Online Bank fraud penalties explained
July 5, 2023If you’re facing charges for online bank fraud, a solicitor can be a valuable asset. If convicted on indictment, the maximum penalty is 10 years imprisonment and possibly a confiscation order. However, with the help of a specialist fraud defence solicitor, it may be possible to reduce the severity of the penalty or avoid a guilty verdict entirely.
Understanding The Fraud Act 2006:
The Fraud Act 2006 outlines the legal framework for dealing with various types of online bank fraud, including mobile phone scams, email spam, and mass marketing fraud. The act provides different sections for different types of fraud. This is important because when facing charges, the specific section(s) under which the accused is charged determines the maximum sentence that can be imposed.
Section 1 of the Fraud Act creates a general fraud offence, with specific ways of committing fraud outlined in Sections 2, 3, and 4. Fraud by false representation is covered in Section 2, fraud by failure to disclose information when there is a legal duty to do so is covered in Section 3, and fraud by abuse of position is covered in Section 4. Other relevant sections include making or supplying articles for use in fraud (Section 7) and obtaining services dishonestly (Section 11). If facing charges under the Fraud Act 2006, seeking legal representation from a fraud defence solicitor is essential.
The maximum penalties for offences:
The penalty for offences under Sections 1, 7 and 9 is 12 months of imprisonment upon summary conviction and 10 years of imprisonment upon conviction on indictment. Meanwhile, under Sections 6 and 11, the penalty is 12 months of imprisonment upon summary conviction and 5 years of imprisonment upon conviction on indictment. In addition, Section 10 of the Act elevates the maximum penalty for offences that violate Section 458 of the Companies Act 1985 to 10 years of imprisonment.
What factors does a judge consider when determining a sentence?
When deciding a sentence, the judge considers various factors and considers an appropriate penalty for the particular case. Although maximum sentences are available, being found guilty of fraud does not necessarily mean receiving the maximum punishment. To determine the sentence, the judge refers to the Sentencing Guidelines, which provide a range of sentences for each offence. The judge then considers the following:
- The extent of harm caused
- The level of your involvement or culpability
- Mitigating factors, including genuine remorse and cooperation with the investigation
- Aggravating factors, such as previous convictions
Summary of conviction vs conviction of indictment
The sentencing range for fraud depends on whether the offence is charged on a summary basis or on an indictment, which can result in a maximum penalty of 12 months to 10 years imprisonment. Summary offences, which are less serious, are heard at the Magistrates’ Court except for certain circumstances that require referral to the Crown Court. Indictable, more serious offences are heard at the Crown Court and can have harsher penalties. Therefore, it is necessary to confirm the type of offence being charged to determine the maximum penalty for fraud. The maximum penalties are 12 months imprisonment for a summary conviction and between 5 to 10 years imprisonment for a conviction on indictment.
Consequences of fraud convictions
A fraud conviction can result in imprisonment for a period ranging from 12 months to 10 years. Apart from imprisonment, there are other penalties that the court can impose, including ancillary orders. An ancillary order is a court ruling requiring the offender to perform or abstain from a specific action. In cases of fraud, some common ancillary orders are:
- Restraint Orders – which freeze assets (not to be confused with Restraining Orders used in domestic violence cases).
- Reparation Orders – require the offender to complete specified activities that benefit the victim or the community.
- Confiscation Orders – which allow authorities to seize assets gained illegally.
In addition, those who were functioning as company directors may face disqualification proceedings. It is highly advised that you seek a fraud defence solicitor as soon as possible if you are facing a fraud charge.
Can a fraud conviction be removed from my criminal record?
When you are convicted of a criminal offence, it is recorded in your criminal record and stored in a national database. The length of time the conviction remains on your record depends on whether it is ‘spent’. The sentence length plus a certain number of years determine when a conviction is spent, and only then can it be removed from the database.
The conviction is never spent if an adult is convicted of fraud and sent to prison for more than four years. However, if the sentence is less than six months, it is spent after the sentence length plus two years.
Cost and victim surcharge
In addition to imprisonment and other penalties, a fraud conviction may have financial consequences. The offender may be required to pay some of the investigation costs, including the prosecutors. Additionally, they may be required to pay a victim surcharge ranging from £20 to £70 (subject to change as the range is currently under review). The surcharge contributes to a fund that compensates victims for their damages.
To discuss an online bank fraud offence, we are here to assist and can be contacted 24 hours a day. At Cunninghams, we specialise in the defence of allegations of serious fraud with a team of highly trained fraud defence solicitors.
With over 30 years experience in representing clients interviewed by the investigative authorities and successfully representing in court proceedings those unfortunate enough to face prosecution in this complex area of criminal law.
Our serious fraud department will pull together a strong defence team tailored specifically to the needs of your case.