What is fraud?
Some of the most common terms you’ll encounter are: • Identity theft: Identity theft occurs when your personal information (anything from bank account numbers to your name and address) is stolen and the thief is able to use your information to commit fraud or theft, potentially damaging your credit record and good name in the process. • Fraud: Simply put, fraud is an intentional misrepresentation or concealment of information in order to deceive or mislead. The ultimate goal of the perpetrator is to get your money through illegal means. Unfortunately there are countless types of fraud and new methods are being devised every day. • Phishing: This relatively new type of online scam exploits both e-mail and the internet. By using a combination of spam e-mails and fake representations of legitimate corporate websites (a bank, credit card company, internet provider, etc.), the “phisher” is able to gain access to your most critical financial information (account numbers, PIN numbers, etc.).
Fraud is defined as a deception deliberately practiced to secure unfair or unlawful gain. It has also been defined as the intentional misrepresentation of truth for the purpose of obtaining something of value by inducing another to rely upon false information. Regardless of definition, the key elements of fraud are these: intent, the misrepresentation or untruth, reliance on misrepresentation or untruth, and something of value obtained as a result. There is a fine line between fraud and abuse and, at least regarding insurance fraud, abuse may be considered fraud in some instances. Abuse is defined as hurting or injuring by maltreatment and applies to wrongful or unreasonable treatment by word or action.
Fraud consists of market participants making commitments which are not later upheld. A more tenuous situation is if a market participant is opaque”, which then means that there are large costs to be be paid (a) in establishing antecedents and (b) in confirming that the promise will actually be upheld, before inter-party transactions take place. The importance of trust” and reputation” in the world is a reflection of relationships which are able to avoid fear of fraud. Unscupulous companies have a way of going bankrupt over time, so that companies with a longstanding reputation are less likely to indulge in fraud. If many market participants require a great deal of trust and a long-standing relationship before they do business, this is effectively an entry barrier which limits the competitiveness of the industry and elevates prices. A well functioning market economy is one where strangers can trade with each other; the need to establish trust and long-standing relationships should be as
Fraud is the theft of someone else’s property or the acquisition of the right to someone else’s property by deception or abuse of trust. Now this often happens even when shopping online. If you find yourself in such a situation, that this press release on pissedconsumer com can help you