Wire Fraud: What It Is, Why It Matters, and How You Can Protect Yourself

Wire fraud is one of the most prevalent and costly forms of financial crime today, and it’s evolving fast. With tactics ranging from phishing emails to sophisticated business email compromise schemes, criminals are using electronic communication to deceive victims and divert funds. 

As recent high-profile prosecutions demonstrate, no organisation or individual is immune. In this article, we explore what wire fraud is, examine notable cases, and outline practical steps you can take to reduce your risk.

What Is Wire Fraud?

Wire fraud is a form of financial crime that involves the use of electronic communications such as email, phone calls, text messages, or the internet to intentionally deceive victims and steal money or property. It is a serious felony in the United States, with penalties often exceeding 20 years in prison for large-scale offences. 

Importantly, wire fraud does not require the victim to suffer an actual financial loss. In May 2025, the US Supreme Court clarified that fraudulent inducement – lying to persuade someone to enter into a transaction – is sufficient for a conviction under 18 U.S.C. 1343. This broadens the scope of wire fraud enforcement and highlights the importance of recognising deceptive tactics early.

Notable Cases: Wire Fraud in Action

Wire fraud can target individuals, businesses, and investors alike. Recent high-profile cases illustrate the scale and complexity of these crimes:

Sam Bankman-Fried (2024): The FTX founder was sentenced to 25 years in prison for defrauding investors and lenders out of more than $3 billion through false representations and misuse of customer funds.
Karl Sebastian Greenwood (2023): Co-founder of OneCoin, a fraudulent cryptocurrency scheme, Greenwood received a 20-year sentence for orchestrating a $4 billion wire fraud.
Evaldas Rimasauskas (2019): Ran an email compromise scam that impersonated major tech companies, stealing over $120 million from unsuspecting organisations.
Pension Liberation Scams: The Financial Conduct Authority issued 184 scam warnings in the first half of 2024 after a surge in fraudulent online investment schemes targeting individuals’ pension savings.

While the monetary values may vary, these cases all demonstrate how online deception can be used to exploit trust, manipulate behaviour, and divert funds at scale.

How to Protect Yourself and Your Organisation

For Businesses:

• Implement strong financial controls. Mandate dual approval for payments and confirm unexpected requests independently.
• Define approval limits by seniority and role in alignment with the company’s risk appetite. Document in the risk appetite statement.
• Implement rule and AI based real-time monitoring and fraud detection tools. Ensure rules and AI models remain fit for purpose through periodical reviews.
• Schedule periodical internal and external risk audits  to assess policies and processes and IT systems fitness. 
• Train your workforce. Provide fraud awareness training and run scenario-based desktop simulations to test staff responses to phishing and impersonation threats.
  
• Secure your systems. Mandate multi-factor authentication and apply “need to access” principles  for sensitive financial platforms and data.

For Individuals:

• Be cautious with unsolicited contact. Never share personal or financial details unless you initiated the communication.
  
• Adopt password good practices such as strong passwords and secure logins through effective use of password vaults. Avoid password reuse and enable multi-factor authentication.
  
• Monitor your financial activity and make use of account activity notifications from the bank. Review bank and credit card statements regularly and consider credit monitoring services.
  
• Stay alert to urgency or pressure. Fraudsters often create false urgency to trigger quick, uncritical decisions.
  

The Bottom Line

Wire fraud is a growing global threat that leverages digital communication to exploit trust and steal funds. Whether targeting individuals, startups, or multinational firms, the tactics are often similar, and increasingly effective. Staying informed, putting robust controls in place, and fostering a culture of vigilance are essential steps for anyone looking to protect themselves against this type of crime.

At AJC, we support organisations in building stronger fraud defences, improving compliance frameworks, and preparing for emerging threats. If you are reviewing your fraud prevention strategy, we would be happy to help.

Contact us on 020 7101 4861 or email us at info@ajollyconsulting.co.uk if you think we can help.

References

Financial Conduct Authority
U.S. Department of Justice – Sam Bankman-Fried Sentenced
U.S. Department of Justice – OneCoin Co-Founder Sentenced
U.S. Department of Justice – Evaldas Rimasauskas Sentencing

Image accreditation: Marcos Paulo Prado from Unsplash.com. Last accessed on 17th June 2025. Available here.