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Fraud

A term that covers several types of illegal acts. Generally speaking, fraud is the commission of an act that is designed to gain advantage or benefit at another individual's expense. Fraud is committed by a false representation of a fact that is aimed to deceive an individual and make him/her take action against their self-interest.

Deception is not the only element of fraud; there are five elements that are used to claim that an individual has committed fraud:

• The false representation of a material fact

• The knowledge that the statement was false

• Intent to deceive the victim

• A victim's reliance on the false statement

• Resultant harm

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