Meaning and Definition of Fraud

Definition of fraud

The Act known as fraud is one in which a person, an institution or entity come from illegal or wrong way according to the parameters established with the aim of obtaining any economic or political advantage. There are different types of fraud which are classified according to the scope or procedure taking, but in general all the scams are characterized by incurring lies, misuse of funds, alteration of data, treason, corruption, etc. Fraud can be carried out by individuals as well as groups or entities.
Fraud is one of the best-known forms of corruption that exist in modern societies. One of their main or characteristic elements is the use of lying and deceit to obtain some kind of benefit. He carried out the fraud operates altering results or data on their behalf, in a way such that the reality appears as successful for it. In many cases, fraud are hidden and no one knows that they happened because it is difficult to find evidence. In other cases, the impunity of those who operate fraudulently allows them to act without objections because they know that they will be not punished due to arrangements with various areas of control and power.
Fraud is a major problem because for its realization not only that proceeds illegally if not involving also the benefit of who carried out the prejudice to a third party. Thus, enough daily and very clear cases of fraud are e.g. banking frauds that can involve the loss of money to third parties, business frauds that may cause institutions to lose power or control over certain activities against other beneficiary companies, or also the electoral fraud, one that happens when a political choice data are altered to benefit a candidate and hurting the real winner.
As noted, in many cases it is difficult and time consuming to detect a fraud because they are several elements to consider. However, to the extent that research can be found responsible for a significant number of persons or entities since the acts of fraud tend to be very complex and deep.