How Fraud Can Be Prevented
Fraud Explained:
Fraud is an illegal action that is undertaken by a party who seeks to take advantage of another party through devious means. Fraud refers to a deliberate misrepresentation, which directly or indirectly causes another person to suffer a monetary loss.
The charge of fraud will take place if an individual sells a product or service to another party in an untruthful and illegitimate manner.
Fraud in a Legal Scope:
The legal interpretation of fraudulent behavior incorporates a delivery of untruthful information that creates a misrepresentation of the selling party or good being sold. These characteristics, when delivered in a typical business transaction, will cause the seller or individual committing fraud to obtain monies for a service that was not legitimate. Fraud can also come to light if an individual poses as another individual for a direct monetary benefit. For example, stealing credit card information and using the compromised financing is a generic form of fraud known as credit card fraud.
What does a Fraud case typically entail?
The majority of fraud cases involve complex financial transactions that are enshrouded in incongruences to effectively “trick” consumers or investors into thinking they are accessing a profitable asset. These examples of fraudulent transactions or deals are typically attached to ‘white collar criminals’ or business professionals who possess a specialized knowledge and direct criminal intent.
As a result of the number of business transactions and the plethora of information revolving around typical deals, the question of what is fraud becomes somewhat cloudy. To add further complexities within the question of what is fraud, laws concerning a fraud conviction will vary from state to state. Although this variance is present in regards to what is fraud, the most fundamental aspect to prove a fraud conviction is the presence of justifiable or actual reliance in regards to the accused individual.
How to prevent and Fraud and what to do if you are a victim of Fraud?
The most basic way to prevent fraud is to investigate all business deals that you partake in. The examination and investigation of all finances and intricacies associated with a deal will not only yield a better understanding of the deal, but will also come into play if the case is brought to the courts. When an individual investigates a deal and understands the intricacies associated with a proposition they will understand what to expect when the deal is made tangible.
If an investigation is not conducted and the case is brought to a court, the accused party can claim that the alleged victim had the opportunity to discover the potential fraud. That being said, once a party enters into a legally binding contract, remorse of the terms latent in the deal is not the same as fraud.
If you feel as though you entered into a fraudulent business deal, you must immediately consult a legal professional. Be sure to collect all evidence in regards to the business transaction and the monetary damages suffered and be sure to keep in mind that fraud is not easily proven in a court of law.
