Fraud

In law, fraud is deliberate deception to secure unfair or unlawful gain, or to deprive a victim
of a legal right. Fraud itself can be a civil wrong (i.e., a fraud victim may sue the fraud
perpetrator to avoid the fraud or recover monetary compensation), a criminal wrong (i.e., a
fraud perpetrator may be prosecuted and imprisoned by governmental authorities), or it may
cause no loss of money, property or legal right but still be an element of another civil or
criminal wrong.[1] The purpose of fraud may be monetary gain or other benefits, such as
obtaining a passport or travel document, driver's license or qualifying for a mortgage by way
of false statements.[2]

A hoax is a distinct concept that involves deliberate deception without the intention of gain or
of materially damaging or depriving a victim.

As a civil wrong Edit

In common law jurisdictions, as a civil wrong, fraud is a tort. While the precise definitions and
requirements of proof vary among jurisdictions, the requisite elements of fraud as a tort
generally are the intentional misrepresentation or concealment of an important fact upon
which the victim is meant to rely, and in fact does rely, to the harm of the victim.[3] Proving
fraud in a court of law is often said to be difficult.[citation needed] That difficulty is found, for
instance, in that each and every one of the elements of fraud must be proven, that the
elements include proving the states of mind of the perpetrator and the victim, and that some
jurisdictions require the victim to prove fraud by clear and convincing evidence.[citation
needed]

The remedies for fraud may include rescission (i.e., reversal) of a fraudulently obtained
agreement or transaction, the recovery of a monetary award to compensate for the harm
caused, punitive damages to punish or deter the misconduct, and possibly others.[citation
needed]

In cases of a fraudulently induced contract, fraud may serve as a defense in a civil action for
breach of contract or specific performance of contract.

Fraud may serve as a basis for a court to invoke its equitable jurisdiction.

As a criminal offence Edit

In common law jurisdictions, as a criminal offence, fraud takes many different forms, some
general (e.g., theft by false pretense) and some specific to particular categories of victims or
misconduct (e.g., bank fraud, insurance fraud, forgery). The elements of fraud as a crime
similarly vary. The requisite elements of perhaps the most general form of criminal fraud,
theft by false pretense, are the intentional deception of a victim by false representation or
pretense with the intent of persuading the victim to part with property and with the victim
parting with property in reliance on the representation or pretense and with the perpetrator
intending to keep the property from the victim.[4]

By region Edit

North America Edit

Canada Edit
Section 380(1) of the Criminal Code provides the general definition for fraud in Canada:

380. (1) Every one who, by deceit, falsehood or other fraudulent means, whether or not it is
a false pretence within the meaning of this Act, defrauds the public or any person, whether
ascertained or not, of any property, money or valuable security or any service,

(a) is guilty of an indictable offence and liable to a term of imprisonment not exceeding
fourteen years, where the subject-matter of the offence is a testamentary instrument or the
value of the subject-matter of the offence exceeds five thousand dollars; or
(b) is guilty
(i) of an indictable offence and is liable to imprisonment for a term not exceeding two years,
or
(ii) of an offence punishable on summary conviction, where the value of the subject-matter of
the offence does not exceed five thousand dollars.[5]
In addition to the penalties outlined above, the court can also issue a prohibition order under
s. 380.2 (preventing a person from "seeking, obtaining or continuing any employment, or
becoming or being a volunteer in any capacity, that involves having authority over the real
property, money or valuable security of another person"). It can also make a restitution order
under s. 380.3.[6]

The Canadian courts have held that the offence consists of two distinct elements:

A prohibited act of deceit, falsehood or other fraudulent means. In the absence of deceit or
falsehood, the courts will look objectively for a "dishonest act"; and
The deprivation must be caused by the prohibited act, and deprivation must relate to
property, money, valuable security, or any service.[7]
The Supreme Court of Canada has held that deprivation is satisfied on proof of detriment,
prejudice or risk of prejudice; it is not essential that there be actual loss.[8] Deprivation of
confidential information, in the nature of a trade secret or copyrighted material that has
commercial value, has also been held to fall within the scope of the offence.[9]