Why Proving Fraud Can Be Challenging

Generally, fraud is defined as a type of dishonest or deceptive behaviour intended to result into financial or personal gain to the fraudster. The deceptive act may not cause loss of money, property or legal right but it can be an element to another civil or criminal wrongdoing for which the perpetrator may be prosecuted or imprisoned.

Fraud can be considered a civil case if it involves the intentional misrepresentation or concealment of an important fact that a victim is expected to rely on. However, proving civil fraud can be challenging because each element of fraud must be proven like the state of mind of both the perpetrator and the victim. The most common remedies sought for civil fraud is reversal of a fraudulently obtained agreement, compensation for the harm caused and punitive damages to deter the fraudster from repeating the wrongdoing in the future.

The most common examples of criminal fraud cases include general offenses like theft through false pretence and fraud that is specific to certain categories of victims like insurance fraud, forgery and bank fraud. Conviction for fraud includes several forms of punishment like fines, imprisonment, probation, penalties and restitution.

How fraud is investigated

The standard investigations conducted for fraud include review of financial records, confirmation with the bank or financial institution of financial documents, credit checks with credit reporting companies like Equifax, checking of property titles through trusted sources like lawyers and confirmation of corporate status, directors, officers and shareholders, if applicable.

It is not unusual for a professional fraud investigator to review client documentation and information to identify any signs of fraud, conduct standard searches for public records on people and issues that have been identified, conduct interviews and gather information covertly and overtly and request clients to meet with proposed parties to a transaction to gauge their credibility against any information that has been discovered.

If you have been accused with fraud, your best option is to call MyDefence for legal advice. Fraud is usually associated with white collar crimes where individuals facing allegations are law-abiding citizens without any history of criminal offenses. Hiring a lawyer is the best step to resolve the fraud allegation.