Definition of Fraud

There is no single accepted definition of fraud.

It is impossible to provide a comprehensive definition of fraud. Indeed, it may be possible to distinguish between two general types of definition: a general broader one and a criminal narrower one. However, all definitions have one thing in common - an element of dishonesty or deceit.

There are many dictionary definitions of the word 'fraud', each is similar but not exactly the same.

Such expressions as:

·         Unfair advantage by unlawful or unfair means;

·         Knowingly making a false representation;

·         intentional deception resulting in injury to another person;

·         something intended to deceive; deliberate trickery intended to gain an advantage;

·         An intentional perversion of truth; deceitful practice or device resorted to with intent to deprive another of property or other right;

·         The intentional and successful employment of cunning, deception, collusion; or artifice used to cheat or deceive another person whereby that person acts upon it to the loss of his property and to his legal injury;

·         The act of leading a person to believe something which you know to be false in a situation where you know the person will rely on that thing to their detriment;

·         A deception, intended to wrongfully obtain money or property from the reliance of another on the deceptive statements or acts, believing them to be true;

·         The intentional perversion of the truth in order to mislead someone into parting with something of value;

Are used in a selection of sources for defining 'fraud'. All are similar, but not any two are the same.

From the point of view of the criminal law, fraud could be defined as criminal deception, being the use of false representations to obtain unfair advantage or to harm the interests of another.

To deceive is to induce someone to believe that a thing is true which is false, and which the person practising the deceit knows or believes to be false. To defraud is to deprive by deceit: it is by deceit to induce someone to act to his injury.

According to Stephen (vol.2)[1] there are two essential elements for fraud:

·         deceit or intention to deceive;

·         either actual injury or possible injury or an intent to expose some person either to actual injury or to a risk of possible injury by means of deceit.

There is an indication in the legislation as to the meaning of the word 'deception' in section

15(4) of the Theft Act 1968 which provides:

'deception' means any deception (whether deliberate or reckless) by words or conduct as to fact or as to law, including a deception as to the present intentions of the person using the deception or any other person

Putting it more simply, fraud includes any intentional or deliberate act to deprive another of property or money by guile, deception or other unfair means.