When a person dishonestly makes a false representation and in doing so intends to make a gain for themselves or a loss for another, they are committing fraud.
What is fraud?
Fraud is a criminal activity committed by those acting in a deceitful way.
There are a number of offences within fraud which fall under three category types:
- False Representation – This is using dishonesty or false representation to make a gain for themselves or a loss for another.
- Failure to Disclose – Failing to disclose information when you have a requirement to do so in order to make a gain for themselves or a loss for another.
- Abuse of a Position of Trust – Acting against, or failing to act in the interest of another person they are expected to safeguard.
A list of the different types of fraud can be found on the Action Fraud website:
How do I report fraud?
All fraud should be reported to Action Fraud, the UK’s national reporting centre for fraud:
- via the online reporting tool on the Action Fraud website, or
- call 0300 123 2040 Monday to Friday 8am – 8pm. If you are calling from abroad, call +44 300 123 2040
Reporting fraud to the police
You can report fraud to us, if:
- the crime is in progress
- an offender is at the scene or nearby
- an offender is known to you and resides in the Avon and Somerset area
- the fraud involves a vehicle, plant, boat, animal or trailer
- the fraud involves a vulnerable victim
You can report it:
- online – fill in the report a crime or incident form
- by phone – call 101
- in person – visit a police station
Should I report fraud?
If you think you have been a victim of fraud, even if it was unsuccessful, you should report it.
If you do not report it, the fraudster will learn by this experience and may be successful next time.
Other types of fraud
A business being a victim of fraud can have serious repercussions. There is a risk of serious financial loss which could ultimately cause the company to become bankrupt. For this reason, measures should be taken to limit the risk posed by these types of fraud.
Long firm fraud
This type of fraud occurs when a business is started up, seems legitimate, but aims to defraud over a period of time.
Confidence can be built between the firm and a supplier by placing smaller orders using falsified details, before going on to place large orders which they then fail to pay for after receiving the goods or services.
Short firm fraud
This type of fraud is similar to the above, however, it takes place over a much shorter time scale.
These fraudulent businesses use credit to obtain easily disposable goods with a high turn over (for example, electrical goods, toys, computers and alcohol) and have them delivered to a third party address and then sell the goods on before disappearing without paying the credit due.
Being caught out by these crimes can be very damaging to your organisation and staff. To avoid becoming a victim, it is important that you perform rigorous checks on potential employees and any organisations with which you do business.
If you suspect there is fraudulent activity taking place, contact Action Fraud as soon as possible so it can be investigated.