A fake invoice arrives by email. The payment goes out by wire. The money lands in an account opened with false paperwork, and a confirmation letter follows by courier. One scheme, at least three possible federal charges.
The FBI’s Internet Crime Complaint Center logged 1,008,597 complaints and about $20.9 billion in reported losses for 2025, up 26% from the year before. Business email compromise alone accounted for roughly $3.04 billion.
When cases like these reach federal court, prosecutors usually reach for mail fraud, wire fraud, or bank fraud. The three statutes look alike, but the differences decide how long the government has to charge, how severe the penalties are, and which evidence your organization needs to protect.
The Shared Core: A Scheme to Defraud
All three offenses grow from the same root. Congress modeled the bank fraud statute on the mail and wire fraud statutes, and courts read them together. In each case the government must generally prove:
- A scheme to defraud, or to obtain money or property through false pretenses
- Intent to defraud
- A misrepresentation that was material
Two points surprise many executives. First, the scheme does not have to succeed. Second, the victim does not have to lose money. In Kousisis v. United States, decided May 22, 2025, a unanimous Supreme Court upheld wire fraud convictions against a contractor that won government work through false certifications, even though the work was performed. Lying about something material to obtain money or property can be enough.
What separates the three statutes is the hook that brings the conduct into federal court.
Mail Fraud, Wire Fraud, and Bank Fraud at a Glance
| Mail fraud | Wire fraud | Bank fraud | |
|---|---|---|---|
| Statute | 18 U.S.C. § 1341 | 18 U.S.C. § 1343 | 18 U.S.C. § 1344 |
| What triggers it | Use of the Postal Service or a private or commercial interstate carrier | An interstate or foreign wire, radio, or television communication | A scheme aimed at a financial institution, or at money or property it holds |
| Maximum prison term | 20 years | 20 years | 30 years |
| Enhanced maximum | 30 years and a $1,000,000 fine if the offense affects a financial institution or involves a declared disaster | Same as mail fraud | Already 30 years and a $1,000,000 fine |
| Time limit to charge | 5 years, or 10 if a financial institution is affected | 5 years, or 10 if a financial institution is affected | 10 years |
Mail Fraud: The Mailing Is the Hook
Under § 1341, the Department of Justice describes two elements: a scheme to defraud, and a mailing made for the purpose of carrying it out.
- Private carriers count. A package sent by FedEx or UPS can support a mail fraud charge, just like a stamped envelope.
- Each mailing can be its own count. Ten mailed invoices in one scheme can mean ten counts.
- Routine documents qualify. Mailed invoices, checks, claim forms, and statements are common examples.
Wire Fraud: The Default Charge for Modern Schemes
The elements of wire fraud parallel those of mail fraud. The difference is the medium: an interstate or foreign electronic communication made in furtherance of the scheme.
That covers email, phone calls, and electronic funds transfers, which is why wire fraud reaches so many business schemes. It is the statute behind most cases involving business email compromise and deepfake invoice fraud.
Bank Fraud: When a Financial Institution Is Involved
Section 1344 is narrower in target and heavier in penalty. It offers prosecutors two routes:
- A scheme to defraud a financial institution
- A scheme to obtain money or property owned by, or in the custody of, a financial institution through false pretenses
In Loughrin v. United States (2014), the Supreme Court confirmed these are separate paths, and that the second does not require proof the defendant meant to defraud the bank itself. That is why forged or altered checks can lead to bank fraud charges even when the intended victim is a company. See our guide to check tampering and billing schemes for how these cases start.
Other common triggers include false loan applications and misuse of employee access to business bank accounts.
Why the Differences Matter to Your Organization
Charges stack. One scheme can support mail fraud, wire fraud, and bank fraud counts together, plus conspiracy, which carries the same penalties, and often money laundering.
The clock changes. If the fraud affected a financial institution, the federal window doubles from 5 years to 10. Civil and state deadlines run separately, as our state-by-state statute of limitations breakdown explains.
Evidence follows the statute. Each hook leaves its own trail. Steps you can take today:
- Keep envelopes, courier labels, and tracking records. They prove the mailing.
- Preserve emails with full headers, call logs, and wire confirmations. They prove the interstate communication.
- Pull and secure bank statements and signature records.
- If a fraudulent wire went out, call your bank immediately and file a complaint at ic3.gov.
- Start a documented internal fraud investigation before records are altered or deleted.
Accuracy is a compliance issue. After Kousisis, false certifications in bids, loan documents, and contracts carry criminal risk even when the work gets done.
Conclusion
Mail fraud, wire fraud, and bank fraud punish the same basic wrong: lying to get money or property. The statute that applies depends on how the scheme moved and whether a financial institution was touched.
If you suspect fraud in your organization, FraudOrder can help you document what happened and trace where the money went. Visit fraudorder.co to start a confidential conversation.
Frequently Asked Questions
Can one scheme be charged as both mail fraud and wire fraud?
Yes. If the scheme used both a mailing and an interstate electronic communication, prosecutors can charge both.
Does the victim have to lose money for a federal fraud charge?
No. The scheme does not need to succeed, and the Supreme Court confirmed in 2025 that wire fraud does not require proof of economic loss. The misrepresentation must still be material.
Does sending documents by FedEx or UPS count as mail fraud?
It can. The statute covers private and commercial interstate carriers as well as the Postal Service.
How long does the government have to bring charges?
Generally 5 years for mail fraud and wire fraud. That extends to 10 years when the offense affects a financial institution, and bank fraud carries a 10-year limit.
Is every fraudulent email wire fraud?
Not automatically. The communication must travel in interstate or foreign commerce and further a scheme to defraud.
What should a business do first when it suspects fraud?
Preserve records before confronting anyone, and limit the suspect’s system access quietly. Then bring in counsel and a forensic accountant. Our guide on who to call first covers the order.
References
- Federal Bureau of Investigation, Internet Crime Complaint Center. (2026). 2025 IC3 Annual Report. https://www.ic3.gov/AnnualReport/Reports/2025_IC3Report.pdf
- U.S. Department of Justice. (2020). Criminal Resource Manual 940: 18 U.S.C. Section 1341, Elements of Mail Fraud. https://www.justice.gov/archives/jm/criminal-resource-manual-940-18-usc-section-1341-elements-mail-fraud
- U.S. Department of Justice. (2020). Criminal Resource Manual 941: 18 U.S.C. 1343, Elements of Wire Fraud. https://www.justice.gov/archives/jm/criminal-resource-manual-941-18-usc-1343-elements-wire-fraud
- U.S. Department of Justice. (n.d.). Criminal Resource Manual 959: Ten-year Statute of Limitations. https://www.usdoj.gov/archives/jm/criminal-resource-manual-959-ten-year-statute-limitations
- U.S. Code. (2023). 18 U.S.C. § 1344, Bank fraud. https://law.justia.com/codes/us/title-18/part-i/chapter-63/sec-1344
- U.S. Court of Appeals for the Sixth Circuit. (2025). Pattern Criminal Jury Instructions, Chapter 10: Fraud Offenses. https://www.ca6.uscourts.gov/sites/ca6/files/documents/pattern_jury/pdf/Chapter%2010_0.pdf
- Congressional Research Service. (2025). Kousisis v. United States and the Reach of Federal Fraud Statutes. https://www.everycrsreport.com/reports/LSB11327.html
- Morgan Lewis. (2025). Supreme Court Broadens Wire Fraud Liability to Include Fraudulent Inducement Without Economic Loss. https://www.morganlewis.com/pubs/2025/05/supreme-court-broadens-wire-fraud-liability-to-include-fraudulent-inducement-without-economic-loss
- Cleary Gottlieb. (2025). Supreme Court Upholds Expansive Reading of Wire Fraud Statute. https://www.clearygottlieb.com/news-and-insights/publication-listing/supreme-court-upholds-expansive-reading-of-wire-fraud-statute
Disclaimer
This article is for informational purposes only and is not legal, financial, or professional advice. Reading it does not create a client relationship with FraudOrder. Laws change and facts differ, so consult a qualified attorney or other professional about your specific situation. For questions about FraudOrder services, visit https://fraudorder.co/