In law, fraud is a deliberate fraud to secure unfair or unlawful benefits, or to remove victims from legal rights. The fraud itself can be a civil one (that is, a fraud victim may prosecute fraudsters to avoid fraud or restore monetary compensation), wrong crimes (ie, fraud perpetrators may be prosecuted and imprisoned by government authorities), or may not cause money losses, property rights or legal rights but still an element of civil or other criminal error. The purpose of fraud can be either monetary gains or other benefits, such as getting a passport or travel document, driving license or qualifying for a mortgage by means of a false statement.
Deceptions are a different concept involving intentional fraud without the intention of obtaining or materially destroying or robbing a victim.
Video Fraud
As a civil wrong
In the jurisdiction of common law, as a civil fault, fraud is a mistake. Although the exact definition and requirements of proof vary among jurisdictions, the necessary elements of fraud as a mistake are generally deliberate deliberations or concealment of important facts that the victim relies upon, and in fact are dependent on the danger of the victim. Proving fraud in court is often difficult. The difficulty is found, for example, that each and every element of fraud must be proved, that elements including prove the perpetrators and victims' minds, and that some jurisdictions require victims to prove fraud by clear and convincing evidence.
Drugs for fraud can include cancellations (ie, inversions) of fraudulently obtained deals or transactions, monetary rewards recovery to compensate for losses incurred, punitive or impaired damages, and possibly others.
In the case of fraudulently imposed contracts, fraud may serve as a defense in civil action for breach of contract or performance of a particular contract.
Fraud can serve as a basis for a court to apply its fair jurisdiction.
Maps Fraud
As a criminal act
In the jurisdiction of common law, as a criminal offense, fraud takes many different forms, some common (eg, theft with fake pretenses) and some specifically for certain categories of victims or offenses (eg, bank fraud, insurance fraud, forgery). The elements of deception as a crime also vary. The necessary elements may be the most common form of criminal fraud, theft with fake pretenses, is the deliberate fraud of a victim by false representation or pretense with the intention of persuading the victim to part with the property and with the victim parting with the property in reliance on representation or pretense and with the perpetrator intending to preserve the property of the victim.
By region
North America
Canada
Section 380 (1) of the Criminal Code provides a common definition for fraud in Canada:
380 . (1) Anyone who, by deceit, lie or other fraudulent means, whether a fake pretense in the meaning of this Act, deceives the public or anyone, whether ascertained or not, of any property, money or valuable any. security or any service,
- (a) guilty of an alleged offense and may be subject to imprisonment of not more than fourteen years, in which the principal of the offense is the testing instrument or the value of the offense exceeding five thousand dollars; or
- (b) guilty
- (i) of the alleged and criminal offense for a period of not more than two years, or
- (ii) of the offense which may be sentenced to summary, where the principal value of the violation does not exceed five thousand dollars.
In addition to the punishment described above, the court may also issue a banning order under s. 380.2 (prevents anyone from "seeking, obtaining or continuing any work, or being or volunteering in any capacity, involving having authority over the true property, money or security of others"). It can also create a restitution command under s. 380.3.
The Canadian Court has stated that the offense consists of two distinct elements:
-
- Prohibited fraudulent actions, lies, or other means of fraud. In the absence of fraud or falsehood, the court will objectively seek "dishonest acts"; and
- Deprivation must be caused by prohibited conduct, and deprivation must relate to any valuable property, money, security, or service.
The Supreme Court of Canada has stated that the plunder is fulfilled on evidence of loss, prejudice or risk of prejudice; it does not matter that there is a real loss. Confiscation of confidential information, in the nature of trade secrets or copyrighted material of commercial value, has also been withheld within the scope of the infringement.
United States
Pidana kriminal
The requirement of evidence for allegations of criminal fraud in the United States is essentially the same as the requirement for other crimes: guilt should be proven beyond a reasonable doubt. The entire cost of United States fraud can be either a minor offense or a serious crime depending on the amount of losses involved. High value fraud can also include additional penalties. For example, in California a loss of $ 500,000 or more would result in an additional two, three, or five years in jail other than a regular penalty for fraud.
A 2006 US government fraud review concluded that fraud is a crime that is significantly underreported, and while various institutions and organizations are trying to address this issue, greater cooperation is needed to achieve real public sector impact. The problem scale shows the need for a small but powerful body to unify the various counter-fraud initiatives available.
According to Bloomberg, the rate of auto loan application scams in the United States has steadily increased over the past few years. This type of fraud is expected to double from about $ 2-3 billion in 2015 to $ 4-6 billion by 2017.
Civil fraud
Although the elements may differ according to the jurisdiction and specific allegations made by the plaintiff who filed the alleged fraud suit, the typical element of a fraudulent case in the United States is that:
- A person misrepresents material facts to gain action or patience by others;
- Others depend on misinterpretations; and
- Others suffer injuries as a result of actions or patience taken by relying erroneously.
To establish civil claims for fraud, most jurisdictions in the United States require that any element of fraudulent claims invoke specificity and be proven with more evidence, which means that it is more likely than not that fraud occurs. Some jurisdictions set higher standards of evidence, such as the requirements of the Washington State that the elements of cheating are evidenced by clear, convincing and convincing evidence (the most probable evidence), or the Pennsylvania requirement that general legal deception is evidenced by clear and convincing evidence.
The size of the damage in the case of fraud is usually calculated using one of two rules:
- The "benefit from bargaining" rule, which enables recovery of damage in the amount of the difference between the value of the property in case it is represented and the true value;
- Loss of allowance, which allows recovery of damage in the amount of difference between the value of what is given and the value of what is received.
Special damages may be permitted if proven to have been caused by the defendant's fraud and the amount of damage evidenced by specificity.
Many jurisdictions allow plaintiffs in cases of fraud to seek punitive or exemplary damages.
Pacific Asia
China
The collection of Zhang Yingyu's The Book of Swindles (available here, ca. 1617) testifies to the rampant commercial fraud, especially those involving mobile entrepreneurs, in late Ming China. The Journal of Science reports in 2017 that cheating is widespread in Chinese academics, resulting in many articles retracting and endangering China's international prestige. The Economist , CNN, and other media outlets regularly report fraudulent or bad faith incidents in Chinese business and trade practices. Forbes cited cybercrime as an ongoing and growing threat on Chinese consumers.
Europe
United Kingdom
By 2016, the estimated value lost through fraud in the UK is Ã, Â £ 193 billion per year.
In January 2018, the Financial Times reported that the value of UK fraud reached its highest in 15 years Ã, Â £ 2.11bn by 2017, according to a study. The article said that the BDO accounting firm examined reported fraud cases worth over Ã, Â £ 50,000 and found that the total amount increased to 577 by 2017, compared to 212 in 2003. The study found that the average amount stolen in each incident rose to Ã, £ 3.66 million, up from Ã, Â £ 1.5 million in 2003.
As of November 2017 Fraud is the most common criminal offense in the UK according to a study by Crowe Clark Whitehill, Experian and Counter Fraud Studies Center. This study shows Britain losing more than Ã, Â £ 190 billion per year for fraud. Ã, Â £ 190 billion more than 9% of the UK projected GDP for 2017 ($ 2,496 (Ã, Â £ 2,080) billion according to Statistics Times). Estimates for fraud in UK figures are more than all GDP countries like Romania, Qatar and Hungary.
According to another review by the UK anti-fraud charity Fraud Panel Advisor (FAP), business scams accounted for £ 144bn, while fraud against individuals was estimated at £ 9.7bn. The FAP has been very critical of the support available from police to victims of fraud in Britain outside London. Although fraud victims generally refer to the UK cyber crime and cyber crime reporting center in the UK, Fraud Action, FAP found that "little chance" that this criminal report will be followed up by substantive law enforcement action by British authorities. , according to the report.
In July 2016 it was reported that the level of fraudulent activity in the UK increased in the 10 years to 2016 from Ã, Â £ 52 billion to Ã, £ 193bn. This figure will be a conservative estimate, since as a former London City Police Commissioner Adrian Leppard says only 1 in 12 such crimes are actually reported. Donald Toon, NCA's director of economic crime command, declared in July 2016: "The annual loss to Britain from fraud is estimated to be over Ã, Â £ 190bn". Figures released in October 2015 from the British and Wales Crime Survey found that there were 5.1 million incidents of fraud in England and Wales the previous year, affecting one in 12 adults and making it the most common form of crime.
Also in July 2016, the Office for National Statistics (ONS) stated "Nearly six million frauds and cybercrimes were committed last year in England and Wales and estimated there were two million misuses of computer abuse and 3.8 million fraud violations in the 12 months to the end of March 2016. "Fraud affects one in ten people in the UK. According to ONS most of the scams are linked to bank account fraud. These figures are separate from the main estimates that there are 6.3 million other crimes (different from fraud) committed in Britain against adults this year through March 2016.
Fraud is not included in the "Crime Harm Index" published by the Office of National Statistics in 2016. Michael Levi, professor of criminology at Cardiff University, said in August 2016 that it was a 'deeply regrettable' fraud left out of the first index despite most crimes commonly reported to police in the UK. Levi says 'If you have some excluded category, they are automatically left out of police priority.' Sir Anyas Morse, the head of the National Audit Office (NAO) has also said, "Too long, as low-value, high-value crime, online fraud has been ignored by governments, law enforcement and industry, now the most common crime in England and Wales and demanding an urgent response. "
England, Wales and Northern Ireland
Since 2007, fraud in England and Wales and Northern Ireland has been covered by the 2006 Fraud Act. The law was granted Royal Assent on November 8, 2006, and entered into force on 15 January 2007.
The law provides a legal definition of a fraud criminal offense, defines it in three classes - fraud by false representations, fraud by not disclosing information, and fraud by abuse of position. It states that a person found guilty of fraud may be subject to fines or imprisonment for up to twelve months with a guilty verdict (six months in Northern Ireland), or a fine of up to ten years in jail or indictment on charges of indictment. This law largely supersedes legislation relating to obtaining property by fraud, obtaining financial gain and other violations created under the 1978 Theft Act.
Scotland
In Scottish law, fraud is covered under general law and a number of lawlessness. The main fraud violation is general legal fraud, denial, embezzlement, and fraud by law. The Fraud Act 2006 does not apply in Scotland.
Serious Deception Office
The Office of Serious Scams (United Kingdom) is part of the Government of the United Kingdom, which is responsible to the Attorney General.
National Fraud Authority
The National Fraud Authority (NFA), until 2014, is a government agency that coordinates counter-fraud responses in the UK.
Cifas
Cifas is a UK fraud prevention service, a nonprofit membership organization for all sectors that allows organizations to share and access fraudulent data using their database. Cifas is dedicated to fraud prevention, including internal fraud by staff, and the identification of financial and related crimes.
Cost
Typical organizations lose five percent of their annual revenue for fraud, with an average loss of $ 160,000. Frauds made by owners and executives are more than nine times more expensive than employee scams. The most affected industries are banking, manufacturing, and government.
Type of fraud action
Falsification of documents, forgery or counterfeiting is a type of fraud. The theft of a person's personal information, such as Social Security number, or identity is a type of fraud. Fraud can be done through many media, including letters, wires, telephones, and the Internet (computer crime and internet fraud). The international dimensions of the web and the ease with which users can hide their location, the difficulty of checking identity and online legitimacy, and the simplicity that can redirect hackers to dishonest sites and steal credit card details have all contributed to the rapid growth of Internet Fraud. In some countries, tax fraud is also charged with fraudulent billing or tax forgery. There is also a "discovery" fraud, for example, in science, to gain prestige rather than direct monetary gain.
Anti-fraud movement
Outside laws aimed at preventing fraud, there are also government and non-governmental organizations that aim to combat fraud. Between 1911 and 1933, 47 countries adopted the so-called Blue Sky Law status. This law is enacted and enforced at the state level and is governed by the supply and sale of securities to protect the public from fraud. Although the specific provisions of this law vary between states, they all require registration of all securities offerings and sales, as well as any US stockbrokers and stockbrokers. However, Blue Sky law is generally found to be ineffective. To increase public confidence in the capital market, President of the United States, Franklin D. Roosevelt, established the US Securities and Exchange Commission (SEC). The main reason for making the SEC is to regulate the stock market and prevent breaches of companies related to the offering and selling of corporate securities and reporting. The SEC is authorized to license and regulate the stock market, the companies whose securities are traded on them, and the brokers and dealers who trade.
Detect
To detect fraudulent activity on a large scale, it is necessary to use large-scale online data analysis, especially predictive analytics or forensic analysis. Forensic analytics is the use of electronic data to reconstruct or detect financial fraud. The steps in this process are data collection, data preparation, data analysis, and report preparation and possible presentation of results. Using computer-based analytic methods Nigrini's broader goal is to detect cheating, error, anomaly, inefficiency, and bias that refers to people interested in a certain dollar amount to cross the internal control threshold.
In addition to fraud, there are some deliberate fraud-related categories that may or may not include elements of personal gain or damage to other individuals:
- Obstruction of justice
- 18 U.S.C.Ã,§§ 704 which criminalizes the misrepresentation because it has been given any decorations or medals authorized by Congress for the United States Armed Forces
See also
References
Further reading
- Edward J. Balleisen Fraud: American History from Barnum to Madoff . ISBNÃ, 9780691164557 (2017). Princeton University Press.
- Fred Cohen Scams, Spies, and Lies - and How to Beat Them . ISBNÃ, 1-878109-36-7 (2006). ASP Press.
- Green, Stuart P. Lying, Cheating, and Steal: The Moral Theory of White Collar | . Oxford University Press, 2006. ISBNÃ, 978-0199225804
- Review Fraud - Alex Copola Podgor, Ellen S. Crime Fraud , (1999) Vol, 48, No. 4 American Law Review 1.
- The Widespread, Natural, and Economic Impacts of Fraud in the UK. February 2007.
- The Fraudsters - How Weapon Artists Steal Your Money (ISBN 978-1-903582-82-4) by Eamon Dillon, published September 2008 by Merlin Publishing
- Zhang, Yingyu. Book of Fraudsters: Choice of the Ming Collection Too Late . Columbia University Press, 2017. ISBNÃ, 9780231178631
External links
- The dictionary definition of cheating in Wiktionary
- Fraud Certified Tester Association
- Immigration Marriage Deception Amendment 1986
- FBI home page for fraud
- US. Justice Department Department of Justice
Source of the article : Wikipedia
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