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鈥檚 intent to deceive is usually the hardest element of a fraud to prove.聽 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
鈥淥rdinary鈥� people commit frauds.聽 Typically, the 鈥渙rdinary鈥� person has a 鈥減ressure鈥� in his/her life (e.g. financial crisis, large gambling debts, or high medical bills).聽 Then, he/she seizes a perceived 鈥渙pportunity鈥� to alleviate the pressure (e.g. the combination is taped to safe鈥檚 door, or no one ever reviews my work).聽 Afterwards, he/she rationalizes the fraud he/she committed (e.g. they don鈥檛 pay me enough, I鈥檒l pay it back, or I deserve a raise).