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Wire Fraud. DEFINITION of '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. BREAKING DOWN 'Wire Fraud'. Like any type of fraud, wire fraud is a federal offense.
Wire fraud is almost always prosecuted as a federal crime. Anyone who uses interstate wires to scheme to defraud or obtain money or property under false or fraudulent pretenses can be charged with wire fraud. Those wires include any television, radio, telephone, or computer modem.ethods Used for Online Wire Fraud. 1  Fraudsters use various methods to get personal credentials and passwords including: 2  Malware-Malware short for malicious software is designed to gain access, damage or disrupt a computer without the knowledge of the owner.