Fraud is the intentional deception or misrepresentation of another person for monetary gain. Fraudulent activity can include any false statements or untruthful conduct. Not all dishonesty is considered fraud and it can vary by state. There are two types of fraud, criminal and civil. 

Criminal Fraud- the perpetrator must participate in some criminal or unlawful activity and is punishable by fines, imprisonment, or both. 

Civil Fraud- Fraudulent activity that has taken place in bad faith. The penalties for civil fraud are designed to punish the perpetrator and return the victim to their previous position before the fraud occurred.  

To make a claim of fraud you must have:

  1. A misrepresentation of facts
  2. A person who believes it is false
  3. A person who justifiably relies on this misrepresentation
  4. Actual injury or loss resulting from this misrepresentation 
Types of Fraud, Warning Signs, and Penalties

Types of fraud: 

  • Bankruptcy
  • Tax
  • Identity theft
  • Mail
  • Credit Card
  • Wire
  • Security
  • Telemarketing

Warning Signs:

  • Unsolicited offers, fake emails, lost credit card, phony numbers, wrong addresses on applications

Penalties:

  • Criminal - most criminal fraud is considered a felony and can result in jail time, fines, and probation
  • Civil- restitution or payment of the money back or fines; this depends on the scope of the situation
  • Both
Contact Us
If you are a victim of a breach of contract or if you have been accused of breaching a contract, contact us today to schedule a time to talk about your legal concerns.