fraud

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Fraud

Any attempt to deceive another for financial gain. A clear example of fraud is selling a new issue that does not really exist. That is, the company can collect money from investors and, rather than use it to finance operations, pocket the money and do nothing. There are a number of types of fraud. Common types include forgery of documents, false claims in insurance, and filing bankruptcy to avoid debt rather than because of financial hardship.

fraud

Deception carried out for the purpose of achieving personal gain while causing injury to another party. For example, selling a new security issue while intentionally concealing important facts related to the issue is fraud.

fraud

the gaining of financial advantage by a person who deliberately deceives another person or business, by mispresenting himself.

fraud

A deceitful practice. Fraud consists of a misrepresentation of a material fact that is relied upon by another party to his or her detriment.There is no requirement that the misrepresentation be intentional.The thing misrepresented must be a fact; it is very difficult to prove fraud when one fails to fulfill his or her obligations but had good intentions in the beginning.

There are three types of fraud:

1. Intentional fraud. Punitive damages may be assessed for this type of fraud.

2. Negligent fraud. As when one makes a statement recklessly but without any intention to deceive, and someone relies on that statement and is injured when it turns out to be false. One example would be a real estate agent telling a buyer that all appliances are new when, in reality, the agent didn't know but thought they looked new. Depending on the degree of recklessness involved, this type of fraud may or may not support punitive damages.

3. Innocent fraud. As when one takes steps to confirm facts but is perhaps mistaken or given mistaken information, and then relays that information to someone else who relied on it and was injured.

The Statute of Frauds is a rule that says certain contracts must be in writing, including contracts having to do with real estate. It has nothing to do with fraud, per se, except to protect against possible fraud by requiring a writing.

References in periodicals archive ?
Once the fraud detection system flags potentially fraudulent activity the Yroo user is immediately quarantined and a Yroo team member immediately reviews their account, history and recent activities, often contacting the person directly.
With the rise in revenue losses because of fraud incidences and money laundering, the demand for fraud detection & prevention and anti-money laundering solutions is also increasing.
In response, SQN has developed fraud detection tools that enable electronic document signing, mobile signature capture, and online signature capture, providing financial institutions with the solutions they need for enterprise-wide signature verification.
The technology uses transaction information provided by customers during the online checkout process to make instantaneous fraud detection decisions.
Nearly 80 percent of financial institutions are affected by fraud each year and deploying Integrated Fraud Detection allows them to protect their businesses and their customers.
As the software learns the traffic patterns of users, fraud detection triggers are automatically optimized for each hour of the week.
The company runs the top independent click fraud detection service in the industry, the Click Fraud Network (www.
By 2017, passive biometric analysis will become a standard feature of at least 30 percent of one-stop fraud detection solutions - up from less than 1 percent today.
This year, BBVA Bancomer rolled out Fair Isaac's fraud detection analytics to protect its online card transactions.
Effective fraud detection will always be necessary for companies whose financial accounts are vulnerable to attack.
For more than 20 years, SQN Banking Systems has provided integrated fraud detection and process improvement products for the financial industry, meeting the needs of financial institutions of all sizes.
The companies' alliance and the subsequent integration of SQN's Signature Verification software and Antinori Software's ASI\16 Check Fraud Detection system products will give banks a complete check fraud detection package.