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3 types of cyber fraud that can lead to federal charges

On Behalf of | Nov 13, 2023 | Federal Crimes |

For anyone caught up in the web of cyber fraud, the realization of potential federal charges can be an alarming and overwhelming experience.

The digital realm is rife with deceptive practices, and it is important to be aware of the consequences that may loom ahead if one falls under suspicion of engaging in unlawful online activities.

1. Phishing schemes

Phishing schemes, which often involve the impersonation of trustworthy entities, are a common form of cyber fraud. If you find yourself implicated in such a scheme, the potential federal charges may include wire fraud, identity theft and unauthorized access to computer systems.

2. Online scams and fraudulent auctions

Online scams take various forms, including fake auctions and advance-fee fraud. They involve people making payments for non-existent goods or services with a promise of hefty returns on investments. Involvement in such fraudulent activities may lead to federal charges related to wire fraud and conspiracy to commit fraud.

3. Investment and securities fraud

Engaging in investment and securities fraud often means manipulating financial markets or deceiving investors with false information. Securities fraud encompasses activities like insider trading, pump-and-dump schemes and the dissemination of misleading information. In 2022, investment fraud resulted in a $3.3 billion loss. Individuals caught up in these activities may face federal charges under securities laws, potentially subjecting them to severe penalties.

In conclusion, being potentially ensnared in the legal complexities of cyber fraud can be a deeply distressing experience. It is important to understand the gravity of the situation and the possible federal charges and penalties associated with these unlawful online practices.