11. Fraud, Detection and Prevention

Question 1

Where is fraud defined?

Answer 1

The Fraud Act 2006

Question 2

What three ways are fraud committed as stated in the Fraud Act 2006?

Answer 2

1. False Representation
2. Failure to disclose info when there is a legal obligation to do so
3. Abuse of position

Question 3

To be guilty of fraud, what must be proven?

Answer 3

• Dishonesty
  2. Intent to make gain or cause or intend another to suffer a loss

Question 4

What is false representation?

Answer 4

• Failure to disclose info
• Someone else providing false evidence to support fraudulent claim

Question 5

What case defined dishonesty?

Answer 5

R v Ghosh (1982)

Question 6

Explain R v Ghosh (1982) definition of dishonest

Answer 6

Dishonest by ordinary standards of reasonable and honest people & that the defendant must have known the act was by standards dishonest

Question 7

Where would you find the def of Theft?

Answer 7

The Theft Act 1968

Question 8

What does the Theft Act 1968 require the offender do to be theft?

Answer 8

Intent to permanently deprive owner of the property

Question 9

Failure to disclose information when there is a legal requirement can come from whom?

Answer 9

A statute or the principle of Utmost Good Faith

Question 10

Elements of the offence for disclosing information when there is a legal requirement for the defendant are:

Answer 10

1. Failed to disclose information
2. Had a legal duty to disclose info
3. Was dishonest
4. Intended to make a gain or cause a loss

Question 11

Does a gain need to be made or a loss suffered for the offence to be committed?

Answer 11

No, but dishonesty & intent needs to be proved

Question 12

Abuse of Position - What are the elements of this offence for the defendant?

Answer 12

• Occupies a position in which he is expected to safeguard or not to act against the financial interests of another position
• Dishonestly abuses that position and intends by the position to make a gain for himself or another or cause a loss to another

Question 13

Identification of Fraud - what can fraud result from?

Answer 13

1. Fiction event, eg staged accidental loss.
2. Deliberate real event
3. Genuine event but exaggerated

Question 14

What are common fraud indicators?

Answer 14

1. Attitude
2. Work habits
3. Lifestyle
4. Economic stress
5. Opportunity