Wire Fraud and Money Laundering Aren’t as Easy as They Sound – Guest Post

This is the digital era, and the world is now connected through electronic devices. Everything from emails, text messages, social media exchanges, and online transactions is expanding exponentially. Digital communication is not only convenient, but it also increases the potential for cybercrime such as wire fraud and money laundering. With our digital footprints online, we become more susceptible to identity theft, ransom attacks, financial document theft, email fraud, and credit or debit card theft. Wire fraud is a scam categorized as a white-collar crime in which the criminal impersonates legitimate parties like money lenders, business authorities, bank associations, or real estate collectors to steal money from an individual. This is done by tricking the victim into believing they are wiring money to a legitimate party’s bank account; instead, it is controlled by the fraudster. One might think it’s rare, but these fraudulent activities occur more often than you think, as criminals back themselves with trained and skilled professionals to scam others. Money laundering happens when an individual with a substantial amount of money generated through illegal activities disguises their financial assets to hide the fact that they obtained the funds through wrongful means.

If you are faced with a wire fraud lawsuit or are pursuing such a claim, you will need legal assistance, as attorneys are familiar with the nuances of legal procedures. To read more about how an attorney can help,  click here.

Wire Fraud and Money Laundering aren’t Easy — Sophisticated Laws and Systems

Most people think a person can walk away with a suitcase of money and live happily ever after. But real life is far different from what’s portrayed in the movies. The individual with a suitcase faces a serious problem rather than a solution. Now, he or she must launder that money so it emerges as legitimate, which also attracts a lot of trouble. For instance, if you have $90,000, you probably won’t go to the bank as it would increase suspicion. You might want to spend it on assets and liabilities—real estate or a car. There’s a significant chance the car or real estate owner wouldn’t accept your money, as they would require to see some financial bank statements. If they do take the money, their bank authorities will get involved, leading to all fingers pointing at you.

In the past, individuals used to connect with morally lax bank employees and bribe them to keep quiet, but now banks’ systems are also monitored by the FBI and the IRS (Internal Revenue Service). Banking laws have become more complex from the 1800s to today.

Money laundering can also be achieved by purchasing a legitimate business that operates on a service model and deals with cash. This is where audits and taxes come into play. Furthermore, in some cases, banks employ sophisticated banking software that monitors deposits and withdrawals and triggers alerts if all deposits are linked to one individual or related members. It can also trigger if the withdrawals and deposits exceed a certain threshold for a typical industry, such as $10,000. Banks and law authorities also consider an individual’s buying capacity for their business.

While wire fraud is quite common, it still has serious repercussions under federal and state law. The government, banks, and individuals dealing with large wire transfers have introduced several security systems, such as one-time passwords, background checks, and confirmation calls, to verify the authenticity of legitimate parties. It is advised not to click on shared links or download attachments from suspicious websites or unknown sources, as this can lead to phishing or theft of personal or financial data. Do not be deceived by unsolicited emails or phone calls pretending to be your family members or bank managers requesting personal information or bank transfers. The internet and media actively promote these guidelines to safeguard against wire fraud.