Fraud is a serious offence in law, and it can take many different forms, from financial scams to false representation. But in law, things get a little more complex. For an act to be considered fraud, there are four elements which need to be proven. Understanding these can help you, as an individual or as a business, to recognise the warning signs of fraud and protect yourself.
False representation
The first element holds that somebody must make a false statement of fact. Perhaps this could be lying about qualifications, misrepresenting a product or offering up false financial information. It’s not just any old lie, though – it has to be something that’s so significant it could influence another person’s decision
Knowledge of falsity
Then, it must be shown that the person making the false statement knew that it was false, or was reckless as to whether it was true or not. Fraud isn’t about making an honest mistake – it’s about deliberate deception or being careless about the truth.
Intent to deceive
The third element is intention, so false representation must have been made with the purpose of deceiving someone else. Without that intent, it becomes very difficult to prove fraud. A London law firm such as www.forsters.co.uk/ can help you determine these elements of fraud.
Reliance and loss
Finally, it must be established that the victim relied on the false statement and suffered some form of loss as a result. This could be financial, but it can also involve property, services or other valuable rights.
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