Criminal Defense Lawyers

Recovering Losses from Wire Fraud

Wire fraud can leave victims with substantial financial losses. While recovering these losses can be challenging, legal resources exist to aid victims in getting compensation. This article will discuss common wire fraud schemes, reporting fraud, working with law enforcement, filing civil lawsuits, and using other legal tools to recover losses.

What is Wire Fraud?

Wire fraud refers to using electronic communications like email, texts, or faxes to execute fraudulent schemes and steal money or property [1]. Common examples include:

• Phishing emails asking victims to send money
• Fake invoices instructing victims to wire funds
• Compromised email accounts used to redirect wire transfers
• Romance scams requesting gift cards or cash
• Tech support scams gaining remote access to steal funds

Criminals rely on the speed, convenience, and anonymity of electronic communications to quickly take funds before victims realize they’ve been defrauded. The FBI reports that $26 billion was lost to wire fraud in 2021. Recovering these losses requires victims to act quickly using legal resources.

Reporting Wire Fraud

The first step after falling victim to wire fraud is filing reports with appropriate agencies. This creates an official record and launches investigations. Victims should report to:

• Local police
• State attorney general’s office [2]
• Federal Trade Commission (FTC) [3]
• FBI Internet Crime Complaint Center [4]
• U.S. Secret Service [5]

Provide details on how the fraud occurred, losses incurred, and any information on the perpetrator. Documenting the crime creates a paper trail for investigators and builds evidence for potential lawsuits.

Working with Law Enforcement

Cooperating with law enforcement’s investigation improves chances of convicting the fraudster and recovering losses. Victims should:

• Preserve evidence like emails, texts, receipts, and bank records
• Avoid changing passwords, closing accounts, or altering anything related to the crime
• Share any new information discovered with investigators
• Follow up regularly for case updates and provide any requested documentation

If the investigation identifies the perpetrator and assets, prosecutors can seize property and funds through forfeiture and restitution . These legal actions allow courts to compensate victims using the fraudster’s funds.

Filing a Lawsuit

Victims can also file civil lawsuits to recover losses from wire fraud. Common options include:

• Breach of contract – If wire fraud violated a contract, victims can sue for damages.
• Fraud – Victims can directly sue the fraudster for losses and punitive damages.
• Negligence – Victims may claim receiving institutions like banks negligently allowed fraudulent transfers.
• Conversion – Victims can sue for return of stolen property or its value.

Lawsuits allow victims to collect court judgements compelling fraudsters to repay losses. Even if the perpetrator has few assets now, future wages and property can be seized over time through garnishments and liens.

Using Legal Tools

Beyond lawsuits, victims have additional legal options to recover losses:

• Freezing assets – Courts can issue injunctions preventing fraudsters from spending or hiding funds during lawsuits .
• Tracing transfers – Forensic accounting can identify where stolen funds were sent to seek return of those assets.
• Voiding transfers – Courts can reverse fraudulent transfers and transactions to restore assets.
• Attaching property – Courts can place liens on real estate and other property to secure assets for repayment.

These remedies allow victims to locate and preserve assets for recovery either through settlements or court judgements. An attorney experienced in wire fraud cases can pursue these options.

Recovery Challenges

Despite various legal resources, victims face challenges recovering losses:

• Perpetrators conceal or spend funds quickly.
• Cryptocurrencies like Bitcoin used in fraud are hard to trace.
• International wire fraud shifts money overseas.
• Judgments are worthless if fraudsters have no assets.
• Civil cases are expensive and can take years.

Full recovery is difficult, especially once funds leave the country. However, prompt legal action improves chances of getting some compensation. Ongoing persistence using all available remedies can incrementally recover losses over time.

Preventing Wire Fraud

While recovery is challenging, better prevention protects against fraud losses:

• Never wire money based on unverified requests.
• Independently confirm any payment instructions by phone.
• Use multi-factor authentication on email and financial accounts.
• Keep software updated to block hacking attempts.
• Watch for phishing attempts and verify legitimacy of requests.

With vigilance and security measures, many wire frauds can be avoided altogether. But if fraud does occur, prompt legal action gives the best chance for recovery. Resources exist to prosecute fraudsters and pursue compensation through asset seizure, lawsuits, and other remedies. Justice may be difficult, but recovery is possible with persistence.