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What is fraud?

Last Updated: March 11, 2008

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Fraud occurs when a seller of goods or services lies about an important fact or fails to tell the consumer about an important fact.

Proving fraud, in a legal sense, can be difficult. In general, a consumer is a victim of fraud under the following conditions:

* The seller makes a false representation about a product or service (tells a lie).

* The seller knows that the supposed "facts" are untrue.

* The seller intends to deceive the victim.

* The victim actually believes the untruths.

* The victim suffers damages by relying on the untruths.

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