| wire fraud n. Fraud committed by means of electronic communication, as by telephone or modem. |
Wire Fraud
A situation where a person concocts a scheme to defraud or obtain money based on false representation or promises. This criminal act is done using electronic communications or an interstate communications facility.
Investopedia Commentary
Like any type of fraud, wire fraud is a federal offense. A person can be found guilty for their misuse of a communication facility, regardless of whether their scheme actually defrauded anyone.
Related Links
Investment Scams Tutorial
Policing The Securities Market: An Overview Of The SEC
See also: Caveat Emptor, eCommerce, Smoking Gun