The Elements of Offences Under the Fraud Act

The Elements of Offences Under the Fraud Act

Elements of Offences Under the Fraud Act

Definition of Fraud

  • Fraud is an offence as per the Fraud Act 2006. It usually involves an impression of facts which is false, made with the intent to deceive and to gain financially or cause loss to another.

Key Elements of Fraud

False Representation

  • False representation denotes making a false statement that the person knows is untrue or might be untrue, and using it to deceive.
  • An example in a business context could be misleading investors or stakeholders about the company’s financial position.

Failure to Disclose Information

  • When a person fails to disclose certain information that he/she is under a legal duty to disclose, it can be considered as fraud.
  • This could include not revealing detrimental facts about a business product or service that might affect its valuation or reputation.

Abuse of Position

  • Abuse of position occurs when the offender occupies a position wherein he is expected to safeguard the financial interests of another person, but dishonestly abuses that position and intends to make a gain or to cause loss.
  • A business scenario might involve high-ranking company officials embezzling funds, exploiting their positions of power and trust.

Common Offences Under the Fraud Act

Identity Fraud

  • Identity fraud involves the unlawful use of another’s personal information, usually with the goal of acquiring goods or services.
  • Businesses often fall victim to identity fraud, which can lead to significant financial losses and substantial damage to their image and client relationships.

Online Fraud

  • Online fraud, or cybercrime, is a growing concern in the business world. This crime involves the use of internet services or software to deceive and gain.
  • This can include phishing attacks, where criminals attempt to gain sensitive data, or hacking, where they infiltrate business servers to access protected information.

Corporate Fraud

  • Corporate fraud involves activities undertaken by an individual or company that are dishonest and could give an unfair advantage to a company or individual.
  • Violations may involve complex methods carried out by individuals who hold high positions in organisations, to hide or support their fraudulent activities.