What is mail fraud? How to spot it and protect yourself

What is mail fraud? 

Mail fraud is a federal crime where a person uses a mail system or commercial interstate carrier like FedEx or UPS to defraud another person through deceit, misrepresentations, or lies. To be convicted of fraud, the defendant must have knowingly and wilfully created a scheme to defraud another individual. The thief doesn’t have to physically mail an item themselves but can be charged for convincing others to do it for them. 

How does mail fraud work?

Mail fraud involves the use of mail to carry out a scheme intended to deceive and defraud. The person on the receiving end doesn’t actually have to be fooled or lose anything — just having the intent to defraud and using the mail is enough for it to be a crime. While the goal is often to steal money or gather personal information, this scam can also cause other kinds of harm through deception.

Common types of mail fraud schemes

Scammers use various scenarios for mail fraud. Also, they often target vulnerable members of society who cannot properly vet fraud schemes. 

Common mail fraud often includes: 

• Fraud against older people. Members of the older generations are often targets of fraudulent schemes. For example, criminals may send mail regarding a person's Social Security refund to acquire their bank account details. Schemers may also attempt to perform reverse mortgage scams or try counterfeit prescription scams. 
• Sweepstakes and lottery scams. In this type of scam, a piece of mail shows up at a person's house, claiming they’ve won a giveaway or prize. To claim the prize, the person must share personal information, such as account details, or pay a fee to receive it. 
• Charity scams. In a charity scam, fraudsters mail information about a fake charitable fund that people can support by contributing money. In reality, the charity does not exist, and the fraudster collects all the money. Common charity scams often occur during election season.
• Employment fraud. Scammers involved in employment fraud scams may send false job advertisements through the mail, often including fraudulent job descriptions for phone operators, work-from-home opportunities, or online job opportunities. Employment scams use methods such as franchise fraud, pyramid schemes, short-paid postage scams, and mystery shopper or review scams.  
• Fraud against veterans. Unfortunately, veterans are often seen as easy targets for fraud schemes. Schemers send veterans mail claiming they also served in the military or are from a charity or service that helps veterans. The hope is for schemers to obtain the veteran's personal information, money, or property. 

Tactics used in mail fraud

Scammers use various tactics and deception techniques to encourage people to share sensitive personal information so scammers can steal their money or other assets. 
These schemes typically start by using pretenses, promises, or representations that offer a person some kind of benefit. Types of benefits may range from receiving a great online job offer, a prize or giveaway, an incredible return on your money with an investment, or supporting a charity that you’ve never heard of. 

Deceptive mailings often include emotionally persuasive and charged messages encouraging you to “act now” to claim your reward, great investment opportunity, or job opportunity. They may also pose as legal entities threatening legal action where you must “respond immediately” to prevent further legal action. However, legal action does not exist, because you have done nothing wrong. 

What is an example of mail fraud?

One common example of mail fraud is a Ponzi scheme. Schemers create fraudulent chain letters encouraging people to make a small investment, which they promise will yield a huge return. 

Phishing is another standard method of mail and wire fraud. Criminals create false businesses or personas and then send fake letters to obtain a person's information. These often include requests to update your information, but in reality, the scammers are just stealing your personal information.

Fake invoice scams are another type of fraud in which scammers create a fake business and request payment for an unpaid invoice. In reality, the invoice is bogus, and the goal is for the person who received the mail fraud to pay it. This commonly happens to businesses and self-employed professionals. 

Mail fraud statute and legal consequences

If you’re in the United States, multiple statutes address fraud involving mail and its legal consequences. Since the late 1800s, laws against mail fraud have been in place, with the primary statute, 18 U.S.C. § 1341, becoming part of the Criminal Code in 1872.

Since 1872, laws against mail fraud have stated that any individual who uses the mail service to defraud others can face serious penalties, including fines and imprisonment. Under modern statutes, mail fraud is typically classified as a felony, carrying severe consequences. 

In the United States, relevant statutes for mail fraud include:

• 18 U.S.C. § 1341 (Mail Fraud)
• 18 U.S.C. § 1343 (Wire Fraud)
• 18 U.S.C. § 1346 (Honest Services Fraud)
• 18 U.S.C. § 1349 (Attempt and Conspiracy)

What is the penalty for mail fraud?

Mail fraud carries serious legal consequences, which vary based on the severity of the offense. The penalties fall into two main categories:

• General mail fraud. This offense carries a maximum penalty of 20 years in prison and fines of up to $250,000 for individuals or $500,000 for organizations.
• Aggravated mail fraud. If the fraud involves a presidentially declared major disaster or targets a financial institution, the penalties increase to a maximum of 30 years in prison and fines of up to $1 million. Additionally, if identity theft is involved, the offender faces an extra two-year prison sentence.

Sentencing also takes into account an individual's past criminal history. A mail fraud conviction may also result in probation, a term of supervised release, a forfeiture order, a special assessment, or a restitution order. 

Mail fraud vs. wire fraud

Mail and wire fraud are often confused, but they differ in how scammers communicate. Mail fraud involves using a postal service to send fraudulent materials, such as letters or packages, as part of a scheme to defraud. Wire fraud, on the other hand, occurs through electronic communication methods, including phone calls, text messages, radio, television, or online transactions. While both offenses involve deception, the primary distinction lies in whether the fraud is carried out through physical mail or digital and electronic channels.

Honest services fraud 

Honest services fraud is included in the broad scope of mail and wire fraud statutes. These statutes outlaw schemes that defraud people of money and assets and schemes that defraud people of their intangible rights, including the “honest services” of a public or government official. 

The additional statute intends to reduce public corruption and create an easier way to charge those who use their public office to use their position of trust to deprive a person of their “honest service.”  

Mail theft and mail fraud

Mail theft and mail fraud are related but distinct crimes. Mail theft happens when someone unlawfully takes over your mail without your consent or knowledge, often to access sensitive information or valuables. Mail fraud, on the other hand, involves a scammer using the mail system to deceive recipients, typically to steal personal information, money, or other assets. While mail theft is a physical crime, mail fraud relies on deception and manipulation to exploit victims.

How to protect yourself from mail fraud

You can use many tactics to protect yourself from mail fraud. Here’s what you should do if you suspect a letter or other form of communication is fraudulent: 

• Do not respond to messages or communications you don’t recognize. 
• If you notice persuasive language promising something too good to be true, throw this piece of mail away. 
• Do your research if you’re unsure if a communication is mail fraud. 
• Don’t share your personal information, such as bank account details. 
• Read the fine print before sharing any information.

What to do if you suspect mail fraud

If you believe you’ve received a message that is mail fraud, here’s what you can do: 

1. 1.Keep the mail as evidence so you can share it with relevant authorities. 
2. 2.File a complaint online or by phone with the postal service. They will then take that information to investigate a claim. 
3. 3.Contact your bank or other financial institution if you’ve received fraudulent communications and are worried about the safety of your accounts. If necessary, follow up with your bank to ensure a claim is pursued.