Fraud Act 2006 Review Flashcards

Vocabulary terms and definitions based on the Fraud Act $$2006$$ lecture notes, covering the legal elements, definitions of gain/loss, and the three primary methods of committing fraud.

Fraud Act (FA) $2006$

The legislation that created a general offence of fraud to replace complex deception offences, catch a broad range of behavior, and keep pace with developing technology.

Section $1(2)$ FA $2006$

The provision that sets out the three methods by which the general offence of fraud may be established: false representation, failing to disclose information, and abuse of position.

Section $2$ FA $2006$

Fraud by making a false representation with the intent to make a gain, cause loss, or expose another to a risk of loss.

False (Section $2(2)$ FA $2006$)

A representation is false if it is untrue or misleading, and the person making it knows it is, or might be, untrue or misleading.

Representation

A statement of fact, law, or the state of mind of the accused or another; it can be express or implied, and communicated via words (spoken, written, website) or conduct.

Implied Representation by Conduct

Actions such as using a stolen debit card to purchase items or ordering a meal at a restaurant, which represent the authority or intent to pay.

Misleading

According to Home Office guidance, this means less than wholly true and capable of an interpretation to the detriment of the victim.

Section $2(5)$ FA $2006$

Provides that a representation is made if it is submitted in any form to any system or device designed to receive, convey, or respond to communications, including machines.

Dishonesty

A key element of the mens rea for all types of fraud, determined by the objective standards of ordinary, decent people as per the test in Ivey v Genting Casinos.

Gain (Section $5$ FA $2006$)

Defined as keeping what one has or getting what one does not have; restricted to money or property (real, personal, or intangible).

Loss (Section $5$ FA $2006$)

Defined as parting with what one has or not getting what one might get; can be temporary or permanent and applies to money or property.

Section $3$ FA $2006$

Fraud by failing to disclose to another person information which the defendant is under a legal duty to disclose.

Legal Duty to Disclose

A duty derived from statute (e.g., benefit claims), contracts of utmost good faith (e.g., insurance), express or implied contract terms, trade custom, or fiduciary relationships.

Fiduciary Relationship

A position of trust, such as between a trustee and beneficiary or agent and principal, where a legal duty to disclose material information exists.

Section $4$ FA $2006$

Fraud by abuse of position where a person occupies a position of financial trust and is expected to safeguard the financial interests of another.

Abuse of Position

A breach of Section $4$ that can be committed through either a positive act (e.g., using a client's bank card for personal bills) or an omission.

Either Way Offence

The classification of fraud, carrying a maximum penalty of $10$ years' imprisonment in the Crown Court, an unlimited fine, or both.

Actus Reus of Section $2$

The act of making a false representation (untrue or misleading).

Mens Rea of Section $2$

Includes dishonesty, knowledge that the representation is or might be false, and intention to make a gain or cause loss.