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 ?
Fraudsters are always looking for new ways to scam the public.
Fraudsters will contact the victims to ask for the details of their pre-paid card and copies of statements in order for them to add the grant funds.
34% of the fraudsters are executives, 32% are managers, and 20% are staff members;
Insurance fraud most wanted lists are generally online lists featuring the names and pictures of alleged fraudsters.
Technical: Fraudsters have the ability to spoof caller ID and use applications such as Skype or Google Voice to hide their identity and location.
Tech-savvy fraudsters are using technology in a variety of ways to perpetrate frauds.
And while its clear that fraudsters are all too comfortable making use of technology to perpetrate a fraud, we are seeing little evidence that companies are doing the same to prevent it.
If you find that it is all from sellers (as opposed to people who have purchased from them) it's highly likely you're dealing with a fraudster.
In a version of the con, also known as the "no hang-up scam", the fraudsters use technical tricks to stay on the phone line.
Opportunity is provided by weakness in internal systems, the ability of the fraudster to override controls, their skills as a fraudster and the collusion from others.