Bank fraud is a serious accusation that can lead to criminal charges. In Ohio, bank fraud may be charged as a misdemeanor or felony conviction depending on the severity and nature of the crime. If you are convicted of bank fraud, you could serve many years behind bars and become responsible for thousands of dollars in fines.
There are many types of bank fraud, including impersonation, new account fraud and check fraud. In today’s digital era, a lot of bank fraud happens on computers and smartphones. Here is what you should know:
What is digital bank fraud?
Digital bank fraud is a white-collar crime, It involves the illegal deception or manipulation of others to steal sensitive data for the purpose of accessing online banking and financial information. Criminals can access online banking to use credit cards or savings for personal gain. Digital bank fraud is increasing as more people use online banking systems.
Some common forms of digital bank fraud include:
- Phishing attacks: Fake emails or websites used to gain access to banking information through impersonation or malware.
- Identity theft: The use of a person’s identity to access banking data to make unauthorized transactions or apply for loans.
- Unauthorized transactions: Illegitimate transactions that were not approved by an account holder to deplete funds.
- Account takeovers: Changes to a person’s banking information to prevent them from accessing their funds.
Digital bank fraud is an increasing issue – which makes it a “hot target” for criminal enforcement actions.
How can digital fraud be accidental?
While digital bank fraud is often associated with malicious intent, there are cases where individuals may commit fraud unknowingly. Certain banking mistakes, misunderstandings or technological oversights can lead to unintentional fraudulent activity. Here’s how it can happen:
- Mistaken credit card disputes: A legitimate credit card purchase may have been disputed by the cardholder without realizing they made the transaction. In the meantime, the bank may issue a refund, only to later believe the customer defrauded them.
- Accidental money transfers: Sending money to the wrong recipient through digital banking apps (e.g., Zelle, Venmo or PayPal) can be a costly mistake. If the recipient refuses to return the funds, some people might attempt to dispute the transaction as fraud, even if they initially authorized it. Banks may not always recover the money, and falsely reporting a legitimate transfer as unauthorized could be considered fraudulent.
- Credit card auto-saving: Credit card information may have been auto-saved on a computer – and then accidentally used to make purchases by the next person who logs in on the device. Even if there was no intent to steal, a roommate or an employer may not believe the person who made the mistake.
Legal guidance can help individuals address concerns of digital bank fraud investigations or charges. Whatever the situation, it’s critical to get support as soon as a problem arises.
