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a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain. A hoax also involves deception, but without the intention of gain, or of damaging or depriving the victim; the intention is often humorous. Cost of fraud The typical organization loses 5 percent of its annual revenue to fraud, with a median loss of $160,000. Frauds committed by owners and executives were more than nine times as costly as employee fraud. The industries most commonly affected are banking, manufacturing, and government. Types of fraudulent acts Fraud can be committed through many media, including mail, wire, phone, and the Internet (computer crime and Internet fraud). The international dimensions of the web and ease with which users can hide their location, the difficulty of checking identity and legitimacy online, and the simplicity with which crackers can divert browsers to dishonest sites and steal credit card details have all contributed to the very rapid growth of Internet fraud. Types of criminal fraud include: * bait and switch * bankruptcy fraud * benefit fraud, committing fraud to get government benefits * counterfeiting of currency, documents or valuable goods * charlatanism * confidence tricks such as the 419 fraud and Spanish Prisoner * creation of false companies or "long firms" * embezzlement, taking money which one has been entrusted with on behalf of another party * false advertising * false billing * false insurance claims * forgery of documents or signatures, * fraud upon the court * health fraud, for example selling of products known not to be effective, such as quack medicines, * identity theft * investment frauds, such as Ponzi schemes and Pyramid schemes * Moving scam * religious fraud * marriage fraud to obtain immigration rights without entitlement * rigged gambling games such as the shell game * securities frauds such as pump and dump * tax fraud, not reporting revenue or illegally avoiding taxes. In some countries, tax fraud is also prosecuted under false billing or tax forgery. More Info: Click Here

A confidence trick or confidence game (also known as a bunko, con, flim flam, gaffle, grift, hustle, scam, scheme, swindle or bamboozle) is an attempt to defraud a person or group by gaining their confidence. The victim is known as the mark, the trickster is called a confidence man, con man, confidence trickster, grifter, or con artist, and any accomplices are known as shills. Confidence men or women exploit characteristics of the human psyche such as greed, both dishonesty and honesty, vanity, compassion, credulity, irresponsibility, and naïveté. Confidence men or women have victimized individuals from all walks of life. History The first known usage of the term "confidence man" in English was in 1849; it was used by American press during the United States trial of William Thompson. Thompson chatted with strangers until he asked if they had the confidence to lend him their watches, whereupon he would walk off with the watch; he was captured when a victim recognized him on the street. Vulnerability to confidence tricks Confidence tricks exploit typical human qualities such as greed, dishonesty, vanity, honesty, compassion, credulity, irresponsibility and naïveté. The common factor is that the mark relies on the good faith of the con artist. Just as there is no typical profile for swindlers, neither is there one for their victims. Virtually anyone can fall prey to fraudulent crimes. ... Certainly victims of high-yield investment frauds may possess a level of greed which exceeds their caution as well as a willingness to believe what they want to believe. However, not all fraud victims are greedy, risk-taking, self-deceptive individuals looking to make a quick dollar. Nor are all fraud victims naïve, uneducated, or elderly. A greedy or dishonest mark may attempt to out-cheat the con artist, only to discover that he or she has been manipulated into losing from the very beginning. This is such a general principle in confidence tricks that there is a saying among con men that "you can't cheat an honest man." Shills, also known as accomplices, help manipulate the mark into accepting the con man's plan. In a traditional confidence trick, the mark is led to believe that he will be able to win money or some other prize by doing some task. The accomplices may pretend to be strangers who have benefited from performing the task in the past. More Info: click here