Fraud

Fraud is a deliberate act of deception intended to obtain an unfair or unlawful gain or to deprive another of property or a right. It typically involves misrepresentation, concealment of material information, or other manipulation that misleads a party.

In many jurisdictions, fraud requires four elements: a false material fact, knowledge of its falsity or reckless disregard for the truth, intent to defraud, and reliance by the victim resulting in damages. Some forms may involve omission or concealment.

Types of fraud include financial statement and securities fraud, tax fraud, insurance and healthcare fraud, identity theft, credit card fraud, procurement or contract fraud, mortgage fraud, and various online or consumer scams.

Fraud can be prosecuted criminally and pursued civilly. Penalties commonly include imprisonment, fines, restitution or disgorgement, and civil damages. Enforcement agencies vary by country; examples include the U.S. FBI and DOJ, and the UK Serious Fraud Office.

Prevention relies on internal controls, risk assessment, audits, data analytics, and whistleblower channels, along with strong governance and ethics programs. Early detection and due diligence for transactions and partners are key to reducing fraud risk.

Fraud erodes trust, damages individuals and organizations, and can affect markets and public confidence.