fraud

(redirected from Fraud Detection)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

fraud

the gaining of financial advantage by a person who deliberately deceives another person or business, by mispresenting himself.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
4.1.1 Global Insurance Fraud Detection Solution Market by Region
In this paper, the validation step is performed for each step to verify the effectiveness of proposed financial fraud detection model.
This process makes just-in-time or real-time fraud detection possible.
Examples of analytic techniques used in fraud detection are heuristic rules, anomaly detection, predictive models, text mining and link analysis.
“SENTRY: SigCheck fraud detection software allows fraud analyst professionals to be more effective by freeing them from looking at only intermittent check samples to putting their efforts to looking at checks our software has shown to be possibly fraudulent,” explained Stan Jaslar, CTO, SQN Banking Systems.
Due to this scarcity of real dataset, not many fraud detection models have been developed and described in the academic literature, and even fewer are known to have been implemented in actual detection systems.
To witness real-time fraud detection in action, visit the nearest Babies"R"Us store and hang out by the checkout line.
Celent, a research advisory unit of the management consulting firm Oliver Wyman, New York, published this finding in an April report, "The Market Dynamics of Claims Fraud Detection: Deal, Functionality and Technology Trends." Exploring the market of claims fraud detection systems, the report bases its analysis on information collected from Celent's 2012 research profiling information technology vendors active in claims fraud.
CyberSource is one of the world's leading providers of eCommerce payment and fraud management services, and will be providing the online shopping mall with real-time fraud detection solution to empower and safeguard the interest of Tejuri's partner retailers and their customers.
The results of the current study converge with prior research on the problem of fraud within organizations, the role brainstorming quality can play in improving the link between auditors' fraud risk assessments and their subsequent testing, the prediction of individual performance within the realm of fraud detection, and the importance of effective fraud detection.
Cybercriminals know that financial and ecommerce providers often use fraud detection systems that monitor for anomalous transactions and behaviors.