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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 periodicals archive ?
So when a victim of consumer fraud is ready to fight back, they need to contact a consumer rights attorney such as Fraud Legal Services.
April 30, 2013 /PRNewswire-iReach/ -- Consumer Fraud Legal Services "CFLS" was recently launched to help consumers who are victims of consumer fraud or other deceptive business practices throughout the US.
Building on FICO's market-leading FICO Falcon Fraud Platform , Consumer Fraud Control allows consumers to easily shield themselves from potential fraud, as well as closely manage daily card use.
The plaintiffs claimed that JONAH; its directors, Arthur Goldberg and Elaine Berk; and one of its counselors, Alan Downing, violated New Jersey consumer fraud law by misrepresenting JONAH as scientifically based.
It was alleged that the bank violated the state's consumer fraud act and misled consumers who were seeking mortgage modifications.
Following the jury verdict in favor of the defendants, the plaintiffs appealed, arguing that defendants were not entitled to a jury trial under the Consumer Fraud and Deceptive Business Practices Act (Consumer Fraud Act), the Residential Real Property Disclosure Act (Disclosure Act), or the Real Estate License Act of 2000 (License Act).
WASHINGTON - Americans reported 20 percent more cases of consumer fraud in 2007 than the year before, with nearly a third of complaints related to identity theft, the government said Wednesday.
The FTC's Fair and Accurate Credit Transactions Act (FACTA) is one of several laws intended to combat consumer fraud, identity theft and protect privacy.
Think Safe is a work of 19 chapters covering a wide variety of topics including: 'Section 1--6 chapter' filled with Safety Precautions for Parents, 'Section 2--3 chapters' offering Safety Precautions for Women, 'Section 3--2 chapters' Safety Precautions for the Elderly, 'Section 4--2 chapters' Safety Precautions at Work, 'Section 5--2 chapters' dealing with Consumer Fraud Prevention, 'Section 6--3 chapters' filled with information pertaining to General Safety Precautions, 'Section 7--1 chapter' Protecting the Home.
accusing the retailer of false advertising and consumer fraud through ads stating its Craftsman tool line is ``Made in U.

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