Money-flipping scams, a pressing and urgent issue in today's digital age, involve fraudsters making false claims to the victim that they have a secret method for making money or that they can double their money in a short period.
Scams are a widespread issue that can take many different forms, but they all promise instant wealth. Scammers often use social media, WhatsApp, or text messages to reach potential victims. They might also post their scams on Facebook groups or other online forums. Be vigilant for posts promising high returns with little to no risk or individuals claiming to have a 'secret method' for making money.
Once they have the victim's attention, scammers typically request a small investment, promising a profitable return or claiming the money is needed for their method. However, after receiving the funds, they vanish, leaving the victim with no return on their investment. This is a red flag to be aware of.
Scammers often target individuals in financial need, knowing they may be more willing to take risks for quick money. They bolster their credibility with social media profiles that showcase a lavish lifestyle supposedly funded by their investment business, such as luxury cars, exotic vacations, or expensive gadgets. These profiles also feature false claims about the legitimacy of their business and references to other 'clients' they've 'helped'.
Using automated bots, they send hundreds of thousands of DMs, offering to transform someone's finances quickly. In reality, there is no legitimate investment strategy involved, and money-flipping scams always end with the victim losing money.
Money Flipping Quick Facts
- Money-flipping scams have surged in recent years, particularly on social media platforms.
- Money flipping scams can be complex, involving multiple individuals and transactions.
- Often, scammers request upfront payments through peer-to-peer payment platforms like Cash App.
- The Federal Bureau of Investigation (FBI) and the Federal Trade Commission (FTC) investigate them.
- Cash App and money flipping scams are prosecuted under federal and state laws related to fraud.
- Cash App might also assist law enforcement by providing transaction data and other information.
- Cash App transaction history and messages can be used as evidence to establish the scam's operation.
- If the scam involves electronic communication, it can be prosecuted as wire fraud under 18 U.S. Code 1343.
- If the scam involves transferring illegally obtained funds, it can be prosecuted under federal money laundering laws.
- If multiple people are involved in the scam, they can be charged with conspiracy to commit the underlying crime.
- Depending on the nature of the scam, other state-specific laws may apply, related to false pretenses or defrauding.
What are Cash App Scams?
Cash App, a popular peer-to-peer payment platform, is often used in these scams. The scammers pose as financial experts, claiming they can turn a small amount of money into a larger sum within a short time. These scams typically begin at places like Craigslist or Facebook and involve the perpetrator making a fake Cash App payment, which the victim never receives.
The perpetrator sends the victim an unsolicited Cash App payment and then requests that the recipient return the funds. When the recipient initiates another transaction to send the funds back, the scammer will dispute the original transaction, claiming that they never received the funds, and keep the return.
In giveaway scams, the victim is required to download a separate app or process a test transaction to enter the giveaway, which is actually a fake giveaway. For instance, the scammer might ask the victim to send a small amount of money to a specific account as a 'test' to verify their eligibility for the giveaway. Still, in reality, this is just a way for the scammer to steal the victim's money.
Another scam involves the perpetrator listing a pet, apartment, or other kind of property below the market rate. The scammer then asks for a deposit on the sale and never provides the property.
Possible Criminal Charges
Money flipping and Cash App scams often involve layers of criminal behavior, which fall under key federal statutes. Let's review the most relevant laws and how prosecutors apply them in these cases.
- Wire Fraud (18 U.S.C. 1343). This federal statute is one of the most frequently charged crimes in cases involving money-flipping scams. It's illegal to use electronic communication, such as emails, text messages, or social media, in a scheme to defraud someone of money or property. For example, if a scammer uses Cash App or digital platforms to solicit funds under false pretenses, then wire fraud charges can be filed. Convictions for wire fraud carry up to 20 years in federal prison per count.
- Money Laundering (18 U.S.C. 1956). These charges often accompany wire fraud in money-flipping scams, especially when the scammer attempts to conceal or disguise the origins of illegally obtained funds. For instance, if someone receives money from victims through the Cash App and then transfers it to different accounts to hide the transactions, this could fall under the federal money laundering statute. A conviction carries up to 20 years of imprisonment and fines up to $500,000 or twice the value of the laundered funds, whichever is greater.
- Identity Theft (18 U.S.C. 1028). This law can occur in conjunction with money flipping scams if a scammer uses someone else's personal information to commit fraud. For example, scammers might steal a victim's account credentials or create fake profiles to solicit funds from other unsuspecting individuals. A conviction carries up to 15 years in prison, but increases if the accused has a prior conviction for this crime.
- Conspiracy (18 U.S.C. 371). These federal charges are common in cases where multiple individuals work together to conduct a money flipping scheme. Under this law, it is illegal for two or more people to agree to commit a crime, such as fraud or money laundering, and take any overt action toward its execution. A conviction carries up to five years in federal prison, fines, and restitution.
In addition to imprisonment and fines, courts often order restitution, requiring defendants to compensate victims for their losses. This financial obligation can be substantial, especially in cases involving multiple victims or large sums of money.
Defenses for Money Flipping
Suppose you are suspected of involvement in money flipping schemes. In that case, you could be facing a variety of federal criminal charges with the potential for prison time if convicted.
Suppose you have been charged with a federal crime related to money flipping, Instagram, TikTok, or Cash App scams. In that case, it is crucial to seek legal representation from our federal criminal defense lawyers immediately. This step is vital in protecting your rights and ensuring a fair defense.
We can help protect your rights, negotiate on your behalf, and develop a defense strategy tailored to your case. We will review the details of your case and identify potential defenses. Perhaps we can argue there was a lack of intent. Perhaps we can prove that you had no intention to commit fraud can weaken the prosecution's case.
Perhaps we can argue that there is insufficient evidence. If the evidence is circumstantial, improperly obtained, or fails to establish a link between you and the fraudulent activities, it might lead to dismissal or reduction of charges. Perhaps we can argue mistaken identity. If we can show that someone else used your accounts, for example, if they were hacked, we might be able to fight your charges successfully.
Perhaps we can argue entrapment. If law enforcement officials induced you to commit a crime you would not have otherwise committed, we may be able to argue against the charges successfully. For more information, contact the Hedding Law Firm, a federal criminal defense law firm in Los Angeles, California.
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