What Is Fraud?
In the broadest sense, fraud can encompass any crime for gain that uses deception as its principal modus operandus. More specifically, fraud is defined by Black’s Law Dictionary as:A knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment.Consequently, fraud includes any intentional or deliberate act to deprive another of property or money by guile, deception, or other unfair means.
Types of Fraud
Fraud against a company can be committed either internally by employees, managers, officers, or owners of the company, or externally by customers, vendors, and other parties. Other schemes defraud individuals, rather than organizations.