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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.


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.


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


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 classic literature ?
For, granting that there may be an unjust man who is able to commit injustice either by fraud or force, still this does not convince me of the superior advantage of injustice, and there may be others who are in the same predicament with myself.
Fraud and robbery are high-sounding words--justified, you think, by a fancied resemblance in some young imp to an idle daub of a dead man's Brother
It's as though in all the public assistance programs -- be it welfare, food stamps, child care or Section 8 housing -- someone put a pot of gold in the middle of the street and walked away from it with very little integrity controls,'' said James Cosper, head deputy in the District Attorney's Office Welfare Fraud Division.
Executives who strip corporations of money for their own use (called "looting control frauds" in criminological circles) use accounting fraud as a weapon of choice to inflate income and net worth.
With the projected increases in expenditures and the rising number of Medicare and Medicaid program participants, the United States Department of Justice (DOJ), the Office of the Inspector General of the United States Department of Health and Human Services (OIG) and state Medicaid Fraud Control Units (MFCU) continue to expend significant resources pursuing fraud and abuse.
Furthermore, in the process of confirming internal control effectiveness, management can and should increase antifraud efforts to identify and halt manipulation of financial reporting and asset misappropriation, since the most common incarnations of fraud in today's companies are "inside jobs.
Property/casualty insurance fraud cost insurers about $ 31 billion in 2002, according to the Insurance Information Institute.
99: Consideration of Fraud in a Financial Statement Audit (No.
The measure aims to prevent corporate fraud, protect corporate fraud victims, preserve material evidence related to a corporate fraud incident, and hold corporate fraud scofflaws accountable for their criminal wrongdoing.
The failure of the Penn square Bank of Oklahoma City in 1982 marked a new era in financial institution fraud.
Both claimant fraud and provider fraud helped inflate the cost of workers comp insurance premiums in the late 1980s and early 1990s, says insurance fraud expert Dennis Jay.
Fighting insurance fraud doesn't have to be a losing battle," said Ken Rains, manager of investigations in Travelers Managed Care and Employee Benefits Operations (MCEBO).