Fraud

The intentional perversion of the truth for the purpose of inducing another person or other entity in reliance upon it to part with something of value or to surrender a legal right. Fraudulent conversion and obtaining of money or property by false pretenses.

Fraud involves either the offender receiving a benefit or the victim incurring a detriment. The benefit or detriment could be either "tangible" or "intangible." Intangibles are anything which cannot be perceived by the sense of touch. They can be benefits, e.g., a right or privilege, a promotion, enhanced reputation; or a detriment, e.g., loss of reputation, injured feelings.

Examples of common fraud cases are where something of value, such as a DVD player or an automobile, is rented for a period of time but is not returned. This offense, conversion of goods lawfully possessed by bailees, is classified as fraud and not larceny. In such cases, the offenders originally had lawful possession of the property (the property was either rented, loaned, or the person was in some way entrusted with its possession) and through deceit (they promised to return it) kept the property.

Agencies must include in this classification:

• Bad checks, except forgeries and counterfeiting
• False pretenses/swindle/confidence games
• Leaving a full-service gas station without paying attendant
• Credit card/Automatic Teller Machine Fraud
• Impersonation
• Welfare Fraud
• Wire Fraud
• Attempts to commit any of the above

Last reviewed October 2024