Business fraud is, very merely, fraud in any business activity that resorts to deceitful practices to cause economic injury. Company fraudulence and consumer fraud are extremely closely associated. The appropriate definition of consumer fraud is as follows:
"Customer fraud occurs whenever, in the context of a business transaction, false statements of reality are made, the individual making false statements knew that the statements were false when they were made, and that the other party in the transaction relied on the false statements to their detriment."
The elements of company fraud are:
- False representation of fact
- Knowledge that the representation had been false whenever information technology was made
- An intention to get or induce the plaintiff to act or refrain from acting in reliance on the representation
- Damage occurred to the plaintiff as an outcome of the reliance
Unfortunately, company and consumer fraud have become epidemic in our society. Not a time goes by that we don't hear something about identification theft, credit card numbers being taken, investors being defrauded, CEO's being accused of embezzling, and average Joe's being swindled at the regional car dealership. One of the absolute most shameful types of consumer fraud is the one that steals money from our retired Americans, living on a fixed income for which they have actually prepared and conserved for many years, if not years or even a life time.