Definition
Fraud refers to any intentional act of deception designed to secure an unfair or unlawful gain or to cause a loss to another party.
Context
Fraud is an umbrella term covering various forms of economic crime, including asset misappropriation, corruption, and financial statement fraud. It can be committed by employees, external parties, or through collusive arrangements. Fraud is closely linked to internal controls, governance structures, and risk management, and represents a core subject of economic forensics.
Meaning
Fraud results in financial losses, reputational damage, and legal consequences. Preventing and detecting fraud is a key objective of internal controls, compliance frameworks, and forensic investigations.
Example
An employee manipulates invoices or payment processes to divert funds for personal gain.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Fraud", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/fraud/, accessed March 25, 2026.