What is fraud?
Definition - 'abuse of position, or false representation, or prejudicing someone's rights for personal gain'.
Fraud is when trickery is used to gain a dishonest advantage, which is often financial, over another individual, business or organisation.
Fraud is when a person or organisation uses deception to cause harm, often financial, to another. Fraud costs each UK adult an average of £765 a year.
Did you know?
Fraud and the law- Fraudulent activity can take place through any type of media, including mail, phone, wire, and the Internet (computer crime and Internet fraud).
There are many different types of fraud that are punishable by law and can be committed by individuals, organisations or businesses.
The act covers:
- Offence of Fraud
- Fraud by false representation
- Fraud by failing to disclose information
- Fraud by abuse of position
- “Gain” and “loss”
- Possession etc. of articles for use in frauds
- Making or supplying articles for use in frauds
- Participating in fraudulent business carried on by sole trader etc.
- Participating in fraudulent business carried on by company etc.
- Penalty obtaining services dishonestly
The effects of fraud:
- Fraud affects every level of society.
- Fraud has a negative impact on individuals, organisations, businesses and communities.
- Fraud costs every UK adult member of the population £765 per year on average – both through direct impacts of frauds and recovered indirectly through taxation and the increased costs of products and services.
Individuals who fall victim to fraud can experience physical, psychological, financial and social damage. The impact of fraud can also be detrimental for corporate victims. Small/medium sized companies are sometimes unable to recover from the financial or reputational damage caused. Large multi-national organisations can feel the effects through the increased cost of doing business.