1. Defining fraud

In law, fraud is characterized by four constituent elements:

• misrepresentation, with the intentional production of misinformation or the deliberate omission of significant facts. Lying by omission is just as powerful as lying, because we know we're lying;

• illegality, in violation of a law, regulation, standard or procedure;

• the intentional element, expressed by the will to commit an act in violation of a frame of reference;

• harm, to the detriment or benefit of another person or organization.

Fraud is also defined by the Association of Certified Fraud Examiners (ACFE) as a deliberate act of deception for financial gain.

It represents a major threat to businesses, and is nowadays...