How does fraud use false promises or false representations to obtain money or services?

In the context of white-collar crime, fraud functions by utilizing deceit and concealment to illegitimately acquire money, property, or services. It relies on the deliberate misrepresentation of facts—assertions that are intentionally not in accordance with the truth—to mislead victims into parting with their assets.123

Fraudsters often exploit positions of trust and power to execute these schemes. By making false promises or representations regarding the value, terms of sale, or nature of goods and services, perpetrators trick individuals or organizations into entering transactions they otherwise would not have considered. A central element in determining criminal liability is whether the defendant possessed the specific intent to deceive the victim, rather than simply failing in a legitimate business venture.13

These deceptive practices can range from sophisticated telemarketing schemes and identity theft to the creation of bogus entities that pose as legal corporations. Because these crimes often involve complex cover-ups, they are frequently difficult to detect, causing significant harm to society that extends beyond mere monetary loss.1