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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.
This type of fraud includes misappropriation of company assets (i.e., stealing cash or property by deception), financial statement fraud (lying on the financial statements) and corruption (which is typically, but not necessarily, found in government settings). + 11 others found this useful. fraud is person who cheats to gain something,for example a guy asks a other guy to pay a lot for just something old but the other guy thinks it's new.