Main Terms and Definitions Fraud
Fraud — Main Terms And Definitions
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.
Fraud
Definition
Under Fraud Act 2006:
• Fraud Occurs Where A Person
• Acts Dishonestly
AND
• Intends To Make Gain For Self/Another
OR
• Intends To Cause Loss/Risk Of Loss To Another
Key Points
• Fraud Is Conduct-Based Offence
• Actual Gain/Loss Not Necessary
• Intent Alone Sufficient
• Three Main Forms Of Fraud Exist
Main Cases
| Case | Principle |
|---|---|
| Idrees | Impersonation = False Representation |
| DPP v Ray | Continuing Representation |
| Valujevs | Informal Trust Position Sufficient |
Fraud By False Representation — s2
Definition
• Making False/Misleading Representation
• Dishonestly
• With Intent To Gain/Cause Loss
Key Points
• Representation May Be Express Or Implied
• Representation May Be Oral, Written Or Through Conduct
• Defendant Must Know Representation False
Main Cases
| Case | Principle |
|---|---|
| Idrees | False Identity = Fraud |
| Barnard | Conduct May Create Representation |
| Lambie | Credit Card Use Implied Representation |
Fraud By Failing To Disclose Information — s3
Definition
• Dishonestly Failing To Disclose Information
• Where Legal Duty To Disclose Exists
Key Points
• Mere Silence Insufficient Without Duty
• Duty May Arise Through Contract, Statute Or Fiduciary Relationship
Main Principle
• Legal Duty Essential For s3 Liability
Fraud By Abuse Of Position — s4
Definition
• Dishonestly Abusing Position Of Trust
• With Intent To Gain/Cause Loss
Key Points
• Position May Be Formal Or Informal
• Defendant Must Be Expected To Protect Financial Interests
Main Cases
| Case | Principle |
|---|---|
| Marshall | Abuse Of Financial Position |
| Valujevs | Informal Relationship Sufficient |
Representation
Definition
• Statement Or Conduct Communicating Information
Key Points
• Representation May Be Express
• Representation May Be Implied Through Conduct
• Silence May Sometimes Create Continuing Representation
Main Cases
| Case | Principle |
|---|---|
| Barnard | Conduct Alone Created Representation |
| DPP v Ray | Continuing Representation Through Silence |
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.
False Representation
Definition
• Representation That Is False Or Misleading
Key Points
• Defendant Must Know Representation False
• Honest Mistake Prevents Liability
• Misleading Statements Sufficient
Main Cases
| Case | Principle |
|---|---|
| Idrees | False Identity Was Misleading |
| Lambie | Invalid Card Use = False Representation |
Implied Representation
Definition
• Representation Created Through Conduct Rather Than Words
Key Points
• Actions Alone May Communicate False Information
• Use Of Cards/Documents Often Creates Implied Representation
Main Cases
| Case | Principle |
|---|---|
| Barnard | Clothing Implied Student Status |
| Lambie | Card Use Implied Authority To Pay |
Continuing Representation
Definition
• Representation That Continues Over Time Until Corrected
Key Points
• Failure To Correct False Impression May Create Fraud
• Silence May Become Misleading
Main Cases
| Case | Principle |
|---|---|
| DPP v Ray | Failure To Correct Impression Created Fraud |
Legal Duty To Disclose
Definition
• Obligation To Reveal Important Information
Key Points
• Duty May Arise Through Contract
• Duty May Arise Through Statute
• Fiduciary Relationships May Create Duty
Main Principle
• No s3 Fraud Without Legal Duty
Abuse Of Position
Definition
• Misusing Trusted Position For Gain Or Loss
Key Points
• Abuse May Be Positive Act Or Omission
• Trust Relationship Important
• Financial Interests Must Be Protected
Main Cases
| Case | Principle |
|---|---|
| Marshall | Financial Responsibility Misused |
| Valujevs | Informal Supervisory Position Sufficient |
Position Of Trust
Definition
• Position Requiring Protection Of Another’s Financial Interests
Key Points
• Employment Not Strictly Necessary
• Informal Responsibility May Suffice
Main Cases
| Case | Principle |
|---|---|
| Valujevs | Informal Trust Relationship Accepted |
Dishonesty
Definition
• Conduct Contrary To Ordinary Honest Standards
Modern Test
Under Barton And Booth:
• Jury Applies Ordinary Honest Person Standards
• Defendant’s Knowledge/Beliefs Considered
Key Points
• Dishonesty Essential For Fraud
• Objective Test Applied
Main Cases
| Case | Principle |
|---|---|
| Barton And Booth | Modern Objective Test |
| Ghosh | Previous Two-Stage Test |
Gain
Definition
Under Fraud Act 2006:
• Obtaining New Property/Money
OR
• Keeping Existing Property/Money
Key Points
• Temporary Gain Sufficient
• Actual Gain Not Necessary
Main Principle
• Gain Broadly Defined Under Fraud Act
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.
Loss
Definition
Under Fraud Act 2006:
• Losing Existing Property/Money
OR
• Risk Of Financial Loss
Key Points
• Actual Loss Not Necessary
• Risk Of Loss Sufficient
Main Principle
• Loss Broadly Interpreted Under Fraud Act
Intent To Gain Or Cause Loss
Definition
• Purpose Of Obtaining Benefit
OR
• Causing Financial Harm
Key Points
• Fraud Focuses On Intention
• Actual Transfer Unnecessary
Main Principle
• Intent Alone Sufficient For Liability
Obtaining Services Dishonestly — s11
Definition
• Dishonestly Obtaining Services
• With Intent To Avoid Payment
Key Points
• Services Must Normally Require Payment
• Defendant Must Intend Non-Payment
Examples
• Subscription Fraud
• Entering Paid Event Without Paying
• Using False Payment Details
Mens Rea Of Fraud
Definition
Fraud Requires:
• Dishonesty
AND
• Knowledge Of Falsity/Abuse
AND
• Intent To Gain/Cause Loss
Key Points
• Defendant Must Know Conduct False Or Misleading
• Recklessness Alone Usually Insufficient
Main Cases
| Case | Principle |
|---|---|
| Barton And Booth | Dishonesty Test |
| Idrees | Knowing False Identity Important |
Financial Gain
Definition
• Economic Benefit Obtained Through Fraudulent Conduct
Key Points
• Money, Property And Financial Advantage Included
• Temporary Benefits Sufficient
Risk Of Loss
Definition
• Possibility Of Financial Harm Created By Fraud
Key Points
• Victim Need Not Actually Lose Property
• Exposure To Risk Sufficient
Main Principle
• Fraud Act Covers Intended Risk Of Financial Harm
Identity Fraud
Definition
• Pretending To Be Another Person For Gain
Key Points
• Common Form Of False Representation
• Fake Documents/Details Often Used
Main Cases
| Case | Principle |
|---|---|
| Idrees | Impersonation During Driving Test |
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.
Most Important Fraud Terms To Memorise
| Term | Core Meaning |
|---|---|
| Fraud | Dishonest Conduct For Gain/Loss |
| False Representation | False/Misleading Statement |
| Implied Representation | Conduct Creating Representation |
| Continuing Representation | Representation Continuing Over Time |
| Failure To Disclose | Dishonest Omission Where Duty Exists |
| Abuse Of Position | Misusing Trust Position |
| Position Of Trust | Responsibility For Financial Interests |
| Dishonesty | Against Honest Standards |
| Gain | Financial Benefit |
| Loss | Financial Harm |
| Risk Of Loss | Possibility Of Financial Harm |
| Identity Fraud | Pretending To Be Another Person |
Most Important Fraud Definitions For Exams
| Term | Definition |
|---|---|
| Fraud | Dishonest Conduct Intended For Gain/Loss |
| False Representation | False/Misleading Representation |
| Abuse Of Position | Misusing Trusted Position |
| Failure To Disclose | Dishonest Omission Despite Legal Duty |
| Dishonesty | Conduct Against Honest Standards |
| Gain | Obtaining/Keeping Property |
| Loss | Losing/Risking Property |
| Continuing Representation | Ongoing Misleading Impression |
| Implied Representation | Representation Through Conduct |
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.