There are two types of fraud, criminal and civil.
Criminal Fraud- the perpetrator must participate in some criminal or unlawful activity and is punishable by fines, imprisonment, or both.
Civil Fraud- Fraudulent activity that has taken place in bad faith. The penalties for civil fraud are designed to punish the perpetrator and return the victim to their previous position before the fraud occurred.
To make a claim of fraud you must have:
- A misrepresentation of facts
- A person who believes it is false
- A person who justifiably relies on this misrepresentation
- Actual injury or loss resulting from this misrepresentation