What does fraud mean?
According to Investopedia, fraud is an intentionally deceptive action designed to provide the perpetrator with an unlawful gain, or to deny a right to a victim.
The Legal Dictionary further explained that fraud is 'the intentional use of deceit, a trick or some dishonest means to deprive another of his/her/its money, property or a legal right'.
Fraud often occurs with the intention to result in financial or personal gain.
Moreover, Investopedia explained that fraud 'involves the false representation of facts, whether by intentionally withholding important information or providing false statements to another party for the specific purpose of gaining something that may not have been provided without the deception'.
There are a number of ways to commit fraud, as criminals use their imagination in finding new ways to gain. Some of the most commonly committed types of fraud include:
- tax fraud
- credit card fraud
- insurance fraud
- telemarketing fraud
- identity theft
- securities fraud
- bankruptcy fraud
- cheque fraud
- fake internet sales
- website misdirection
- charities fraud
- work-from-home scams
- pyramid schemes
- debt elimination
It is important to note that fraudulent activity can be carried out by one individual or multiple individuals, or a business firm as a whole.
Return to Glossary of business failures or read "Funds Mismanagement".
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Last edited on 6 January 2022.