What is the definition of fraud?

Fraud is defined as a dishonest act that is deliberately committed for financial or personal gain. It involves deception to mislead individuals or entities, often resulting in harm or loss to others while benefiting the perpetrator. This definition encompasses various illegal activities such as embezzlement, identity theft, and misrepresentation. Understanding fraud is important because it highlights the unethical behavior that undermines trust in financial transactions and business operations. Recognizing these elements is crucial for individuals and businesses to protect themselves from potential risks associated with fraudulent activities.