Frauds

Fraud is a deception designed to obtain money or other benefits through misrepresentation, concealment, or other forms of dishonesty. It typically involves intentional acts to mislead victims and avoid detection, and it can occur in public, corporate, commercial, or personal contexts. Fraud harms individuals, organizations, and markets by distorting information, reducing trust, and generating losses.

Common types include financial statement fraud (altering books or reporting to mislead investors), securities fraud (manipulation of markets or misrepresentation to investors), consumer fraud (misleading advertising, bait-and-switch), identity theft and identity fraud, insurance fraud, healthcare fraud, tax fraud, procurement or contract fraud, and online or e-commerce fraud (phishing, scams, payment fraud). Fraud can also be systemic, involving corruption or embezzlement within organizations or public programs.

Detection and prevention rely on internal controls, audits, forensic accounting, data analytics, and whistleblower mechanisms. Risk management, due diligence, and employee training reduce opportunities for fraud. The fraud triangle—pressure, opportunity, and rationalization—describes why individuals commit fraud and helps identify preventive measures.

Legal consequences vary by jurisdiction but commonly include criminal penalties such as imprisonment and fines, civil liabilities, and regulatory sanctions. Numerous countries maintain anti-fraud laws, enforcement agencies, and specialized units. Industry bodies, such as the Association of Certified Fraud Examiners, publish research and guidance to support investigators and organizations in detecting and responding to fraud.