as the elderly
Beyond the legal penalties, being accused of fraud can damage reputations, careers, and personal relationships. Professionals such as accountants, executives, financial advisors, and medical providers may face license suspensions, terminations, or permanent career setbacks.
What to Do If You’re Facing Fraud Charges
Anyone under investigation or formally charged with fraud should take the situation extremely seriously. Speaking casually to investigators, employers, or even friends without understanding the implications can unintentionally harm your defense. Preserving documents, avoiding the destruction of records, and understanding your rights are all crucial early steps.
Because fraud cases often involve complex financial records, digital evidence, and multi-agency investigations, working with a criminal defense attorney who understands white-collar and fraud-related offenses can make a meaningful difference in how your case is handled.