Fraud under Fraud Act 2006

Fraud is a criminal offence that involves deceptive or dishonest behaviour intended to deceive another person or entity for personal gain or to cause them harm. The Fraud Act 2006 consolidated and updated previous legislation related to fraud offences. It also sets out three main types of fraud as follows:

Section 2: Fraud by False Representation
A person is guilty of fraud if he dishonestly makes a false representation, and intends, by making the representation, to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss. Representation means any representation as to fact or law, including a representation as to the state of mind of the person making the representation, or any other person. It may be express or implied. It is false if it is untrue or misleading, and the person making it knows that it is, or might be, untrue or misleading.

Section 3: Fraud by Failing to Disclose Information
A person is guilty of fraud if he dishonestly fails to disclose to another person information which he is under a legal duty to disclose, and intends, by failing to disclose the information to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss.

Section 4: Fraud by Abuse of Position
A person is guilty of fraud if he occupies a position in which he is expected to safeguard, or not to act against, the financial interests of another person, dishonestly abuses that position, and intends, by means of the abuse of that position to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss. A person may be regarded as having abused his position even though his conduct consisted of an omission rather than an act.

The key points and interpretation of fraud under the Fraud Act 2006 are as follows:

Dishonesty: Under Section 2, fraud by false representation occurs when a person dishonestly makes a false representation, knowing that the representation is untrue or misleading, with the intent to gain a financial advantage, cause a loss to another person, or expose someone to a risk of loss. A representation can be made in various forms, such as in writing, verbally, or through conduct.

Failure to disclose: Under Section 3, fraud by failing to disclose information occurs when a person fails to disclose information that they are under a legal duty to disclose, intending to make a financial gain for himself or cause a loss to another person. The failure to disclose must be dishonest and must be done with the intention to deceive.

Position of trust: Under Section 3, fraud by abuse of position occurs when a person occupies a position of trust, responsibility, or authority, and he dishonestly abuses that position to gain a financial advantage for himself or cause a loss to another person. The abuse of position can be by way of an action or an omission.

The maximum penalty is 12 months' imprisonment on summary conviction and 10 years' imprisonment on conviction on indictment. Additionally, the legislation includes provisions related to ancillary offences such as possession, making, and supplying articles for use in fraud. It also contains provisions for corporate liability in cases of fraud.
Back to blog

UOL Case Bank

Upon joining, you become a valuable UOL student and gain instant access to over 2,100 essential case summaries. UOL Case Bank is constantly expanding. Speed up your revision with us now.

Subscribe Now

Where are our students from?

Council of Europe
Crown Prosecution Service
Baker Mckenzie 
Yale University
University of Chicago
Columbia University
New York University
University of Michigan 
INSEAD
University of London
University College London (UCL)
London School of Economics (LSE)
King’s College London (KCL)
Royal Holloway, University of London 
Birkbeck, University of London
SOAS, University of London
University of Manchester
University of Zurich
University of York
Brandeis University
University of Exeter
University of Sheffield
Boston University
University of Washington
University of Leeds
University of Law
University of Kent
University of Hull
Queen’s University Belfast
Toronto Metropolitan University
Hong Kong University of Science and Technology
University of Buckingham
ESSEC Business School

  • Criminal Practice

    Diagrams and Charts

    Our carefully designed diagrams and charts will guide you through complex legal issues.

  • Criminal Law

    Clear and Succinct Definitions

    Key concepts are concisely defined to help you understand legal topics quickly.

  • Property Law

    Statutory Provisions

    Statutory provisions are provided side by side with legal concepts to help you swiftly locate the relevant legislation.

  • Public Law

    Case Summaries

    We have summarised important cases for you so that you don't need to read long and boring cases.

  • Evidence

    Rules and Exceptions

    Rules and exceptions are clearly listed so that you know when a rule applies and when it doesn't.

  • Company Law

    Terminology

    Legal terms and key concepts are explained at the beginning of each chapter to help you learn efficiently.

  • Case Law

    Case law is provided side by side with legal concepts so that you know how legal principles and precedents were established.

  • Law Exam Guide

    Law Essay Guide

    You will learn essential law exam skills and essay writing techniques that are not taught in class.

  • Law Exam Guide

    Problem Question Guide

    We will show you how to answer problem questions step by step to achieve first-class results.

  • Conflict of Laws

    Structured Explanations

    Complex legal concepts are broken down into concise and digestible bullet point explanations.

  • Legal System and Method

    Legal Research

    You will learn legal research techniques with our study guide and become a proficient legal researcher.

  • Jurisprudence and Legal Theory

    Exam-focused

    All essential concepts, principles, and case law are included so that you can answer exam questions quickly.