Federal Internet Fraud Laws & Charges + Statute of Limitations

October 31, 2013 6:52 pm0 commentsViews: 323

Computer & internet fraud refers to any form of fraud that is facilitated using an electronic communication network such as the internet. Fraud, in turn, is defined in federal law by 42 CFR 455.2, which refers to “an intentional deception or misrepresentation” by any individual which is intended to result in unauthorized benefit or material gain. The definition encompasses both federal and state laws against fraud.

Computer & Internet Fraud Laws

Although many states have existing laws against computer and internet fraud, it is important to understand that most acts of fraud committed on the internet will, by their nature, constitute a federal crime. This is because the infrastructure by which online fraud takes place is distributed throughout the United States and most acts of fraud will inherently cross state borders. Acts of fraud which occur exclusively within one state jurisdiction may be prosecuted under the relevant state laws.

Computer & Internet Fraud Crimes & Charges

Computer and internet fraud laws are intended to protect individuals from having their assets, personal property, or personal data compromised by individuals on the internet. There are many different forms of online fraud which, in addition to being prosecuted as internet fraud on the federal level, may also be prosecuted as acts of wire fraud, mail fraud, or even terrorism. According to 18 USC  § 1030, some examples include:

  • Intentionally accessing any computer or any computer network without authorization in order to obtain information such as financial records, information from any agency of the United States government, or information from any protected computing device.
  • Intentionally access any computing device used, or used exclusively, for the business of the United States government, whether or not information was removed or altered while accessing that device.
  • Knowingly causing damage to a protected computer through the transmission of such agents as a computer program, information, code, or other types of agents which then cause damage.
  • Unknowingly or recklessly causing damage to a protected computer through any unauthorized access.

Computer & Internet Fraud Punishment

Computer and internet fraud punishment can include imprisonment of up to twenty years, with imprisonment of up to ten years recommended in cases where the individual does not have a past criminal history regarding computers. In addition, fines may be imposed based upon the value of the damage done to any protected computer systems as well as the value of any information that was stolen, compromised, or damaged. The individual may be required to forfeit access to the internet for some period of time or serve supervised probation.

Computer & Internet Fraud Sentencing Guidelines

Computer and internet fraud sentencing guidelines recognize distinctions based upon the value of data compromised or stolen, with more serious penalties possible when the value exceeds $5,000. Cases in which the unauthorized computer activity caused or may have caused serious damage to the interests of the United States, including damage to national security, may meet with imprisonment up to twenty years as well as other charges. Cases in which the unauthorized access caused serious bodily harm to any individual may also qualify for a longer federal prison sentence.

Computer & Internet Fraud Statute of Limitations

Under the expectations outlined in federal statute, 18 USC 3282, no individual may be prosecuted for a noncapital offense unless the indictment is found or information is instituted within five years, or 60 months, of the commission of the offense.

Computer & Internet Fraud Cases

Because of the nature of the communications networks used to commit computer and internet fraud, it is very easy for such cases to become federal crimes or have federal elements. There have been numerous high-profile computer security cases in the past decade, many of them allegedly perpetrated by members of underground hacking “gangs” or “collectives.”

  • Hackers associated with the international “hacktivist” organization Anonymous launched distributed denial of service (DDoS) attacks on servers belonging to major credit card companies throughout 2012, allegedly in protest of the companies’ decision to withdraw support for donation collection for certain websites (SlashGear)
  • The Better Business Bureau and other organizations have noted an uptick in federal computer and internet fraud cases where anonymous third-parties claim to be agents of the federal government or infect victims’ computers with software purporting to be part of a federal investigation. The software then collects “fines” from the victim. (BBB)

Computer & Internet Fraud Quick Links & References

Internet Fraud Charges News

Texan charged in first bitcoin securities fraud Ponzi case

Reuters - 2 weeks ago
Known online as "pirateat40," Shavers allegedly gained control of as much as 7 percent of the bitcoin market by promising investors up to 7 percent weekly interest, or 3,641 percent...

Estonian man faces cyber scam charges in US

Bangkok Post - 3 weeks ago
Charges against Tsastsin stem from "a massive and sophisticated Internet fraud scheme" that involved infecting more than four million computers located in more than 100 countries with...

Utah businessman at the center of attorneys general bribery case moving toward ...

The Republic - 1 week ago
SALT LAKE CITY — Utah businessman Jeremy Johnson is scheduled to go to trial in March on Internet fraud charges, but issues remain with the evidence in the case. A federal judge said during a...

Midwest rappers, others charged with fraud

Daily Mail - 4 weeks ago
CHICAGO (AP) — Members of an Indiana-based rap group called RACK Boyz and other suspects from Illinois made hundreds of thousands of dollars in a bank fraud scheme that included wooing participants...

Man charged for fraud, computer crimes

Duncan Banner - 4 hours ago
A Duncan man was charged Friday for allegedly charging $8,000 from a Florida woman's credit card, and fraudulently soliciting $630 for a firearm over the Internet. Duncan Police Detective Dustin...

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Internet Fraud Laws by State

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming