Fundamentals to Countering Fraud; The Fraud Act 2006

Last updated: April 29, 2021
Categories: Fact Sheets

Fundamentals to Countering Fraud; The Fraud Act 2006

Last updated: April 29, 2021
Categories: Fact Sheets


Why the Fraud Act?

Updated legislation provides more relevant offences, such as the inclusion of IT and individuals deceiving machines

A requirement to shift from assessing whether the victim was deceived, now we target fraudulent behaviour not the consequences of that behaviour

Fraud offences contained in the Act

  • Fraud by false representation (s.2)
  • Fraud by failing to disclose information (s.3)
  • Fraud by abuse of position (s.4)
  • Possessing articles for use in frauds (s.6)
  • Making or supplying articles for use in frauds (s.7)
  • Participating in fraudulent business carried on by a sole trader (s.9)
  • Obtaining services dishonestly (s.11)
  • Liability of company officers for offences by company (s.12)

Points to Prove

  • Identity of the offender
  • What did they do and how? (Actus Reus)
  • A False Representation – it can be made in writing, it can be made orally, or it can be a misrepresentation e.g. claiming to be someone you are not.
  • Express or implied – it can also be an act of omission
  • Untrue or Misleading – they must know what they are representing is untrue
  • What was in the offenders mind? (Mens Rea)
  • Dishonest – in brief ‘is the act dishonest by the standards of ordinary decent people’ R v Barton 2020
  • Intending to cause a Gain or Loss to – there must be an intent to cause a gain OR loss to money or other property

Penalties

(s.2; s.3; s.4; s.7 and s.9)
The maximum penalty on summary conviction – 12 months imprisonment, a fine (or both)

The maximum penalty on indictment – 10 years imprisonment, a fine (or both)

(s.6 and s.11)
The maximum penalty on summary conviction – 12 months imprisonment, a fine (or both)

The maximum penalty on indictment – 5 years imprisonment, a fine (or both)


Click the link to download a pdf of the factsheet


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