FRAUD

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FRAUD
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FRAUD

• Fraud involves obtaining property illegally by
  intentionally making a misrepresentation with the
  purpose of deceiving another party (e.g., a
  person, business or government). There are
  several categories of fraud, with penalties
  determined by the value of the property obtained
  by the fraudulent action.

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Offences against Rights of Property

• 338. FRAUDULENTLY TAKING CATTLE OR DEFACING BRAND
  / Punishment for theft of cattle / Evidence of
  property in cattle / Presumption from possession.
  
• 341. FRAUDULENT CONCEALMENT.
• 342. THEFT, FORGERY, ETC., OF CREDIT CARD /
  Jurisdiction.
• 361. FALSE PRETENCE / Exaggeration / Question of
  fact.

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Offences continued

• 362. FALSE PRETENCE OR FALSE STATEMENT /
  Punishment / Idem / Presumption from cheque
  issued without funds / Definition of "cheque".
• 363. OBTAINING EXECUTION OF VALUABLE SECURITY BY
  FRAUD
• 364. FRAUDULENTLY OBTAINING FOOD AND LODGING /
  Presumption / Definition of "cheque".

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Crimes Against Society/Big Business(theyll
never notice)

• Fraud generally falls into one of three
  catagories.
• Asset misappropriation skimming sales,
  fraudulent billing, false expenses, etc.
• Corruption paying or accepting bribes,
  conflicts of interest, etc.
• Fraudulent financial statements falsifying the
  records to make a company look better or worse
  than it is.

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Examples of Fraud

• Government fraud in health care
• http//www.chcaa.org/education/cost_of_fraud.php
• Occupational Fraud
• http//www.acfe.com/documents/rttn-canadian.pdf
• Internet Fraud
• http//www.419legal.org/blog/2008/04/23/internet-f
  raud-in-canada-reports-predict-an-ominous-rise-in-
  online-crimes-in-canada/

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You as the Victim of Fraud

• Goal of a Scam/Fraud
• Get someone to part with something of value
  (usually money) in a deceitful/dishonest way,
  giving little or nothing in return.

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Common Characteristics of Fraud

• 1. Many people are targeted for a little money
  with the hope that they dont notice, dont care,
  or dont do anything about it.
• 2. A trusted relationship is created
• 3. Promise of legitimacy, authenticity

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• 4. Another offer or incentive to participate.
  There may be an effort to create information
  confusion that is, attention is diverted from
  the scam/fraud by other information, issues or
  opportunities
• 5. Pressure is applied often time pressure
  e.g., need to hurry and make a quick decisionor
  take quick action, or the opportunity will be
  lost.

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• 6. Offers exceptional/extraordinary gain with
  little or no risk.
• 7. There is a cap on the maximum level of
  participation.
• 8. Secrecy.

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Common Schemes

• West African Letter Scam
• Prime Bank Scheme
• Ponzi/Pyramid Scheme
• Affinity Fraud
• Offshore Investment Scam
• Internet Fraud
• Dating Scams

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Assignment

• Knowledge is the best defence
• Become an expert about one type of fraud.
• Present the result of your investigations to the
  rest of the class

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How Fraud is determined

• The following web site gives a good understanding
  of how fraud is determined, and how charges are
  laid.
• http//www.rcmp-learning.org/iim/ecdi1018.htm