Anything can be considered a crime, but, as the Most Honorable Judge Judy says, it just might not be actionable.

The expense of prosecuting would be much more than it's worth. It's just easy enough to ban them...
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If real money is transferred it can.
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I'm no lawyer but I know if you try and defraud the government you'll go down hard if/when you get caught. Intent to defraud anybody is just a stupid idea and trying to game a place that WANTS you to make money is even more stupid.
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Wire fraud is defined by the US code as a penalty of any criminally fraudent activity that involves electronic communication of any kind, at any phase of the event. 18 U.S.C. § 1343

Elements that define fraud

1. A scheme or artifice to defraud means creating a preconceptive notion and design with the intent to steal. The intent is one question. The language denotes the law examines both the design and intent.

What constitutes a design? A strategy, a procedure, or action which deceives one party at the cost of transferring an asset, an property, or thing of perceived value, to another party.

What constitutes intent? probably a confession or a witness statement against the defendant.

2. A second component to the statute is misleading statements that present a false agreement or understanding: fraudlent presences, representations, or promises designed to trick the innocent party into surrendering assets.

3. The wire fraud statute legislative geared for financial institutions. The penalty includes imprisonment of 20 years or up to $1 million in fines.

Is Mahalo a financial institute? (No) Mahalo is probably classified as a web portal like Yahoo.

Do financial transactions occur on Mahalo? (Yes)

Do the transaction between Mahalo and said party include a money or asset transaction (Yes)

Is the transaction execute by means of wire? (Yes) Mahalo transacts the asset transfer through Paypal. (However the word wire is not clear in my mind)

Does Mahalo have a case prescendence established by landmark case or other high visible cases?

Neder v. United States (The misrepresentation must be a meterial misrepresentation)

I'd need to research the case history of wire fraud to determine how the law applies to web portals.

Before starting a case against the defendant, three elements need to be established:
1. Proof that a scheme or artifice to defraud occurred
2. Established intent to defraud (confession, a writen statement, witness testimony)
3. Use of interstate wire facilities (Does the usage of a telecom fiber system apply?)

Condition 3 may or may not apply for internet usage. However, more financial institutions are transacting over security encrypted virtual networks and the law may not be coded to cover this new development. However, it would seem reasonable that an ammendment to cover, such types of transaction would be in the works.
Source(s):
http://en.wikipedia.org/wiki/Wire_fraud

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