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Related to Frauds: Accounting Frauds


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


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.


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


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.
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Organised fraud accounts for much of the new injury fraud Aviva detects.
By being aware of these scams, the police say you can avoid becoming a victim of fraud.
The service takes crime reports from victims of fraud and provides them with a crime reference number.
"The current financial crisis that the world's experiencing is creating an environment where the risk of fraud will increase as businesses come under pressure to show results.
The latest Gulf Cooperation Council (GCC) Fraud Survey (2008) carried out by KPMG, the global network of professional service firms providing audit, tax, and advisory services, said respondents to the survey had reported individual losses of up to $100 million.
Insider dealing/market abuse - The report says this is 'particularly difficult to classify' Insurance fraud - Insurance companies may be victims of a variety of frauds by businesspeople (eg arson for profit, maritime fraud) and consumers (eg inflated claims, fictitious claims) Tax fraud - involves failure to pay either direct, indirect, or excise taxes.
The economists who designed the systems had no experience in fraud prevention and seem to have assumed that the necessary control mechanisms would develop spontaneously Instead, without a rule of law, honest courts, real banks or effective secured transactions, the result too often was endemic fraud.
A key in identifying fraud risks involves the audit committee's understanding of what may threaten management's ability to accomplish its objectives and strategies, including competition, capital constraints or regulatory change, to name a few.
This column is not a complete list of tax fraud schemes or tax protester theories; however, it does present some of the more prevalent ones.
Internal Audit was the main contributor to detecting the most disruptive fraud experienced by respondents in the last 24 months (20 per cent) followed by internal tip-offs (18 per cent), fraud risk management, and suspicious activity monitoring (both at 14 per cent).
There is even greater significance for the integrity of the audit process; if the audit team's view is that detecting fraud is not really an auditor's job, then compliance with the requirements of auditing standards on fraud detection may become a rote exercise and not a focus of the audit The purpose of this article is to clarify the true differences between an audit of financial statements and a fraud audit, and to dispel some of the myths that surround comparisons of them.
24 -- AppLift, a leading mobile advertising technology company, has today expanded its fraud prevention suite with the Fraud Buster, which combats app install fraud in real time to ensure higher lifetime value per user and increased return on advertising spending (ROAS).