What is fraud?
Fraud occurs when a seller of goods or services lies about an important fact or fails to tell the consumer about an important fact. Con artists can commit fraudulent acts against any consumer, but some groups are victimized more frequently than others are.
Proving fraud, in a legal sense, can be difficult. In general, a consumer is a victim of fraud under the following conditions:
- The seller makes a false representation about the
product or service (tells a lie).
- The seller knows that the supposed "facts" are
- The seller intends to deceive the victim.
- The victim actually believes the untruths.
- The victim suffers damages by relying on the untruths.
Brenda Procter, M.S., State Specialist &
Personal Financial Planning, University of Missouri-Extension
Last update: Saturday, April 22, 2006