Before the Fraud Act 2006 came into effect, there was not a clear legal definition of fraud and its offences. The act came into force in January 2007 and replaced previous anti-fraud legislation, making things much simpler. It takes into account that some types of fraud do not require deception and outlines a number of new offences, including those related to possessing, creating and supplying articles for use in fraud and obtaining services dishonestly. Read on for the full lowdown on what the Fraud Act covers.
Section 2 Fraud by False Representation
Under Section 2 of the Fraud Act 2006, it is a criminal offence for someone to deceive another person with the intention of gaining an advantage for themself or causing loss to the other person. However, it is worth noting that the gain or loss does not have to take place for fraud to occur.
A false representation refers to a statement of fact or law that is or may be untrue or misleading. This includes representations made relating to a person’s state of mind. Representations can be spoken, written or even implied through conduct. For example, misusing a credit card to pay for something is a false representation and it does not matter if the merchant accepting the card for payment was deceived.
Similarly, someone who engages in phishing by sending an email to a large group of people pretending to be a legitimate financial institution and asking them to provide their bank details would commit this offence.
Deceiving or attempting to deceive a computer system can also be considered a false representation as long as the system can respond automatically.
Section 3 Fraud by Failing to Disclose Information
Under Section 3 of this act, it is against the law to commit fraud by withholding information that you have a legal obligation to disclose. This legal duty may include obligations under both written and verbal contracts. Additionally, this duty may arise from a fiduciary relationship. This is when someone in a position of power has a duty to act in the best interests of another party.
The individual must be aware of their duty to disclose the information and deliberately choose not to. It is also worth noting that withholding the information must be done with the intent of making a personal gain or causing loss to the other party.
For example, a real estate agent may be aware of a property’s structural issues but still sell the house to the buyer without disclosing this information.
Section 4 Fraud by Abuse of position
Section 4 makes it an offence for a person in a privileged position who is expected to safeguard or not act against another person’s financial interests to dishonestly abuse their position. The individual must have the intention of making a gain for themselves or causing loss to the other party or even exposing them to a risk of loss.
It is important to keep in mind that abuse of position can involve withholding information and not just an act.
Section 6 Possession of Articles For Use in Fraud
Under Section 6, it is an offence to possess or control any article for use in the course of or in connection with fraud. The individual must have had the article with the intention of using it in connection with an offence.
Section 7 Making or Supplying Articles For Use in Frauds
Section 7 makes it an offence to commit fraud by making, adapting, supplying or offering to supply any article that is intended to be used in the course of or in connection with fraud. It is also an offence to make or supply such articles to assist in the commission of fraud.
Get The Legal Advice You Deserve
We understand that fraud can have a devastating impact on your personal and professional life. The Fraud Act 2006 outlines the specific legal framework for criminal fraud, a matter handled by the Crown Prosecution Service. While we cannot assist with criminal cases or offer legal aid, our team of civil fraud solicitors specialises in helping victims recover losses caused by civil fraud. We can guide you through the complexities of the Fraud Act 2006 as it relates to civil matters and help you determine your next steps. Contact us today to discuss your case and explore your options.
