Regardless of the definition used, certain characteristics are common to fraud, including:
Misrepresentation of a material fact
- Made knowingly and with the intent to deceive
- Reliance on the misrepresentation by the victim
- Resulting in injury or damage from such reliance
The perpetrator’s intent to deceive is usually the hardest element of a fraud to prove. The following are examples which have been used to prove an intent to deceive:
Admissions
- Alteration of documents
- Concealment of evidence
- Confessions
- Destruction of evidence
- False statements (lies)
- Obstruction of justice
- Pattern of conduct (repetition of behavior)
- Personal gain
- Testimony of a co-conspirator
“Ordinary” people commit frauds. Typically, the “ordinary” person has a “pressure” in his/her life (e.g. financial crisis, large gambling debts, or high medical bills). Then, he/she seizes a perceived “opportunity” to alleviate the pressure (e.g. the combination is taped to safe’s door, or no one ever reviews my work). Afterwards, he/she rationalizes the fraud he/she committed (e.g. they don’t pay me enough, I’ll pay it back, or I deserve a raise).
