What is Fraud
Fraud is a kind of crime under the judiciary laws. It is considered as a form of violation against jurisdiction. It also includes intentional action to break terms and conditions of any contract. The same term is used to define the action leading to breaking rules and regulation of any company in the form of bluff for some kind of personal profit. A person commits fraud to gain any economic comfort or valuable entity. The most usual objective of fraud is to misguide any person for the sake of money or good position in job. It is also termed as fraudulent.
Civil laws involve punishments in various kinds of frauds. The intensity of fraud can range from normal to severe. The subsequent result of fraud leads to the same intensity of punishment. It means that the more serious fraud worth to be followed by more strict punishment. Similarly there are various classes of fraud. These classes involve bankruptcy fraud, internet fraud; false billing to gain financial profit, false claims regarding insurance, franchise fraud.
False information in application forms one of the common kinds to commit fraud in order to show eligibility for any entrance examination or vacant position in any institute. The most regretting consequence of fraud done by a person is that the person loses its reputation before the party who suffers unwanted conditions for the crime. Moreover, a fraud based on the intention of earning profit in which the person has no right leads another person to lose his or her part of financial benefit, who holds the right to obtain it. This condition also brings about distrust on the person who committed fraud. The person not only suffers the award of punishment decided for the deed but also, lose all its reputation before the friends, relatives and colleagues.
It is also noticed that the fraud committed by employers or owners brings more loss than those which are performed by the employees. It can lead the company to a bigger loss in the gross annual income. Commitment of fraud becomes easier with a large variety of media available in the modern age. It is so easy to hide actual identity and offer false information through internet, e-mail, social service sites. In this way a person can steal the details of other person’s credit card, bank account and personal profile etc. Moreover, false profile can be introduced to companies during online interviews for job and online shopping.
Normally, the companies affiliated to banking sector, financial companies, production sectors and government sector are the victims of fraud. These sectors suffer economic loss often due to fraud performed by the employees working there.