📅 2026 Update: Changes in Fraud Penalties and Reporting

Since the original article on intrinsic fraud was written, important updates have occurred in U.S. fraud laws. Notably, penalties for various types of fraud have increased significantly. These changes impact how authorities handle fraud cases and the potential consequences for offenders.

The earlier article continues further down this page, providing foundational information on fraud types and reporting methods.

⚖️ Federal Fraud Penalties

As of October 7, 2026, penalties for federal fraud crimes have become stricter. For example, both wire and mail fraud convictions can now result in up to 20 years in federal prison per count. If the fraud scheme affects a financial institution or exploits a federally declared disaster, the penalty can rise to 30 years and a fine of up to $1,000,000.

🏦 Bank and Mortgage Fraud

Also effective from October 7, 2026, bank fraud convictions can lead to up to 30 years in prison and a fine of $1,000,000. Similarly, those convicted of mortgage fraud under 18 U.S.C. § 1014 now face the same penalties. These changes reflect a growing emphasis on protecting financial institutions and consumers from fraud.

💳 Credit Card and Identity Theft

Convictions for credit card fraud can now result in up to 10 years in prison for a first offense. Meanwhile, identity theft convictions can carry a penalty of up to 15 years in prison for most offenses. These increased penalties highlight the serious nature of these crimes.

📞 Reporting Fraud

Consumers can report fraud through multiple channels. They can contact the Federal Trade Commission (FTC) directly via their website or call their helpline. Quick reporting is essential to help authorities track and combat fraudulent activities.

📌 Key Points to Remember

  • ⚖️ Increased penalties for various fraud types, including up to 30 years in prison.
  • 💳 Credit card fraud now carries a potential penalty of up to 10 years.
  • 🏦 Bank and mortgage fraud offenses can lead to up to 30 years in prison.
  • 📞 Report fraud promptly to the FTC or relevant authorities.
  • 🔒 Stay informed about new fraud tactics and prevention methods.

💡 Tips for Preventing and Reporting Fraud

Reviewing your specific situation with your attorney can help you navigate legal complexities.

🛡️ Monitor Financial Statements

Regularly check your bank and credit card statements for any unauthorized transactions. Catching these early can help mitigate losses and support fraud reporting.

🖥️ Use Strong Passwords

Create strong, unique passwords for your online accounts. This simple step can significantly reduce your risk of identity theft and unauthorized access.

🚨 Set Up Fraud Alerts

Consider setting up fraud alerts on your credit reports. This can help detect and prevent unauthorized activities on your accounts.

📞 Report Suspicious Activity

If you notice anything unusual, report it promptly. Quick action can help prevent further fraudulent actions and may assist in recovering losses.

📚 Educate Yourself

Stay informed about common fraud schemes and tactics. Understanding how fraudsters operate can help you avoid falling victim to scams.

🏆 Top Services for Fraud Monitoring and Protection Ranked by User Reviews (2026)

This section focuses on services that help monitor and protect against fraud. The listed services are based on Trustpilot data checked in October 2026. Ratings can change over time as more customers share their experiences.

While star ratings provide insight, unhappy customers often leave more reviews, which can skew perceptions.

🥇 1. NordProtect

NordProtect has been rated 4.2 on Trustpilot. It is known for its fraud monitoring, identity theft protection, and credit monitoring services. However, some users mention that its availability is limited in certain regions, which may affect potential customers.

🥈 2. Aura

Aura holds a 4.5 rating on Trustpilot. This service is recognized for identity theft protection, credit monitoring, and data removal services. However, some reviewers note that prices are higher compared to competitors, which could be a factor for budget-conscious consumers.

🆓 Free Options for Fraud Reporting and Prevention

Consumers can access free resources from the Federal Trade Commission (FTC) and the American Bankers Association Foundation. The FTC offers guidance on reporting and preventing fraud, while the ABA Foundation provides educational materials to help recognize and avoid scams.

🔎 What to Compare When Choosing Fraud Protection Services

  • 💵 Cost of services and whether they fit your budget.
  • 🔍 Coverage for different types of fraud, such as identity theft and credit card fraud.
  • 📞 Customer support availability and responsiveness.
  • 📝 User reviews to gauge overall satisfaction and reliability.
  • 🛡️ Features offered, like monitoring and alerts.

❓ Frequently Asked Questions

❔ What should I do if I suspect fraud?

If you suspect fraud, report it immediately to your bank and the FTC. Prompt action can help mitigate losses and prevent further damage.

🔒 How do I set up a credit freeze?

You can place a credit freeze for free with all three major credit bureaus. This prevents new accounts from being opened in your name without your consent.

📈 What are the signs of identity theft?

Signs of identity theft include unfamiliar transactions, receiving bills for services you didn’t use, or alerts about accounts you didn’t open. Monitor your credit reports regularly for any discrepancies.

🕵️ How can I report a scam?

You can report a scam to the FTC through their website or by calling their helpline. Reporting scams helps authorities take action against fraudsters.

💳 What is my liability for unauthorized credit card charges?

Under the Fair Credit Billing Act, you are liable for up to $50 of unauthorized charges if you report the loss or theft of your credit card promptly.

📊 How often should I check my credit report?

You should check your credit report at least once a year. Regular monitoring can help you catch any unauthorized activity early.

⚖️ Recent Court Cases Related to Fraud

Recent court rulings have highlighted the increasing penalties for various types of fraud, including wire and mail fraud. These cases reflect the seriousness with which the legal system treats fraud and its impact on victims.

For more recent rulings, you can browse more rulings on the news page.

End of October 2026 Update






 



What is Intrinsic Fraud?



Intrinsic fraud is a specific false representation or lie that was used as part of the fraud as a whole.  In other words, intrinsic fraud is used to facilitate the crime and is the actual crime being prosecuted during a case.  Intrinsic fraud is different than extrinsic fraud. 

Intrinsic Fraud


 



What is extrinsic fraud?



Extrinsic fraud involves the withholding of information or similar means that deprive a person of their rights to obtain evidence or enforce an action.  The fraud usually concerns matters that aren’t part of the case, and common examples of fraud include the following and more:



 



·         bribing a judge or juror



·         threatening a witness



·         fabricating evidence



·         preventing a party from filing a motion or modifying a motion



 



A Case Study to Differentiate Intrinsic Fraud and Extrinsic Fraud



In order to clarify the meanings, we’ll look at the following case filed in the Court of Appeals of Indiana: Angela L. Bauer vs. David B. Bauer. 



 



Angela and David divorced on October 13, 2006, and the parties had two children at the time.  They chose joint custody, and the wife was awarded primary custody.  The husband was ordered to pay $462.00 per week for child support. 



 



Mr. Bauer filed a Petition for Modification and Contempt Citation to modify his child support obligations.  A hearing was then held, and Mr. Bauer presented his 2007 income tax return as evidence.  The court reduced the child support to $215.58 per week.  Mrs. Bauer filed a motion to correct error, but she was denied because she did not seek an Order to have the court issue the Clerk’s Record. 



 



During her motion, Mrs. Bauer filed a motion because she alleged that her husband committed fraud.  According to Trial Rule 60(B)(3), a motion for intrinsic fraud, extrinsic fraud, or fraud on the court can only be brought forward if the fraud was committed by an adverse party and adversely affected the moving party.  If the motion applies, it must be filed no longer that one year after the judgment began. 



 



Mrs. Bauer stated her husband committed extrinsic fraud because he “improperly procured the court’s jurisdiction.”  She also argued that “her children were denied their day in court due to scheme to defraud the Court of appropriate and relevant information.”



 



The court sided with the husband, and here’s why.  The tax return was provided to the Mrs. Bauer, and her counsel informed the court that she disagreed with the income figures.  However, she never asked the court to conduct further discovery, and it was not until a year later that she obtained evidence that suggested Mr. Bauer lied about his income. 



 



Even if Mr. Baurer provided a false picture to the court about his income, his actions did not stop Mrs. Bauer from asking the court to again determine the child support.  Therefore, the fraud that Mrs. Bauer alleged was intrinsic instead of extrinsic.  However, in order for the court to reexamine the intrinsic fraud, she was required to file motions within a year.