What exactly is bank fraud?

On Behalf of | Aug 1, 2023 | Criminal Defense, Federal Crimes

Bank fraud encompasses a wide range of white collar crimes involving the illegal acquisition or manipulation of funds or assets held by a financial institution. Typically, it entails devising and executing deceptive schemes to defraud a bank or its clients for profit.

The effects of bank fraud can be disastrous, leading to huge financial losses for both individuals and institutions. As a result, anyone accused of bank fraud risks faces harsh penalties.

Types of Bank Fraud

Individuals, criminal groups, and even current or former bank employees may be committing bank fraud when they engage in the following criminal activities:

  • Identity theft: This involves using someone else’s personal information, such as their name, Social Security number, or bank account details, without their consent to carry out fraudulent transactions.
  • Forgery: It refers to creating or modifying documents, signatures, or checks to deceive the bank into authorizing transactions or releasing funds.
  • Check fraud: This involves creating counterfeit checks or altering legitimate checks to divert funds or make unauthorized withdrawals.
  • Loan fraud: It includes providing false information or misrepresenting financial circumstances to obtain loans or credit from a bank.
  • Wire fraud: This refers to using electronic communication channels to deceive individuals or organizations into sending money or sensitive information.

If convicted of bank fraud, perpetrators risk harsh punishments such as hefty fines, years of imprisonment, restitution and forfeiture of assets. To investigate and bring incidents of bank fraud to justice, government organizations and law enforcement agencies collaborate with banks.

Individuals accused of bank fraud may find it advantageous to obtain personalized legal counsel. Attempting to “DIY” a defense in this area of the law is unwise due to its complexity and the potential ramifications at stake.