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 ?
Patronis noted fraud is especially rampant after every hurricane, when "millions of dollars are stolen as crooks prey on Florida families in their time of need to make a quick buck."
2015 to 2016, with the rate of in-person card fraud decreasing notably and the rate of remote card fraud increasing significantly.
Fraud instigated by internal fraud actors is increasing rapidly, accounting for 48 per cent of economic crimes reported in the Middle East slightly below the global average of 52 per cent.
Credit unions and other financial institutions are using a wide variety of methods and processes to fight fraud. But according to the data, giving customers online information services was the second most effective risk-management method for stopping credit card fraud (blocking and reissuing breached cards ranked first); giving customers alerts via text, email or within applications ranked fourth, after outsourcing card fraud management.
In other words, there should be an appropriately low level of risk that a fraud which materially misstates the financial statements will not be detected.
Ratley, CFE, said that the support of organizations around the world helps make Fraud Week an effective tool in raising anti-fraud awareness.
"We are changing the way industry fraud is fought," said Sadra.
The fraud risk assessment should do all of the following EXCEPT:
The study detailed two of the most pernicious types of card fraud, application fraud and account takeover, each of which represents 20 percent of total fraud losses, according to study findings.
Here are some basic steps you can share with your clients that they can take to lessen their vulnerability to fraud:
ACFE Oman joins hundreds of organizations who have partnered with the ACFE, the world's largest anti-fraud organisation and premier provider of anti-fraud training and education, for the annual Fraud Week campaign.