What are the three types of fraud under the Fraud Act 2006?

The three types are: fraud by false representation (Section 2), fraud by failing to disclose information (Section 3), and fraud by abuse of position (Section 4). Each requires proof of dishonesty and intention to make a gain or cause a loss or expose another to a risk of loss.

Who investigates fraud offences in the UK?

Fraud investigations may be carried out by local police forces, the Serious Fraud Office (SFO), National Crime Agency (NCA), HM Revenue and Customs (HMRC), Financial Conduct Authority (FCA), and the Insolvency Service.

What is the maximum sentence for fraud in the UK?

In the Magistrates' Court, the maximum is 12 months' imprisonment and/or a fine. In the Crown Court, the maximum is 10 years' imprisonment and an unlimited fine. The court may also make confiscation, compensation, and director disqualification orders.

Legal Blog | Fraud Law Guide

What Is Fraud in UK Criminal Law?

Q: What is fraud in UK criminal law?

Fraud is a criminal offence under the Fraud Act 2006 covering three types of dishonest conduct: making false representations, failing to disclose information when legally required, and abusing a position of trust. The prosecution must prove dishonesty and intention to make a gain or cause a loss.

Q: Does someone have to lose money for fraud to be committed?

No. The Fraud Act 2006 does not require actual financial loss. The offence is complete when the dishonest act occurs with the required intention. The prosecution does not need to prove successful deception or personal financial gain.

Q: What should I do if I am being investigated for fraud?

Seek legal advice immediately. Do not destroy documents, delete emails or messages, alter records, discuss the case with witnesses, or attend a police interview without legal representation. Early legal advice can significantly influence how an investigation develops.

Q: Can fraud allegations be defended?

Yes. Every fraud allegation must be proved beyond reasonable doubt. Defences include challenging whether the representation was false, whether a legal duty to disclose existed, whether the defendant genuinely believed they were acting honestly, and whether dishonesty can be proved.

A complete guide to how fraud is defined under the Fraud Act 2006, the three ways fraud can be committed, the penalties you could face and what to do if you are under investigation.

Updated August 2026

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10 minute read

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By Woolfe & Co Solicitors

Call 01582 380938 Free Consultation

1. What Is Fraud Under the Fraud Act 2006?
2. What Are the Three Types of Fraud?
3. What Must the Prosecution Prove?
4. Does Someone Have to Lose Money?
5. Common Examples of Fraud
6. Who Investigates Fraud Offences?
7. What Are the Penalties for Fraud?
8. What Should I Do If Investigated?
9. Can Fraud Allegations Be Defended?
10. Final Thoughts

Key Takeaways

Fraud is a criminal offence governed by the Fraud Act 2006 in England, Wales and Northern Ireland.
A person can commit fraud by making a false representation, failing to disclose information when legally required, or abusing a position of trust.
The prosecution does not have to prove that anyone actually lost money for a fraud offence to be committed.
Fraud cases can be investigated by the police, the Serious Fraud Office (SFO), HMRC, the National Crime Agency (NCA), or other regulatory bodies.
Conviction for fraud can lead to imprisonment, unlimited fines, confiscation of assets and a criminal record.
Early legal advice from a specialist fraud solicitor can make a significant difference to the outcome of an investigation.

Summary

Fraud is one of the most commonly investigated financial crimes in the UK. It covers a wide range of dishonest conduct, from making false statements on mortgage applications to complex company fraud worth millions of pounds. Under the Fraud Act 2006, the prosecution must prove dishonesty and an intention to make a gain or cause a loss. Understanding how fraud is defined can help individuals and businesses recognise their legal obligations and protect their rights during an investigation.

Introduction

What is fraud in UK criminal law? It is a question frequently asked by individuals who are under investigation, business owners, company directors and anyone accused of dishonesty.

Fraud is a broad criminal offence that covers many different types of dishonest behaviour. Contrary to popular belief, fraud is not limited to stealing money. A person may commit fraud without receiving any financial benefit and even where the intended victim suffers no actual financial loss.

Because fraud investigations often involve large volumes of financial records, emails, mobile phones and digital evidence, they can become lengthy and highly complex. They may also have serious consequences for a person's career, business and reputation.

Understanding how fraud is defined in UK criminal law is the first step in understanding your legal rights if you are accused of a fraud offence. Our fraud and financial crime solicitors have set out everything you need to know below.

What Is Fraud Under the Fraud Act 2006?

Fraud is a criminal offence created by the Fraud Act 2006. Instead of creating dozens of separate offences, Parliament introduced one general offence of fraud that can be committed in three different ways. The prosecution must prove that the defendant acted dishonestly and intended to make a gain for themselves or another person, or intended to cause a loss or expose another person to the risk of loss.

Importantly, the offence is complete once the dishonest act occurs. It is not necessary for anyone to have actually lost money or property.

Judge gavel and law books representing fraud in UK criminal law under the Fraud Act 2006

What Are the Three Types of Fraud?

The Fraud Act 2006 creates three principal ways of committing fraud. Each one targets a different type of dishonest behaviour. Our fraud solicitors have defended cases across all three categories.

Fraud by False Representation

This occurs when someone knowingly makes a false or misleading statement intending to obtain a financial gain or cause another person a loss. It is charged under Section 2 of the Fraud Act 2006.

Providing false information on a mortgage application
Using fake qualifications to obtain employment
Selling goods that do not exist
Using another person's bank card or identity

Fraud by Failing to Disclose

A person may commit fraud by deliberately failing to disclose information when there is a legal duty to do so. This is charged under Section 3 of the Fraud Act 2006.

Failing to declare income when claiming benefits
Concealing financial liabilities during business transactions
Not informing an insurer about material facts

Fraud by Abuse of Position

This applies where someone occupies a position of trust and dishonestly abuses that position for personal gain or to cause another person loss. This is charged under Section 4 of the Fraud Act 2006.

Employees stealing from employers
Company directors diverting company funds
Attorneys misusing someone else's money

What Must the Prosecution Prove?

Every fraud case is different, but the prosecution must prove several essential elements before a conviction can be secured. These apply regardless of which of the three types of fraud is charged.

Legal Requirement	What It Means
Dishonesty	The defendant's conduct would be considered dishonest by the standards of ordinary decent people.
False representation, non-disclosure or abuse of position	One of the three methods under the Fraud Act must be established.
Intent	There must be an intention to make a gain or cause a loss.
Criminal conduct	The dishonest behaviour must satisfy the requirements of the Fraud Act 2006.

Dishonesty is now assessed using the legal principles established by the Supreme Court in Ivey v Genting Casinos (2017), which remains the leading authority in England and Wales. For detailed guidance on how fraud cases are defended, see our fraud case defence solicitors page.

Does Someone Have to Lose Money for Fraud to Be Committed?

No. This is one of the biggest misconceptions about fraud offences. Many people believe that if nobody loses money, no criminal offence has been committed. That is incorrect.

Under the Fraud Act 2006, the prosecution does not need to prove actual financial loss, successful deception, or personal financial gain. The offence can be complete simply because a dishonest act was carried out with the necessary criminal intention.

What Are Common Examples of Fraud?

Fraud covers an enormous range of criminal behaviour. In our experience as criminal defence lawyers, some of the most frequently investigated offences include:

Mortgage fraud
Banking fraud
Insurance fraud
Investment fraud
Identity fraud
Benefit fraud
Tax fraud
Company fraud
Payroll fraud
Procurement fraud
Online shopping scams
Romance scams
Cryptocurrency fraud
Email phishing
Business email compromise
Pension fraud

Modern fraud investigations increasingly involve digital evidence recovered from mobile phones, computers and cloud storage. Our fraud charges solicitors for IT employees have particular experience defending cases involving digital evidence.

Who Investigates Fraud Offences?

Fraud investigations may be carried out by several different agencies depending on the seriousness and complexity of the case. Each agency has its own powers and procedures, and understanding which one is involved can help you prepare your defence.

Local police forces

Handle the majority of fraud investigations, particularly where the alleged fraud is below a certain value or does not involve national agencies.

Serious Fraud Office (SFO)

Investigates and prosecutes the most serious or complex fraud, bribery and corruption cases. Its cases often involve millions of pounds and multiple jurisdictions.

National Crime Agency (NCA)

Targets serious and organised crime, including large-scale fraud networks, money laundering operations and international fraud conspiracies.

HM Revenue & Customs (HMRC)

Investigates tax fraud, VAT evasion, duty evasion and related financial offences. See our HMRC prosecution solicitors page.

Financial Conduct Authority (FCA)

Regulates financial services and prosecutes individuals and firms for financial crime, including insider dealing and market manipulation.

Insolvency Service

Investigates fraud committed by company directors, including fraudulent trading, using company assets for personal benefit and running companies while disqualified.

Some investigations involve multiple agencies working together, particularly where allegations involve organised crime, international transactions or large-scale financial losses. If you are being investigated by any of these bodies, speak to our fraud and financial crime solicitors immediately.

What Are the Penalties for Fraud?

Fraud is an either-way offence, meaning it can be heard in either the Magistrates' Court or the Crown Court. The sentence depends on factors including the amount of financial loss, the level of planning, the number of victims, abuse of trust, and previous convictions.

Court	Maximum Sentence
Magistrates' Court	Up to 12 months' imprisonment and/or a fine
Crown Court	Up to 10 years' imprisonment and an unlimited fine

The court may also make:

Confiscation Orders under the Proceeds of Crime Act 2002.
Compensation Orders.
Director Disqualification Orders.
Serious Crime Prevention Orders.

What Should I Do If I Am Being Investigated for Fraud?

If you discover that the police, HMRC, the Serious Fraud Office or another authority is investigating you for fraud, you should seek legal advice immediately. Do not assume that because you believe you have done nothing wrong, the investigation will simply disappear.

It is critical that you avoid:

Destroying documents.
Deleting emails.
Deleting text messages.
Altering financial records.
Discussing the investigation with potential witnesses.
Attending a police interview without legal representation.

Early legal advice can often influence how an investigation develops. Our fraud solicitors provide free legal aid advice for fraud charges at the police station. Call 01582 380938 any time, day or night.

Can Fraud Allegations Be Defended?

Yes. Every fraud allegation must be proved beyond reasonable doubt. In our decades of defending fraud cases, we regularly see prosecutions fail because they cannot establish one or more of the essential elements.

Possible issues that arise in fraud cases include:

Whether the representation was actually false.
Whether there was any legal duty to disclose information.
Whether the defendant genuinely believed they were acting honestly.
Whether there was an intention to make a gain or cause a loss.
Whether the prosecution can prove dishonesty.

Each case depends entirely on its own facts and evidence. For cases heard at the Crown Court, we work with specialist criminal barristers to present the strongest possible defence.

Related Legal Services

If you have been accused of fraud or are under investigation, we provide specialist criminal defence across the full range of fraud offences. Explore our related services below.

Fraud and Financial Crime Solicitors

Complete defence for all types of fraud and financial crime. 24/7 availability with legal aid funding.

Fraud by False Representation Solicitors

Section 2 Fraud Act 2006. Specialist defence for false representation charges.

Fraud by Failing to Disclose Solicitors

Section 3 Fraud Act 2006. Defence for failure to disclose when under a legal duty.

Fraud by Abuse of Position Solicitors

Section 4 Fraud Act 2006. Specialist defence for abuse of trust allegations.

Free Legal Aid for Fraud Charges

How legal aid works for fraud cases, eligibility criteria, and how we help with applications.

Proceeds of Crime Act Solicitors

Confiscation proceedings, restraint orders and POCA defence following fraud convictions.

Final Thoughts

Fraud is one of the most serious financial crimes under UK criminal law. The consequences of a conviction can extend far beyond a prison sentence, affecting employment, professional licences, business interests and personal reputation.

If you are contacted by the police or another investigating authority regarding a fraud allegation, do not ignore it. Obtaining advice from an experienced criminal defence solicitor at the earliest opportunity can help protect your rights and ensure that your case is properly prepared from the very beginning.