Bank Fraud Charges: Definition, Examples, Common Defenses & More

Bank Fraud is a white collar crime that involves defrauding a financial institution out of money or other property.

Bank Fraud is a felony and can land someone in jail for up to 30 years with a million dollar in fines. 

Take, for example, this Nevada man who was recently convicted of bank fraud (among other things) by defrauding three banks of more than $11.2 million.

Bank fraud is not robbery and does not involve even going to the bank itself to take anything. There is no violence involved in bank fraud for the most part and that’s why it falls under the white collar crimes. White collar crimes are usually financial in nature and don’t involve physical harm to another. 

White collar crimes like bank fraud do have victims though. When bank fraud, mortgage fraud, or identity theft occur, besides the immediate victims of the crime, the general public pays the price with higher prices and fees to use your financial institution. 

If you are charged with bank fraud you need to speak with an experienced attorney as soon as possible. 

What Exactly Is Bank Fraud?

Bank fraud is knowingly executing a “scheme or artifice” to either 

1. Defraud a financial institution; Or
2. Obtain any of the money or other property under the custody of a financial institution by false pretenses.

In other words, it is illegal to intentionally deprive a bank of its assets by fraudulent means. 

There are two essential elements of the federal crime of bank fraud.

1. Fraudulent artifice or scheme: Bank fraud schemes come in various forms, such as fund diversion, accounting fraud, phishing, and stolen card payments, to name a few. Often, bank fraud is committed alongside other crimes like money laundering and wire fraud.
2. Fraudulent Intentions: Bank Fraud is an intent crime. The laws for bank fraud are to punish people who knowingly and intentionally defrauded the bank. People make honest mistakes all the time and are not deliberately trying to defraud the bank. 

You do not need to succeed in the bank fraud you were attempting to perpetrate in order to be charged with bank fraud. 

Just making an attempt to carry out bank fraud is enough to be convicted.

What Is the Most Common Form of Bank Fraud?

The most common form of bank fraud in the U.S. is credit card fraud. 

This included fraud committed using any type of payment card including credit cards, debit, gift, or prepaid cards. 

Credit card fraud is most commonly done by:

• Stealing a physical card 
• Finding a lost card, finding card information
• Credit card skimming, usually at gas stations and convenience stores

According to recent research about half of all Americans have experienced a fraudulent charge on their credit or debit cards.

More than one in three credit and debit card holders have experienced fraud on multiple occasions. 

The Payment Card Industry Data Security Standard (PCI DSS) was created to help banks process card payments securely and reduce instances of fraud.

Identity Theft and Bank Fraud

Identity theft isn’t necessarily bank fraud. Identity theft is stealing someone else’s personal information. It becomes bank fraud when that information is used to make purchases on the victims cards or against the stolen bank accounts.

For example, credit card fraud is a type of identity theft. Criminals are using another person’s financial information to make unauthorized purchases or withdraw cash from an account.

Another example is when a criminal opens a new credit card account in someone else’s name. This type of identity theft is known as “new account fraud” and can cause significant damage to the victim’s credit score and financial stability.

Defenses Against Bank Fraud Allegations

Every criminal case is unique and demands tailored strategies to effectively defend against bank fraud charges. The Defenders will build a strategy based on your individual case. 

However these are some of the most common defenses against bank fraud charges.

No Intent

In cases of bank fraud, the focus is on intent or knowledge. If your legal team can demonstrate that you acted in good faith or made an honest mistake without any harmful intentions, the charges should be dismissed. Proving a lack of intent to defraud is crucial to your defense.

No Fraud Occurred

Bank laws and regulations are confusing and constantly changing. Lawful transactions can easily be mistaken for fraudulent activities. If your attorney can show that you violated no laws then you can’t be held criminally liable for bank fraud.

The Police Violated the Law

When bringing bank fraud cases to court, it usually involves a ton of documentation including bank statements, e-mails, letters and other documents that are private.

Law enforcement might have the police do a search to look for this evidence. If the police didn’t get a search warrant or didn’t stick to the parameters of the search warrant the evidence they gather may not be admissible in court. The Defenders will ask the court for a motion to suppress unlawfully-obtained evidence. This means any evidence that is collected while violating the law or the search warrant is not usable in court.

What Are the Penalties for Bank Fraud

Bank fraud is a federal crime and these cases are tried at the federal court house.

The penalties for bank fraud are:

• Up to 30 years in Federal Prison / or
• Up to a $1,000,000 in fines, and 
• Restitution

If you’re convicted of bank fraud, you’ll likely serve your sentence in a facility outside Nevada, as it is a federal crime and there are no federal prisons within the state.

In some cases, bank fraud can be reduced through plea bargains or by presenting a strong defense.

Facing Fraud Charges? The Defenders Can Help

Since bank fraud is a federal crime with an extremely long prison term, it is imperative that you consult with an experienced lawyer. Being convicted of financial crimes can make it difficult to get a job. 

This makes it harder to pay fines and restitution. 

Investigations for bank fraud are long and complicated. 

Gathering evidence and presenting it to the prosecutor can take years.

You always want to make sure that any evidence was gathered legally. 

If your attorney can demonstrate that evidence was obtained unlawfully, they can have it dismissed. Without this evidence, the bank fraud charges become weaker and less likely to result in a conviction. Entrusting a serious case like bank fraud, which carries a potential 30-year prison sentence, to a public defender puts your freedom at risk.

Public defenders often handle numerous cases simultaneously, which limits their ability to provide personalized attention to each one. Despite their good intentions, they frequently lack the time and resources necessary to focus adequately on your case.

The Defenders has been practicing law in Nevada for many years. Our team of experienced defense lawyers have defended thousands of clients on everything from DUI, bank fraud to robbery and murder. Our team will put together the most strategic defense to get your case reduced or dismissed.

 Call The Defenders today for a consultation appointment if you have been charged with bank fraud.

Frequently Asked Questions