While it can be prosecuted on the state level, bank fraud is typically a federal crime, which means that engaging in it violates United States federal laws. Some types of bank fraud can result in a misdemeanor charge; however, many bank fraud charges are felonies. Here are a few examples of bank fraud.
Check fraud involves using checks to commit fraud. Check fraud can include forgery, which is signing a check without the proper authorization. Stealing checks also counts as check fraud. Washing is a more uncommon form of bank fraud involving checks, and it occurs when a person uses chemicals to erase information from a check.
ATM skimming involves stealing credit card and debit card information via an ATM. This is accomplished by installing recording devices on ATMs. It’s possible to steal PIN numbers and data from a card’s magnetic stripe. The information can allow someone to create fake cards, make purchases or withdraw money from an account. It’s also possible to sell the information to scammers.
Money laundering involves depositing illegally obtained money into a bank account. The purpose is to make the money seem as though it was legally obtained. A common example is when someone makes money selling drugs and deposits the money into a business checking account. Many federal crimes prosecuted under the RICO Act include money laundering.
The future of bank fraud
There are more types of bank fraud in addition to those mentioned above. It’s likely that new types of bank fraud will arise as technology and modes of payment advance.