fraudulent

Fraudulent is an adjective used to describe actions, representations, or documents that are intended to mislead or deceive and that cause, or are capable of causing, harm or loss. In legal and commercial contexts, a fraudulent act involves intentional deception rather than simple error or negligence.

Civil and criminal systems typically require elements such as a misrepresentation of a material fact, knowledge of its falsity or reckless disregard for the truth (scienter), intent to induce reliance, actual reliance by the victim, and damages or loss. Some jurisdictions recognize fraudulent concealment or intent to defraud as separate theories.

Common forms include fraudulent misrepresentation in contracts, securities fraud, insurance fraud, tax fraud, and identity theft. Fraudulent transfer or conveyance refers to moves intended to defeat creditors. Fraudulent invoices, fake documents, and phishing schemes are examples of deceptive practices that may be described as fraudulent.

Enforcement can involve civil lawsuits, criminal charges, penalties, restitution, disgorgement of gains, and regulatory sanctions. Organizations often address fraudulent risk through internal controls, audits, due diligence, and compliance programs to prevent or detect such activity.

Etymology: from Latin fraudulentus, related to fraud. The term is widely used in many legal and administrative systems to label conduct that is deceitful and unlawful.