Definition - What does Fraud mean?
Fraud refers to a civil or criminal action where one individual purposely deceives another individual for the purpose of gaining an unfair advantage of some sort.
While fraud is a criminal offense in nearly every jurisdiction, the specific definition of fraud varies from jurisdiction to jurisdiction.
Justipedia explains Fraud
Typically, fraud is used to obtain money or valuables from individuals or organizations. However, fraud may also be used to obtain other items, such as Social Security numbers and drivers' licenses. Generally speaking, there are five things that a person must prove in order to show that fraud has occurred:
- An individual must show that a false representation has occurred.
- An individual must show that the person who made the false statement did so knowingly or recklessly.
- An individual must show that the false statement was made with the purpose of having the individual rely on the false statement.
- An individual must show that they relied on the false statement.
- An individual must show that they suffered tangible damages as a result of the false statement.