Federal Cybercrimes

Federal Cybercrime Fraud – Table of Contents

• Summary
• Mail, Telegraph and Bank
• Fraud – Definition
• Defenses

Federal Cybercrime Fraud Summary

The term “fraud in federal cybercrimes” often evokes the image of someone in a foreign country hacking into a major government agency. However, in reality, “fraud in federal cybercrimes” covers a wide range of conduct. This is in addition to any state crime that can be committed using the Internet.

Many cases of fraud in federal cybercrimes revolve around information and how that information can be turned into money. Whether the information is sold to a third party or used to further a fraudulent scheme, the ultimate goal of most federal cybercrime frauds is to use stolen or fraudulently obtained personal information to acquire goods or services.

18 U.S.C. § 1341 and 1343 (Mail, Wire, and Bank Fraud)

Federal cybercrime fraud under Section 1343 is a broad law that covers nearly all types of cyber fraud committed via the Internet or telephone. Section 1341 applies to all fraudulent goods or fraudulent communications sent through the U.S. Postal Service and any private carrier such as UPS, FedEx, or any other “commercial carrier.” Below is an edited version of Section 1341 regarding fraud in federal cybercrimes:

“Whoever, having devised or intending to devise any scheme or artifice to defraud, or to obtain money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or provide or procure for illegal use any counterfeit or spurious currency, obligation, security, or article, or anything represented, implied, or presented as such counterfeit or spurious currency, obligation, security, or article, for the purpose of executing said scheme or artifice or attempting to do so, places in any post office or authorized depository for mail matter any material or item to be sent or delivered by the Postal Service, or deposits or causes to be deposited any material or item to be sent or delivered by any private or commercial interstate carrier, or takes or receives from them any material or item, or causes it to be delivered by mail or said carrier to the address indicated therein, or to the place where it is to be delivered by the person to whom it is addressed, shall be fined under this title or imprisoned for not more than 20 years, or both.”

It does not take much to see how quickly fraudulent conduct committed anywhere in the United States could subject you to a penalty of up to 30 years in federal prison, a significant fine, or both under Section 1341.

Section 1343 and Fraudulent Communications

Section 1343 deals with how fraudulent communication is carried out. Below is an excerpt from 18 U.S.C. § 1343:

“Whoever, having devised or intending to devise any scheme or artifice to defraud, or to obtain money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writing, signal, picture, or sound for the purpose of executing said scheme or artifice, shall be fined under this title or imprisoned for not more than 20 years, or both.”

If you think Sections 1341 and 1343 sound somewhat similar, it’s because they are. Both sections cover multiple methods of perpetrating fraud. The bolded portion of Section 1343 mentioned above essentially covers all forms of modern communication, including text messages, phone calls, emails, TV commercials, or even transmitted images. If you use a phone, computer, or the Internet in any way to commit fraud, you have likely violated Section 1343 and could face up to 30 years in prison and/or up to $1 million in fines, depending on the circumstances.

But What Is Fraud?

Fraud in federal cybercrimes is defined as “the falsification or concealment of a material fact or matter, or the scheme to obtain money or property through false or fraudulent pretenses involving a false statement, assertion, half-truth, or intentional concealment of a material fact or matter.”
In short, fraud is lying or hiding an important fact so that another person or entity gives you money or property that you otherwise would not have obtained.

Defenses Against Federal Cybercrime Fraud

Crimes such as fraud in federal cybercrimes require that you knew you were lying or misrepresenting the truth or that you intended for your false statements to cause a person or entity to give you money or property. Legal defenses against federal cybercrime fraud can be complex, so consult with a licensed Criminal Defense Attorney in Los Angeles about your specific case.

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