When you hear the word fraud, you think of scams or unethical behavior. But did you know that there are two different types of fraud? Civil fraud and criminal fraud are two distinct types of fraud punishable by law in the United Kingdom. Both involve deception and false representation, but there are some key differences between the two. Let’s take a closer look at civil fraud vs. criminal fraud to see what sets them apart.
What is a fraud?
To understand civil fraud vs. criminal fraud, it’s essential to know what fraud is. Fraud is a false representation of a fact made with the intent to deceive. The legal elements of fraud include:
- A material misrepresentation of a fact
- Failure to disclose a material fact
- Making a representation knowing it to be false
- The misrepresentation was made with the intent to deceive
- The deceived party relied on the misrepresentation
- The reliance resulted in damages, whether financial or otherwise
What is a criminal fraud?
Criminal fraud is a white-collar crime that occurs when someone or an entity intentionally deceives another for personal gain. It is prosecuted by the government as a felony offense and is punishable by a fine, imprisonment, or both. For example, if someone commits tax fraud by intentionally underreporting their income, that would be considered a criminal fraud offense.
In criminal fraud cases, the state, local, or federal government prosecutors file criminal charges against the defendant. The burden of proof in criminal fraud cases is on the prosecutor to prove beyond a reasonable doubt that the defendant committed fraud. This is a higher standard of proof than in civil fraud cases and requires the prosecutor to show that it is highly probable or nearly certain that the defendant committed the fraud.
Types of criminal frauds include:
- Bank fraud
- Securities fraud
- Mail fraud
- Wire fraud
- Health care fraud
- Insurance fraud
- Mortgage fraud
- Identity theft
- Tax evasion
- Charity fraud
- Counterfeiting
What is civil fraud?
Civil fraud is a civil wrong (tort) when one person or entity deceives another for economic gain. It generally refers to cases where another has deceived someone into losing money or property. This can be through false advertising, breach of contract, or any other type of fraudulent misrepresentation. For example, if someone sells you a fake Rolex watch, that would be considered civil fraud.
In civil fraud cases, the victim can file a civil lawsuit to recover damages. The burden of proof in civil fraud cases is on the plaintiff (or victim) to prove that the defendant committed fraud by a preponderance of the evidence. This means that the plaintiff must show that it is more likely than not that the defendant committed fraud and knowingly misrepresented a material fact to the plaintiff.
Types of civil frauds include:
- Breach of contract
- Fraudulent misrepresentation
- False advertising
- Passing off goods as genuine
- Consumer protection
- Negligent misrepresentation
Civil fraud vs. criminal fraud: key differences
Now that you know the basics of civil fraud vs. criminal fraud, let’s take a closer look at the key differences between the two.
- Filing of the case:Civil fraud cases are filed by private individuals or entities, while the government files criminal fraud cases.
- The burden of proof: In civil fraud cases, the plaintiff must prove that the defendant committed fraud by a preponderance of the evidence. In criminal fraud cases, the prosecutor must prove that the defendant committed fraud beyond a reasonable doubt.
- The punishment:If a civil fraud case is successful, the plaintiff may be awarded damages. If a criminal fraud case is successful, the penalties are harsher. The defendant may be fined, imprisoned, or both.
So, what does this all mean for you? If you think you’ve been the victim of civil fraud, you can file a civil lawsuit to recover damages. A civil fraud and asset recovery lawyer can help you build your case and recover the lost money or property. If you think you may have been the victim of criminal fraud, you should contact the police or your local prosecutor’s office to file a criminal complaint.
