Have you been lied to or taken advantage of by another person or business? You may have a viable cause of action for fraud.

Earlier this week, we discussed the elements of fraud – a four-part threshold that must be satisfied to sustain an action against another person.

Today, lets look at 3 common types of fraud claims:

1. Fraud in the Inducement

This type of fraud takes place when someone deliberately deceives another person into taking action. This happens often when homeowners are tricked into transferring a deed giving their property away, while believing they are actually taking action to save their home.

2. Fraudulent Misrepresentation

When a person knowingly makes a false statement or misrepresents the truth, causing another person to take action and sustain losses, they are engaging in fraudulent misrepresentation. This can include deliberate lies as well as known omissions of fact.

To prove this type of fraud, you must show three things:

1) That the party providing the information is aware that the info is false;
2) The party’s intention is to convince another person to take action based on false information; and
3) The action-taker enters the agreement with the defrauder and sustains losses based on the information provided.

3. Negligent Misrepresentation

This type of fraud is similar to the fraud described in the preceding paragraph. Unlike the first, negligent misrepresentation involves carelessness. It occurs when a person relays information to another to encourage action without knowing for sure if the information is credible.

Proving your Fraud Claim

The elements that must be satisfied to support a cause of action are the same for each type of fraud mentioned above. The only differences are the facts that lead up to the fraudulent actions. To learn more about what is needed to prove your fraud claim, read this article.

If you (or your business) has been injured due to the fraudulent actions of another person, use this form to contact us, or give us a call at (954) 779-7009