Definition of Fraud:
Fraud encompasses a wide range of irregularities and illegal acts characterized by intentional deception or misrepresentation. The IIA’s International Professional Practices Framework defines fraud as: “… any illegal act characterized by deceit, concealment, or violation of trust. These acts are not dependent upon the threat of violence or physical force. Frauds are perpetrated by parties and organizations to obtain money, property, or services; to avoid payment or loss of services; or to secure personal or business advantage.”
Fraud can be defined in a number of ways, including the following:
Fraud is the intentional misrepresentation or concealment of a material fact that results in financial or other damages to another party.
Fraud is the use of deception, false suggestions, suppression of the truth, or other unfair means, which is believed and relied upon to deprive another of property or money, resulting in a loss to the party that believed and relied upon such.
Fraud is the intentional deception perpetrated by individuals or organizations, either internal or external to the organization, which could benefit themselves, others, or the organization or which could cause detriment to others or the organization, including falsifying financial or other records to cover up the theft of money or other assets.