Federal bank fraud carries a maximum of 30 years in prison, one of the highest penalties for a federal fraud offense. Under 18 U.S.C. § 1344, it covers schemes to defraud a bank and schemes to obtain money from a bank by false pretenses, which can include check fraud, loan fraud, and schemes where the money ultimately came from a bank account.
This guide explains what bank fraud requires, how the Supreme Court has interpreted it, the penalties, and how these cases are defended in the Eastern and Western Districts of Missouri.
The statute
What is federal bank fraud?
Two ways to commit it under § 1344.
Defrauding a bank
Knowingly executing or attempting a scheme to defraud a financial institution. The Supreme Court held in Shaw v. United States (2016) that the bank does not have to suffer a financial loss.
Obtaining bank property by false pretenses
Knowingly executing or attempting a scheme to obtain money or property owned by, or in the custody or control of, a bank by false or fraudulent pretenses. The Court held in Loughrin v. United States (2014) that this does not require intent to defraud the bank itself, but the false statement must be the means of obtaining the bank’s property.
Common examples include altered or counterfeit checks, false information on loan or credit applications, using someone else’s account, and kiting schemes. Bank fraud is often charged alongside wire fraud and aggravated identity theft.
Penalties
What is the sentence for bank fraud?
Up to 30 years and a $1,000,000 fine, per count.
The statutory maximum is high, but the actual sentence is driven by the Sentencing Guidelines, where the amount of loss is usually the most important factor, along with the number of victims, sophisticated means, and the person’s role. Restitution is mandatory in most cases.
The statute of limitations for bank fraud is ten years, longer than the usual five years for federal offenses.
When a scheme uses another person’s identifying information, prosecutors may add an aggravated identity theft count, which carries a mandatory two-year consecutive sentence.
See aggravated identity theft and how the Sentencing Guidelines work.
Compared
What is the difference between bank fraud and wire fraud?
The target and the method.
Wire fraud requires the use of an interstate wire communication to carry out a scheme to defraud anyone. Bank fraud requires that the scheme target a financial institution or property in its custody, but does not require a wire. The maximum for wire fraud is 20 years, rising to 30 when a financial institution is affected, which is the same as the bank fraud maximum.
Many schemes fit both statutes, and prosecutors often charge both.
Defenses
How do you defend a bank fraud charge?
Intent, the connection to the bank, and the documents.
- Intent. Bank fraud requires knowing participation in a scheme. Mistakes on applications, misunderstandings about account authority, and honest business disputes are not fraud.
- The bank connection. Under Loughrin, the false statement must be the means by which the bank’s property was obtained. Schemes where a bank was only incidentally involved may not fit.
- Materiality. Misstatements must be capable of influencing the bank’s decision.
- Participation. In schemes involving several people, the government must prove each person knowingly joined.
Under investigation? See what not to do in a federal fraud investigation.
FAQ
Bank fraud questions
Is bank fraud a federal crime?
Yes. Bank fraud under 18 U.S.C. § 1344 is a federal felony with a maximum of 30 years and a $1,000,000 fine.
Does the bank have to lose money for bank fraud?
No. Under Shaw v. United States (2016), a scheme to defraud a bank does not require that the bank suffer a financial loss.
Is depositing a bad check bank fraud?
It can be, if done knowingly as part of a scheme to obtain the bank’s funds by false pretenses. Intent is usually the central question.
What is the statute of limitations for bank fraud?
Ten years, longer than the general five-year federal limitations period.
Can bank fraud be charged in state court?
The federal statute is prosecuted federally, but the same conduct may also violate Missouri laws on forgery, stealing, or identity theft and be charged in state court.
See our federal criminal defense page, or call 573-638-8529.
Talk to us
The paper trail cuts both ways.
If you are under investigation or charged with bank fraud in Missouri, call before you talk to the bank or to agents.
Attorney advertising. The choice of a lawyer is an important decision and should not be based solely upon advertisements. This article is general information about federal bank fraud as of October 2026, not legal advice, and it does not create an attorney-client relationship. The outcome of any case depends on its facts.
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