Jun 4, 2025

Fraud Crimes/Bank Fraud

Understanding Bank Fraud

Bank fraud is a serious offense that involves the use of deceptive means to obtain money, assets, or other property owned or held by a financial institution. It is prosecuted under both state and federal laws, and the penalties can be severe.

Types of Bank Fraud

There are many forms of bank fraud, including check fraud, credit card fraud, loan fraud, and wire transfer fraud. Each type involves a unique method of deception, but all are aimed at unlawfully obtaining funds from a bank or its customers.

Legal Consequences of Bank Fraud

What type of crime is bank fraud?

Bank fraud is considered a white-collar crime. It is typically charged as a felony due to the significant financial harm it can cause to individuals and financial institutions. Both state and federal authorities can prosecute bank fraud, depending on the circumstances and amounts involved.

What kind of felony is bank fraud?

Bank fraud is usually classified as a felony offense. Under federal law, specifically 18 U.S.C. § 1344, bank fraud is a federal felony that can result in up to 30 years in prison and substantial fines. The severity of the charge may depend on the amount of money involved and whether the fraud was part of a larger scheme.

Do people go to jail for bank fraud?

Yes, people convicted of bank fraud can face significant prison time. Sentences can range from several years to decades, especially in cases involving large sums of money or multiple victims. In addition to incarceration, those convicted may also be required to pay restitution and fines.

What happens if I am accused of bank fraud?

If you are accused of bank fraud, you may be subject to investigation by law enforcement agencies, including the FBI or state authorities. You could be arrested and charged with a felony, and you will have the opportunity to defend yourself in court. It is important to seek legal counsel immediately, as the penalties for a conviction can be severe and long-lasting.

Preventing Bank Fraud

Banks and financial institutions use a variety of security measures to detect and prevent fraud, including monitoring transactions, verifying identities, and educating customers about common scams. Individuals can also protect themselves by regularly monitoring their accounts and reporting suspicious activity.

Fraud Crimes/Bank Fraud