REPRESENTATION • DISHONESTY • KNOWLEDGE • GAIN OR LOSS

Fraud by False Representation Defence

Fraud by false representation turns on what representation was made, whether it was false or misleading, what the defendant knew, whether the conduct was dishonest and whether there was an intention to make a gain or cause loss or risk of loss.

Discuss a fraud-by-representation investigation View parent service

KEY ANSWER

The position in brief

Section 2 Fraud Act 2006 requires a false representation made dishonestly, with knowledge that it is or might be untrue or misleading, and with intent to make a gain or cause loss or expose another to a risk of loss.

No actual gain or loss is required. The prosecution case should identify the representation itself and when and how it was communicated.

Legal issues

A representation may be express or implied and can be made to a person or machine. The defence may concern falsity, knowledge, dishonesty, authorship, authority or the alleged gain/loss intention.

Evidence that matters

Evidence may include contracts, applications, emails, messages, bank records, system logs, IP/device data, accounting material, company records and witness evidence.

Reasonable lines of enquiry

Enquiries may include complete transaction records, system audit logs, authority/delegation documents, communications showing belief or understanding, and financial analysis of the alleged gain or loss.

What happens next

Fraud investigations can be document-heavy and may remain pre-charge for a substantial period. Serious or complex cases may proceed to the Crown Court and generate POCA proceedings.

Immediate steps

Preserve original documents, emails and financial records. Do not alter accounting or application records. Build a chronology of what was represented and what information was available at the time.

What should you send us?

Send the allegation/charge, alleged representation, contracts/emails, financial records, system logs, police/regulator papers and next date.

Legal information from Theodorous. The law and procedure can change and the application of the law depends on the facts. This guide is general information, not advice on your individual case.

HOW WE CAN HELP

What Theodorous can do

We can analyse the section 2 elements, reconstruct the transaction, review financial/digital evidence, advise at interview and prepare pre-charge and Crown Court defence.

Primary legal sources

CPS Fraud Act 2006 guidance.

Fraud Act 2006, section 2.

RELATED GUIDANCE

Related services and guides

Fraud & Financial Crime

Main service page

Pre-Charge Representations

Stage and procedure

Police Station Representation

Related guidance

POCA & Confiscation

Related guidance

Crown Court Representation

Related guidance

NEXT STEP

Discuss a fraud-by-representation investigation

Send the alleged representation and underlying transaction documents for a focused fraud review.

Discuss a fraud-by-representation investigation

FREQUENTLY ASKED QUESTIONS

Questions about this issue

Does the victim have to believe the false representation?

No. The offence focuses on the defendant’s conduct and intent; actual reliance or loss is not an essential element.

Can a representation be implied rather than written?

Yes. The Fraud Act allows express or implied representations, including representations communicated by conduct.

Can a representation be made to a machine?

Yes. The Act expressly permits representations to systems or machines, for example in electronic payment or online transactions.