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In
law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment, is described by its boundari ...
, fraud is
intentional Intentions are mental states A mental state, or a mental property, is a state of mind of a person. Mental states comprise a diverse class including perception, pain experience, belief, desire, intention, emotion, and memory. There is controversy co ...
deception Deception or falsehood is an act or statement which misleads, hides the truth, or promotes a belief, concept, or idea that is not true. It is often done for personal gain or advantage. Deception can involve dissimulation, propaganda and sleight ...
to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate
civil law Civil law may refer to: * Civil law (common law) Civil law is a major branch of the law.Glanville Williams. ''Learning the Law''. Eleventh Edition. Stevens. 1982. p. 2. In common law legal systems such as England and Wales and the law of the United ...
(e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compensation) or
criminal law Criminal law is the body of law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environ ...
(e.g., 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. The purpose of fraud may be monetary gain or other benefits, for example by obtaining a passport, travel document, or driver's license, or
mortgage fraud A mortgage loan or simply mortgage () is a loan In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations etc. The recipient (i.e., the borrower) incurs a ...
, where the perpetrator may attempt to qualify for a mortgage by way of false statements. A
hoax A hoax is a falsehood deliberately fabricated to masquerade as the truth. It is distinguishable from errors in observation or judgment, rumor A rumour (British English), or rumor (American English; American and British English spelling diffe ...

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

In common law jurisdictions, as a civil wrong, fraud is a
tort A tort, in jurisdiction, is a (other than ) that causes a claimant to suffer loss or harm, resulting in for the person who commits the tortious act. It can include intentional infliction of emotional distress, negligence, financial losses, ...

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. Proving fraud in a court of law is often said to be difficult as the intention to defraud is the key element in question. As such, proving fraud comes with a "greater evidentiary burden than other civil claims." This difficulty is exacerbated by the fact that some jurisdictions require the victim to prove fraud by
clear and convincing evidence Burden of proof is a legal duty that encompasses two connected but separate ideas that apply for establishing the truth of facts in a trial before tribunals in the United States: the "burden of production" and the "burden of persuasion." In a lega ...
. The remedies for fraud may include
rescission Rescission is the noun form of the verb "to rescind." It may refer to: * Rescission (contract law) * Rescission bill, a procedure to rescind previously appropriated funding in the United States * A synonym for Repeal#Parliamentary procedure, repea ...
(i.e., reversal) of a fraudulently obtained agreement or transaction, the recovery of a monetary award to compensate for the harm caused,
punitive damages Punitive damages, or exemplary damages, are damages At common law In law, common law (also known as judicial precedent or judge-made law, or case law) is the body of law created by judges and similar quasi-judicial tribunals by virtue of being s ...
to punish or deter the misconduct, and possibly others. In cases of a fraudulently induced contract, fraud may serve as a
defense Defense or defence may refer to: Tactical, martial, and political acts or groups * Defense (military) A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. It is ty ...
in a
civil action A lawsuit is a proceeding by a party or parties against another in the civil Civil may refer to: *Civic virtue, or civility *Civil action, or lawsuit *Civil affairs *Civil and political rights *Civil disobedience *Civil engineering *Civil ...
for
breach of contract Breach of contract is a legal Law is a system of rules created and law enforcement, enforced through social or governmental institutions to regulate behavior,Robertson, ''Crimes against humanity'', 90. with its precise definition a matter of ...
or
specific performance Specific performance is an equitable remedyEquitable remedies are judicial remedies developed by courts of Equity (law), equity from about the time of Henry VIII of England, Henry VIII to provide more flexible responses to changing social conditions ...
of
contract A contract is a legally binding agreement that defines and governs the rights and duties between or among its parties Image:'Hip, Hip, Hurrah! Artist Festival at Skagen', by Peder Severin Krøyer (1888) Demisted with DXO PhotoLab Clearview ...

contract
. Similarly, fraud may serve as a basis for a court to invoke its
equitable jurisdiction In jurisdictions following the English common law system, equity is the body of law which was developed in the English Court of Chancery The Court of Chancery was a court of equity in England and Wales England and Wales () is a legal ju ...
.


As a criminal offence

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 Bank fraud is the use of potentially illegal means to obtain money, assets In financial accounting Financial accounting is the field of accounting Accounting or Accountancy is the measurement, processing, and communication of financial an ...
,
insurance fraud Insurance fraud is any act committed to fraud, defraud an insurance process. It occurs when a claimant attempts to obtain some benefit or advantage they are not entitled to, or when an insurer knowingly denies some benefit that is due. According ...
,
forgery Forgery is a white-collar crime The term "white-collar crime" refers to financially motivated, nonviolent or non directly violent crime In ordinary language, a crime is an unlawful act punishable by a state or other authority. Th ...
). 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.


By region


North America


Canada

Section 380(1) of the
Criminal Code A criminal code (or penal code) is a document that compiles all, or a significant amount of, a particular jurisdiction's criminal law Criminal law is the body of law that relates to crime. It proscribes conduct perceived as threatening, ha ...
provides the general definition for fraud in Canada: 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. 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. The
Supreme Court of Canada Supreme may refer to: * Supreme (brand), a clothing brand based in New York * Supreme (comics), a comic book superhero * Supreme (cookery), a term used in cookery * Supreme (film), ''Supreme'' (film), a 2016 Telugu film * Supreme (producer), hip-h ...

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. Deprivation of
confidential information Confidentiality involves a set of rules or a promise usually executed through confidentiality agreements that limits access or places restrictions on certain types of information Information can be thought of as the resolution of uncert ...
, in the nature of a
trade secret Trade secrets are a type of intellectual property that comprise formulas, best practice, practices, business process, processes, designs, legal instrument, instruments, patterns, or compilations of information that have inherent economic value be ...
or copyrighted material that has commercial value, has also been held to fall within the scope of the offence.


United States


=Criminal fraud

= The proof requirements for criminal fraud charges in the United States are essentially the same as the requirements for other crimes: guilt must be proved beyond a
reasonable doubt Beyond a reasonable doubt is a legal standard of proof required to validate a criminal conviction in most adversarial legal systems. It is a higher standard of proof than the balance of probabilities (commonly used in civil matters) and is usu ...
. Throughout the United States fraud charges can be misdemeanors or felonies depending on the amount of loss involved. High value fraud can also trigger additional penalties. For example, in California, losses of $500,000 or more will result in an extra two, three, or five years in prison in addition to the regular penalty for the fraud. The U.S. government's 2006 fraud review concluded that fraud is a significantly under-reported crime, and while various agencies and organizations were attempting to tackle the issue, greater co-operation was needed to achieve a real impact in the public sector. The scale of the problem pointed to the need for a small but high-powered body to bring together the numerous counter-fraud initiatives that existed.


= Civil fraud

= Although elements may vary by jurisdiction and the specific allegations made by a plaintiff who files a lawsuit that alleged fraud, typical elements of a fraud case in the United States are that: #Somebody misrepresents a material fact in order to obtain action or forbearance by another person; #The other person relies upon the misrepresentation; and #The other person suffers injury as a result of the act or forbearance taken in reliance upon the misrepresentation. To establish a civil claim of fraud, most jurisdictions in the United States require that each element of a fraud claim be pleaded with particularity and be proved by a
preponderance of the evidence Burden of proof is a legal duty that encompasses two connected but separate ideas that apply for establishing the truth of facts in a trial before tribunals in the United States: the "burden of production" and the "burden of persuasion." In a lega ...
, meaning that it is more likely than not that the fraud occurred. Some jurisdictions impose a higher evidentiary standard, such as Washington State's requirement that the elements of fraud be proved with clear, cogent, and convincing evidence (very probable evidence), or Pennsylvania's requirement that common law fraud be proved by clear and convincing evidence. The measure of damages in fraud cases is normally computed using one of two rules: #The "benefit of bargain" rule, which allows for recovery of damages in the amount of the difference between the value of the property had it been as represented and its actual value; #Out-of-pocket loss, which allows for the recovery of damages in the amount of the difference between the value of what was given and the value of what was received.
Special damages At common law In law, common law (also known as judicial precedent or judge-made law, or ) is the body of law created by judges and similar quasi-judicial by virtue of being stated in written opinions. ' is the most-used legal dictionary used ...
may be allowed if shown to have been proximately caused by defendant's fraud and the damage amounts are proved with specificity. Many jurisdictions permit a plaintiff in a fraud case to seek
punitive Punishment, commonly, is the imposition of an undesirable or unpleasant outcome upon a group or individual, meted out by an authority In the fields of sociology Sociology is the study of society, human social behaviour, patterns of soci ...
or exemplary damages.


Pacific Asia


China

Zhang Yingyu's story collection ''
The Book of Swindles ''The Book of Swindles'' (''Piàn jīng'' 騙經), also known by its longer title, ''A New Book for Foiling Swindlers, Based on Worldly Experience'' (''Jiānghú lìlǎn dùpiàn xīnshū'' 江湖歷覽杜騙新書), is said to be the first Chinese ...
'' (available here; ca. 1617) testifies to rampant commercial fraud, especially involving itinerant businessmen, in late Ming China. ''The Economist'', CNN, and other media outlets regularly report on incidents of fraud or bad faith in Chinese business and trade practices. ''Forbes'' cites cybercrime as a persistent and growing threat to Chinese consumers.


India

In India the criminal laws are enshrined in the
Indian Penal Code The Indian Penal Code (IPC) is the official criminal code of India. It is a comprehensive code intended to cover all substantive aspects of criminal law. The code was drafted on the recommendations of first law commission of India established in 1 ...
. It is supplemented by the
Criminal Procedure Code Criminal procedure is the adjudication process of the criminal law. While criminal procedure differs dramatically by jurisdiction, the process generally begins with a formal criminal charge with the person on trial either being free on bail or in ...
and
Indian Evidence Act The Indian Evidence Act, originally passed in India India (Hindi: ), officially the Republic of India (Hindi: ), is a country in South Asia. It is the List of countries and dependencies by population, second-most populous country, the Lis ...
.


Europe


United Kingdom

In 2016 the estimated value lost through fraud in the UK was £193 billion a year. In January 2018 the ''
Financial Times The ''Financial Times'' (''FT'') is a daily newspaper printed in broadsheet and published digitally that focuses on business and economic Current affairs (news format), current affairs. Based in London, England, the paper is owned by a Japanese ...
'' reported that the value of UK fraud hit a 15-year high of £2.11bn in 2017, according to a study. The article said that the accountancy firm BDO examined reported fraud cases worth more than £50,000 and found that the total number rose to 577 in 2017, compared with 212 in 2003. The study found that the average amount stolen in each incident rose to £3.66m, up from £1.5m in 2003. As at November 2017, fraud is the most common criminal offence in the UK according to a study by Crowe Clark Whitehill, Experian and the Centre for Counter Fraud Studies. The study suggests the UK loses over £190 billion per year to fraud. £190 billion is more than 9% of the UK's projected GDP for 2017 ($2,496 (£2,080) billion according to ''Statistics Times''). The estimate for fraud in the UK figure is more than the entire GDP of countries such as Romania, Qatar and Hungary. According to another review by the UK anti-fraud charity
Fraud Advisory Panel The Fraud Advisory Panel is a UK charitable organisation A charitable organization or charity is an organization whose primary objectives are philanthropy Philanthropy consists of "private initiatives, for the Public good (economics), public ...
(FAP), business fraud accounted for £144bn, while fraud against individuals was estimated at £9.7bn. The FAP has been particularly critical of the support available from the police to victims of fraud in the UK outside of London. Although victims of fraud are generally referred to the UK's national fraud and cyber crime reporting centre, Action Fraud, the FAP found that there was "little chance" that these crime reports would be followed up with any kind of substantive law enforcement action by UK authorities, according to the report. In July 2016, it was reported that fraudulent activity levels in the UK increased in the 10 years leading up to 2016 from £52 billion to £193 bn. This figure would be a conservative estimate, since as the former commissioner of the
City of London Police The City of London Police is the territorial police forceA territorial police force is a police The police are a Law enforcement organization, constituted body of Law enforcement officer, persons empowered by a State (polity), state, with th ...
, Adrian Leppard, has said, only 1 in 12 such crimes are actually reported. Donald Toon, director of the NCA's economic crime command, stated in July 2016: "The annual losses to the UK from fraud are estimated to be more than £190bn". Figures released in October 2015 from the Crime Survey of England and Wales found that there had been 5.1 million incidents of fraud in England and Wales in the previous year, affecting an estimated one in 12 adults and making it the most common form of crime. Also in July 2016, the
Office for National Statistics The Office for National Statistics (ONS; cy, Swyddfa Ystadegau Gwladol) is the executive office of the UK Statistics Authority cy, Y Bwrdd Ystadegau , seal = , logo = UK Statistics Authority logo.svg , formed = , jurisdiction = United Ki ...
(ONS) stated "Almost six million fraud and cyber crimes were committed last year in England and Wales and estimated there were two million computer misuse offences and 3.8 million fraud offences in the 12 months to the end of March 2016." Fraud affects one in ten people in the UK. According to the ONS, most fraud relates to bank account fraud. These figures are separate from the headline estimate that another 6.3 million crimes (distinct from fraud) were perpetrated in the UK against adults in the year to March 2016. Fraud was not included in a "Crime Harm Index" published by the
Office for National Statistics The Office for National Statistics (ONS; cy, Swyddfa Ystadegau Gwladol) is the executive office of the UK Statistics Authority cy, Y Bwrdd Ystadegau , seal = , logo = UK Statistics Authority logo.svg , formed = , jurisdiction = United Ki ...
in 2016. Michael Levi, professor of criminology at Cardiff University, remarked in August 2016 that it was "deeply regrettable" fraud is being left out of the first index despite being the most common crime reported to police in the UK. Levi said "If you've got some categories that are excluded, they are automatically left out of the police's priorities." The Chief of the National Audit Office (NAO), Sir Anyas Morse has also said "For too long, as a low-value but high-volume crime, online fraud has been overlooked by government, law enforcement and industry. It is now the most commonly experienced crime in England and Wales and demands an urgent response."


=England, Wales, and Northern Ireland

= Since 2007, fraud in
England and Wales England and Wales () is a legal jurisdiction covering England and Wales, two of the four countries of the United Kingdom, parts of the United Kingdom. England and Wales forms the constitutional successor to the former Kingdom of England and follows ...

England and Wales
and
Northern Ireland Northern Ireland ( ga, Tuaisceart Éireann ; sco, label=Ulster-ScotsUlster Scots, also known as Scotch-Irish, may refer to: * Ulster Scots people The Ulster Scots (Ulster-Scots The Ulster Scots (Ulster Scots dialects, Ulster- ...

Northern Ireland
has been covered by the
Fraud Act 2006 The Fraud Act 2006 (c 35) is an Act of the Parliament of the United Kingdom The Parliament of the United Kingdom is the of the , the and the . It alone possesses and thereby ultimate power over all other political bodies in the UK and ...
. The Act was given Royal Assent on 8 November 2006, and came into effect on 15 January 2007. The Act gives a statutory definition of the criminal offence of fraud, defining it in three classes—fraud by false representation, fraud by failing to disclose information, and fraud by abuse of position. It provides that a person found guilty of fraud is liable to a fine or imprisonment for up to twelve months on
summary conviction Summary may refer to: * Abstract (summary) An abstract is a brief summary of a research article, thesis A thesis or dissertation (abbreviated diss.) is a document submitted in support of candidature for an academic degree An academic ...
(six months in
Northern Ireland Northern Ireland ( ga, Tuaisceart Éireann ; sco, label=Ulster-ScotsUlster Scots, also known as Scotch-Irish, may refer to: * Ulster Scots people The Ulster Scots (Ulster-Scots The Ulster Scots (Ulster Scots dialects, Ulster- ...

Northern Ireland
), or a fine or imprisonment for up to ten years on conviction on
indictment An indictment ( ) is a criminal accusation that a person has committed a crime. In jurisdictions that use the concept of felony, felonies, the most serious criminal offence is a felony; jurisdictions that do not use the felonies concept often use th ...
. This Act largely replaces the laws relating to obtaining property by deception, obtaining a pecuniary advantage and other offences that were created under the
Theft Act 1978 The Theft Act 1978 (c 31) is an Act of the Parliament of the United Kingdom The Parliament of the United Kingdom is the of the , the and the . It alone possesses and thereby ultimate power over all other political bodies in the UK an ...
.


=Scotland

= In
Scots law Scots law () is the legal system The contemporary national legal systems are generally based on one of four basic systems A system is a group of interacting or interrelated elements that act according to a set of rules to form a unified ...
, fraud is covered under the common law and a number of statutory offences. The main fraud offences are common law fraud, uttering, embezzlement, and statutory fraud. The Fraud Act 2006 does not apply in Scotland.


=Governmental Organisations

= The Serious Fraud Office is an arm of the Government of the United Kingdom, accountable to the Attorney-General. The National Fraud Authority (NFA) was, until 2014, a government agency co-ordinating the counter-fraud response in the UK. Cifas is a British fraud prevention service, a not-for-profit membership organisation for all sectors that enables organisations to share and access fraud data using their databases. Cifas is dedicated to the prevention of fraud, including internal fraud by staff, and the identification of financial and related crime.


Cost

Participants of a 2010 survey by the
Association of Certified Fraud Examiners The Association of Certified Fraud Examiners (ACFE) is a professional organization A professional association (also called a professional body, professional organization, or professional society) seeks to further a particular profession A ...
estimated that the typical organization loses five percent of its annual revenue to fraud, with a median loss of $160,000. Fraud committed by owners and executives were more than nine times as costly as employee fraud. The industries most commonly affected are banking, manufacturing, and government.


Types of fraudulent acts

The falsification of documents, known as forgery, and counterfeiting are types of fraud involved in physical duplication or fabrication. The "theft" of one's personal information or identity, like one finding out another's social security number and then using it as identification, is a type of fraud. Fraud can be committed through and across many media including
mail The mail or post is a system for physically transporting postcard A postcard or post card is a piece of thick paper or thin Card stock, cardboard, typically rectangular, intended for writing and mailing without an envelope. Non-rectangular s ...
,
wire A wire is a single usually cylindrical A cylinder (from Greek Greek may refer to: Greece Anything of, from, or related to Greece Greece ( el, Ελλάδα, , ), officially the Hellenic Republic, is a country located in Southeast Euro ...
,
phone A telephone is a telecommunications device that permits two or more users to conduct a conversation when they are too far apart to be heard directly. A telephone converts sound, typically and most efficiently the human voice, into electronic ...
, and the
Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a ''internetworking, network of networks'' that consist ...

Internet
(
computer crime Cybercrime is a crime that involves a computer and a computer network, network.Moore, R. (2005) "Cyber crime: Investigating High-Technology Computer Crime," Cleveland, Mississippi: Anderson Publishing. The computer may have been used in the com ...
and
Internet fraud Internet fraud is a type of cybercrime fraud or deception which makes use of the Internet and could involve hiding of information or providing incorrect information for the purpose of tricking victims out of money, property, and inheritance. Inter ...
). Given the international nature of the web and ease with which users can hide their location, obstacles to checking identity and legitimacy online, and the variety of hacker techniques available to gain access to PII have all contributed to the very rapid growth of Internet fraud. In some countries, tax fraud is also prosecuted under false billing or tax forgery. There have also been fraudulent "discoveries", e.g.,
science Science () is a systematic enterprise that builds and organizes knowledge Knowledge is a familiarity or awareness, of someone or something, such as facts A fact is something that is truth, true. The usual test for a statement of ...
, where the appetite is for prestige rather than immediate monetary gain.


Detection

The detection of fraudulent activities on a large scale is possible with the harvesting of massive amounts of financial
data Data (; ) are individual facts A fact is something that is truth, true. The usual test for a statement of fact is verifiability—that is whether it can be demonstrated to correspond to experience. Standard reference works are often used ...
paired with
predictive analytics Predictive analytics encompasses a variety of statistical techniques from data mining, predictive modelling, and machine learning that analyze current and historical facts to make prediction Image:Old Farmer's Almanac 1793 cover.jpg, frame ...
or forensic analytics, the use of electronic data to reconstruct or detect financial fraud. Using computer-based analytic methods in particular allows for surfacing of errors, anomalies, inefficiencies, irregularities, and biases which often refer to fraudsters gravitating to certain dollar amounts to get past internal control thresholds. These high-level tests include tests related to Benford's Law and possibly also those statistics known as descriptive statistics. High-level tests are always followed by more focused tests to look for small samples of highly irregular transactions. The familiar methods of
correlation In statistics Statistics is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data Data (; ) are individual facts, statistics, or items of information, often numeric. In a m ...

correlation
and
time-series analysis In mathematics Mathematics (from Ancient Greek, Greek: ) includes the study of such topics as quantity (number theory), mathematical structure, structure (algebra), space (geometry), and calculus, change (mathematical analysis, analysis). It ...
can also be used to detect fraud and other irregularities.


Anti-fraud provisioning

Beyond laws that aim at prevention of fraud, there are also governmental and non-governmental organizations that aim to fight fraud. Between 1911 and 1933, 47 states adopted the so-called
Blue Sky Laws A blue sky law is a state law in the United States The United States of America (USA), commonly known as the United States (U.S. or US), or America, is a country Contiguous United States, primarily located in North America. It consists o ...
status. These laws were enacted and enforced at the state level and regulated the offering and sale of
securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
to protect the public from fraud. Though the specific provisions of these laws varied among states, they all required the registration of all securities offerings and sales, as well as of every U.S.
stockbroker A stockbroker is a regulated broker A broker is a person or firm who arranges transactions between a Purchasing, buyer and a sales, seller for a commission (remuneration), commission when the deal is executed. A broker who also acts as a seller ...

stockbroker
and brokerage firm. However, these Blue Sky laws were generally found to be ineffective. To increase public trust in the capital markets the
President of the United States The president of the United States (POTUS) is the head of state and head of government of the United States of America. The president directs the Federal government of the United States#Executive branch, executive branch of the Federal gover ...

President of the United States
,
Franklin D. Roosevelt Franklin Delano Roosevelt (, ; January 30, 1882April 12, 1945), often referred to by his initials FDR, was an American politician who served as the 32nd president of the United States from 1933 until his death in 1945. A member of the De ...

Franklin D. Roosevelt
, established the
U.S. Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is a large independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929 The Wall Street Crash of 1929, also known as the Great Crash ...
(SEC). The main reason for the creation of the SEC was to regulate the
stock market A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange, as w ...

stock market
and prevent corporate abuses relating to the offering and sale of securities and corporate reporting. The SEC was given the power to license and regulate stock exchanges, the companies whose securities traded on them, and the brokers and dealers who conducted the trading.


Further reading

Apart from fraud, there are several related categories of intentional
deception Deception or falsehood is an act or statement which misleads, hides the truth, or promotes a belief, concept, or idea that is not true. It is often done for personal gain or advantage. Deception can involve dissimulation, propaganda and sleight ...
s that may or may not include the elements of personal gain or damage to another individual: *
Obstruction of justice Obstruction of justice, in United States jurisdiction Jurisdiction (from Latin ''Wikt:ius#Latin, juris'' 'law' + ''Wikt:dictio, dictio'' 'declaration') is the practical authority granted to a legal body to administer justice, as defined by the ...
* which criminalizes false representation of having been awarded any decoration or medal authorized by Congress for the Armed Forces of the United States


See also

*
Bait-and-switch Bait-and-switch is a form of fraud In law, fraud is intent (law), intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate Civil law (common law), civil law (e.g., a fraud victim may s ...
* Caper stories (such as ''
The Sting ''The Sting'' is a 1973 American Heist film, caper film set in September 1936, involving Long con, a complicated plot by two professional Confidence trick, grifters (Paul Newman and Robert Redford) to Confidence trick, con a mob boss (Robert Sha ...
'') * Contract fraud *
Corruption Corruption is a form of dishonesty Dishonesty is to act without honesty. It is used to describe a lack of probity, cheating, lying, or deliberately withholding information, or being deliberately deceptive or a lack in integrity, knavishness, ...
* Cramming (fraud) *
Creative accounting Creative accounting is a euphemism referring to accounting Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic entity, economic entities such as businesses and ...
*
Crimestoppers Crime Stoppers or Crimestoppers is a community program that helps people to provide anonymous information about criminal activity. Often managed by non-profit groups or the police, it operates separately from the emergency telephone number sys ...
*
Deception Deception or falsehood is an act or statement which misleads, hides the truth, or promotes a belief, concept, or idea that is not true. It is often done for personal gain or advantage. Deception can involve dissimulation, propaganda and sleight ...
*
Electoral fraud Electoral fraud, sometimes referred to as election fraud, election manipulation, voter fraud or vote rigging, involves illegal interference with the process of an election An election is a formal group decision-making process by which a popul ...
*
False Claims ActThe False Claims Act (FCA), also called the "Lincoln Law", is an American federal law that imposes liability on persons and companies (typically federal contractors) who defraud governmental programs. It is the federal Government's primary litigatio ...
*
Federal Bureau of Investigation The Federal Bureau of Investigation (FBI) is the domestic intelligence Intelligence has been defined in many ways: the capacity for abstraction Abstraction in its main sense is a conceptual process where general rules and concept Conce ...

Federal Bureau of Investigation
(FBI) *
Financial crimes Financial crime is crime In ordinary language, a crime is an unlawful act punishable by a state or other authority. The term ''crime'' does not, in modern criminal law, have any simple and universally accepted definition,Farmer, Lindsay: " ...
*
Forgery Forgery is a white-collar crime The term "white-collar crime" refers to financially motivated, nonviolent or non directly violent crime In ordinary language, a crime is an unlawful act punishable by a state or other authority. Th ...
*
Fortune telling fraud Fortune may refer to: General * Fortuna or Fortune, the Roman goddess of luck * Luck, a chance happening, or that which happens beyond a person's controls * Wealth, an abundance of items of economic value * Fortune, a prediction made in fortune-te ...
*
Fraud deterrenceFraud deterrence has gained public recognition and spotlight since the 2002 inception of the Sarbanes-Oxley Act. Of the many reforms enacted through Sarbanes-Oxley, one major goal was to regain public confidence in the reliability of financial marke ...
* Fraud in the factum * Fraud in parapsychology *
Fraud Squad (UK)A Fraud squad is a police department which investigates fraud and other economic crimes. The largest Fraud Squad in the United Kingdom is run by the City of London Police who are responsible for policing London's and the UK's main financial hub. The ...
* Friendly fraud *
Front running Front running, also known as tailgating, is the prohibited practice of entering into an equity (stock Stock (also capital stock) is all of the shares into which ownership of a corporation A corporation is an organization—usually a ...
* Geneivat da'at *
Great Stock Exchange Fraud of 1814 The Great Fraud of Cowley was a hoax or fraud In law, fraud is intent (law), intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate Civil law (common law), civil law (e.g., a fraud ...
*
Guinness share-trading fraudThe Guinness share-trading fraud was a major business scandal of the 1980s. It involved the manipulation of the London stock market A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also c ...
, famous British business scandal of the 1980s *
Hoax A hoax is a falsehood deliberately fabricated to masquerade as the truth. It is distinguishable from errors in observation or judgment, rumor A rumour (British English), or rumor (American English; American and British English spelling diffe ...

Hoax
*
Identity management Identity management (IdM), also known as identity and access management (IAM or IdAM), is a framework of policies and technologies to ensure that the right users (in an enterprise) have the appropriate access to technology resources. IdM systems f ...
*
Impersonator An impersonator is someone who imitates or copies the behavior or actions of another. There are many reasons for impersonating someone: *Entertainment: An entertainer impersonates a celebrity, generally for entertainment, and makes fun of t ...
*
Internal Revenue Service The Internal Revenue Service (IRS) is the revenue service A revenue service, revenue agency or taxation authority is a government agency responsible for the intake of government revenue, including taxes and sometimes non-tax revenue. ...
(IRS) *
Internet fraud Internet fraud is a type of cybercrime fraud or deception which makes use of the Internet and could involve hiding of information or providing incorrect information for the purpose of tricking victims out of money, property, and inheritance. Inter ...
*
Interpol The International Criminal Police Organization (ICPO; french: link=no, Organisation internationale de police criminelle), commonly known as Interpol ( , ), is an that facilitates worldwide police cooperation and crime control. Headquartere ...

Interpol
* Journalism fraud *
Mail and wire fraud Mail fraud and wire fraud are Federal crime in the United States, federal crimes in the United States that involve mailing or electronically transmitting something associated with fraud. Jurisdiction is claimed by the federal government if the il ...
*
Money laundering Money laundering is the process of changing large amounts of money obtained from crimes, such as drug trafficking Uncoated tablets, consisting of about 90% acetylsalicylic acid, along with a minor amount of inert fillers and binders. Aspi ...
* The National Council Against Health Fraud *
Organized crime Organized crime is a category of transnational, national, or local groupings of highly centralized enterprises run by criminals to engage in illegal activity, most commonly for profit. While organized crime is generally thought of as a form of i ...
*
Phishing Phishing is a type of social engineering where an attacker sends a fraudulent (e.g., spoofed, fake, or otherwise deceptive) message designed to trick a human victim into revealing sensitive information Information sensitivity is the control ...

Phishing
, attempt to fraudulently acquire sensitive information *
Placebo A placebo ( ) is a substance or treatment which is designed to have no therapeutic value. Common placebos include inert tablets (like sugar pills), inert injections (like saline), sham surgery, and other procedures. In general, placebos can af ...

Placebo
*
Police impersonationPolice impersonation is the act of falsely portraying oneself as a member of the police The police are a Law enforcement organization, constituted body of Law enforcement officer, persons empowered by a State (polity), state, with the aim to law ...
*
Political corruption Political corruption is the use of powers by government officials or their network contacts for illegitimate private gain. Forms of corruption vary, but can include bribery, lobbying, extortion, cronyism, nepotism, parochialism, patronage, infl ...
* Push payment fraud *
Quackery Quackery, often synonymous with health fraud, is the promotion of fraud In law, fraud is intentional deception Deception or falsehood is an act or statement which misleads, hides the truth, or promotes a belief, concept, or idea that is ...
* Quatloos.com *
Racketeer Influenced and Corrupt Organizations Act The Racketeer Influenced and Corrupt Organizations (RICO) Act is a United States federal law The law of the United States comprises many levels of codified and uncodified forms of law, of which the most important is the nation's Constitu ...
(RICO) * SAS 99 *
Scam A confidence trick is an attempt to defraud In law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and ...

Scam
* Secret profits *
Shell company A shell corporation is a company A company, abbreviated as co., is a legal entity In law, a legal person is any person A person (plural people or persons) is a being that has certain capacities or attributes such as reason, morali ...
* Swampland in Florida * Tobashi scheme, concealing financial losses *
U.S. Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is a large independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929 The Wall Street Crash of 1929, also known as the Great Crash ...
(SEC) *
United States Postal Inspection Service The United States Postal Inspection Service (USPIS), or the Postal Inspectors, is the law enforcement arm of the United States Postal Service The United States Postal Service (USPS; also known as the Post Office, U.S. Mail, or Postal Service ...
*
United States Secret Service The United States Secret Service (USSS or Secret Service) is a federal law enforcement agency under the Department of Homeland Security charged with conducting criminal investigations and protecting U.S. political leaders, their families, and v ...
*
White-collar crime The term "white-collar crime" refers to financially motivated, nonviolent or non directly violent crime In ordinary language, a crime is an unlawful act punishable by a state or other authority. The term ''crime'' does not, in modern cr ...
*
Wood laundering Illegal logging is the harvest, transportation, purchase or sale of timber Lumber, also known as timber, is a type of wood Wood is a porous and fibrous structural tissue found in the Plant stem, stems and roots of trees and other wo ...


References


Further reading

* Edward J. Balleisen ''Fraud: An American History from Barnum to Madoff''. (2017). Princeton University Press. *
Fred Cohen Frederick B. Cohen (born 1956) is an American computer scientist and best known as the inventor of computer virus defense techniques. He gave the definition of "computer virus". Cohen is best known for his pioneering work on computer viruses, the ...
''Frauds, Spies, and Lies – and How to Defeat Them''. (2006). ASP Press. * Green, Stuart P. ''Lying, Cheating, and Stealing: A Moral Theory of White Collar Crime''. Oxford University Press, 2006.
Review Fraud – Alex Copola
Podgor, Ellen S. ''Criminal Fraud'', (1999) Vol, 48, No. 4 American Law Review 1.
The Nature, Extent and Economic Impact of Fraud in the UK. February, 2007.


by Eamon Dillon, published September 2008 by Merlin Publishing * Zhang, Yingyu.
The Book of Swindles: Selections from a Late Ming Collection
'. Columbia University Press, 2017.


External links

*
Association of Certified Fraud Examiners

Immigration Marriage Fraud Amendments of 1986



U.S. Department of Justice Fraud Section
{{Authority control Crimes Deception Tort law Property crimes Financial crimes