What is Fraud?
Fraud is an act or omission made with the intent of making financial or property gain (or causing financial or property loss) through dishonestly making false representations, or dishonestly failing to disclose information where there is a legal duty to do so, or abusing a position of trust.
Fraud is a criminal activity in the UK under the Fraud Act 2006 and can be committed by individuals or by organizations. There are three specific offences which are outlined below.
You must not commit fraud by making false representation
Under section 2 of the Act it is an offence to make a false representation with the intent of making a gain (or causing a loss). A representation is false if the person making it knows it to be untrue or misleading. A representation may be express or implied and may be regarded as being made if it is submitted in any form to any communications system or device, in person or automatically.
You must not commit fraud by failing to disclose information
Where there is a legal duty to disclose information, if you fail to do so with the intent of making a gain (or causing a loss), you are committing an offence under section 3 of the Act.
You must not commit fraud by abuse of position
Most positions within the University involve an expectation of trust in the post-holder. Where a position of trust in respect of the financial interests of another is dishonestly abused with the intent of making a gain (or causing a loss) then an offence under section 4 of the Act is committed.
Points to note concerning ‘gain’ or ‘loss’:
(a) In terms of fraud, ‘gain’ or ‘loss’ relates only to money or property, but includes in addition to tangible property both personal and intangible property as well – thus intention to deprive someone of intellectual property could be covered within this definition.
(b) The gain or loss need not be permanent – temporary deprivation of another’s money or property is still an offence, even where the intent extends to returning the money or property afterwards.