Editing Fraud (section)

== Terminology ==

Fraud can be defined as either a [[civil wrong]] or a [[criminal act]]. For civil fraud, a government agency or person or entity harmed by fraud may bring litigation to stop the fraud, seek monetary damages, or both. For criminal fraud, a person may be prosecuted for the fraud and potentially face fines, incarceration, or both.<ref>{{Cite book |last=Fisher |first=Jonathan |url=https://china.elgaronline.com/view/edcoll/9781783475780/9781783475780.xml |title=Research Handbook on International Financial Crime |date=27 November 2015 |publisher=Edward Elgar Publishing |isbn=978-1-78347-579-7 |editor-last=Rider |editor-first=Barry |pages=315–327 |chapter=Fraud in civil and criminal law |doi=10.4337/9781783475797}}</ref>

=== Civil law ===
In common law jurisdictions, as a civil wrong, fraud is considered a [[tort]].<ref>{{Cite journal |last=Hazel |first=Robert A |date=2024 |title=Asymmetric Error Costs in Civil Law |url=https://law.und.edu/_files/docs/ndlr/pdf/issues/99/2/99ndlr211.pdf |journal=North Dakota Law Review |volume=99 |issue=2 |pages=211–252 |via=University of North Dakota School of Law}}</ref><ref>{{Cite journal |last=Hoyano |first=Laura Ch |date=1 September 1996 |title=Lies, Recklessness and Deception: Disentangling Dishonesty in Civil Fraud |url=https://cbr.cba.org/index.php/cbr/article/view/3721 |journal=The Canadian Bar Review |language=en |volume=75 |issue=3 |pages=474–502 |issn=0008-3003}}</ref> 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 detriment of the victim.<ref>{{cite web |url=http://www.justia.com/trials-litigation/docs/caci/1900/1900.html |title=California Civil Jury Instructions: 1900. Intentional Misrepresentation |publisher=Judicial Council of California |access-date=27 December 2013 |archive-date=28 December 2013 |archive-url=https://web.archive.org/web/20131228102855/http://www.justia.com/trials-litigation/docs/caci/1900/1900.html |url-status=live }}</ref> Proving fraud in a court of law is often said to be difficult as the intention to defraud is the key element in question.<ref>{{Cite web|title=The Difficulty of Proving Financial Crimes|url=https://dealbook.nytimes.com/2010/12/13/the-difficulty-of-proving-financial-crimes/|last=Henning|first=Peter J.|date=13 December 2020|website=DealBook|language=en|access-date=23 May 2020|archive-date=1 August 2020|archive-url=https://web.archive.org/web/20200801155236/https://dealbook.nytimes.com/2010/12/13/the-difficulty-of-proving-financial-crimes/|url-status=live}}</ref> 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]].<ref>{{Cite web|title=Fraud Litigation in Pennsylvania|url=https://www.stradley.com/-/media/files/resourceslanding/publications/1993/03/fraud-litigation-in-pennsylvania/files/prk-fraud/fileattachment/prk-fraud.pdf|last1=Long|last2=Cameron|first1=Louis C.|first2=Robert W.|date=1993|website=Stradley|access-date=23 May 2020|archive-date=31 July 2020|archive-url=https://web.archive.org/web/20200731211726/https://www.stradley.com/-/media/files/resourceslanding/publications/1993/03/fraud-litigation-in-pennsylvania/files/prk-fraud/fileattachment/prk-fraud.pdf|url-status=live}}</ref>

In cases of a fraudulently induced contract, fraud may serve as a [[Defense (legal)|defense]] in a [[civil action]] for [[breach of contract]] or [[specific performance]] of a [[contract]].<ref>{{Cite journal |last=Fischer |first=David |date=1977 |title=Fraudulently Induced Consent to Intentional Torts |url=https://scholarship.law.missouri.edu/facpubs/192/ |journal=Faculty Publications |volume=46 |pages=71–99 |via=University of Missouri School of Law Scholarship Repository}}</ref> Similarly, fraud may serve as a basis for a court to invoke its [[equitable jurisdiction]].<ref>{{Cite journal |last=Boehm |first=Frederick A. |date=1956–1957 |title=Jurisdiction of Equity in Fraud Cases |url=https://heinonline.org/HOL/LandingPage?handle=hein.journals/upitt18&div=14&id=&page= |journal=University of Pittsburgh Law Review |language=en |volume=18 |issue=1 |pages=159–166 |via=HeinOnline}}</ref><ref>{{Cite journal |last=Hannoch |first=Arthur |date=1935 |title=The Theory of Equitable Jurisdiction over Fraud |url=https://heinonline.org/HOL/LandingPage?handle=hein.journals/mblr4&div=9&id=&page= |journal=Mercer Beasley Law Review |volume=4 |issue=1 |pages=74–80 |via=HeinOnline}}</ref> The remedies for fraud may include [[Rescission (contract law)|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.<ref>{{Cite web|title=The Equitable Remedy of Rescission: A Tool to Defeat Fraud - Insurance Law - Insurance Law - LexisNexis® Legal Newsroom|url=https://www.lexisnexis.com/legalnewsroom/insurance/b/insurancelaw/posts/the-equitable-remedy-of-rescission-a-tool-to-defeat-fraud|website=www.lexisnexis.com|language=en|access-date=23 May 2020|archive-date=1 August 2020|archive-url=https://web.archive.org/web/20200801020015/https://www.lexisnexis.com/legalnewsroom/insurance/b/insurancelaw/posts/the-equitable-remedy-of-rescission-a-tool-to-defeat-fraud|url-status=live}}</ref>

=== Criminal law ===

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.<ref>{{Cite journal |last=Podgor |first=Ellen S |date=April 1999 |title=Criminal Fraud |url=https://digitalcommons.wcl.american.edu/cgi/viewcontent.cgi?article=1330&context=aulr |journal=American University Law Review |volume=48 |issue=4 |pages=729–768}}</ref> 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.<ref>{{cite web |url=http://www.justia.com/criminal/docs/calcrim/1800/1804.html |title=California Criminal Jury Instructions: 1804. Theft By False Pretense |publisher=Judicial Council of California |access-date=27 December 2013 |archive-date=28 December 2013 |archive-url=https://web.archive.org/web/20131228103050/http://www.justia.com/criminal/docs/calcrim/1800/1804.html |url-status=live }}</ref>