What is Fraud By False Representation?

Legally reviewed by: Laura Smith Jun 2025 In: Corporate & Financial Crime

What is Fraud by False Representation?

Fraud by false representation is when either a business or individual deliberately lies or misrepresented the truth while conducting a transaction. This is done with the intent of making a financial gain for themselves and/or causing a loss to another party. Fraud by false representation is defined as being:

• Dishonest and false representation.
• Untrue or misleading.
• The person carrying out the misrepresentation believes that it is, or to some extent could be, untrue or misleading.

Fraud by false representation is dealt with under Section 2 of the Fraud Act 2006 in which the legislation breaks down the three main ways that an individual or business can be liable for fraud by false representation:

1. Firstly, the individual or business dishonestly provides false information
2. The individual or business acknowledges that the representation is (or could be) inaccurate or deceptive, and
3. Despite being aware of the misrepresented truth, they still conduct the transaction with the intent to secure personal gain, induce a loss for another, or subject another to the risk of financial detriment.

It is important to note that the court focuses on the defendant’s intention to cause the outcome, rather than whether the gain or loss actually occurred.

Defining Gains and Losses in Fraud?

When referring to false representation, gains or losses are referred to as the ‘gaining’ or ‘losing’ of money or other property. It’s important to note that the property gained or lost, must be a physical asset.

‘Gaining’ refers to acquiring an asset that you do not have or retaining an asset you already have. An example of ‘gaining’ would be receiving money for a product you intend to sell, yet keeping the product.

‘Losing’ refers to unfairly parting with an asset that is yours or missing out on an asset you were meant to receive. An example of ‘losing’ would be where someone keeps money from you that is rightfully yours.

Examples of Fraud by False Representation

Fraud by false representation can include a broad range of cases involving stolen or falsified assets that lead to a business or individual’s gain and another’s loss. Examples include:

• Charging a customer for work that you didn’t do but claim you did.
• Selling assets that don’t belong to you.
• Persuading someone to buy something that does not exist.
• Providing inaccurate information on an application form, such as inflating your income to obtain a mortgage.
• Claiming for expenses that never incurred.
• Using identification that isn’t yours such as a stolen credit card.
• Lying about personal circumstances for financial gain. For example, the Grenfell Tower fire of 2017 has led to 11 prison sentences for people who lied about living in the building in order to claim various benefits. This includes charity donations of money and accommodation.
• Using a membership card that doesn’t belong to you to gain access to a gym or club.

In order to commit fraud by false representation, you must, express or imply a dishonest intention. This can be carried out in many different ways including:

• A verbal indication such as orally telling someone they owe you for work you did not do.
• In writing such as sending an email trying to sell a property that does not exist.
• A physical indication such as using a credit card that does not belong to you.

How a Solicitor Can Defend Against Allegations of Fraud by False Representation

If you are asked to attend a police station for an interview, it is important to request the presence of a solicitor. During the interview, you will be questioned about your actions. Answering the questions can be difficult, as the police can withhold certain details to prompt self-incrimination. That’s why it’s important to have a solicitor who can help you navigate the interview process and protect your interests.

After your interview, the police may offer you a formal caution. Alternativley, if they believe there is sufficient evidence, decide to press charges. In such cases, your file will be sent to the Crown Prosecution Service (CPS), which will determine whether to formally authorise criminal charges. This can take place during your police bail or after you are released under investigation.

If charges are brought, a hearing will be scheduled at a Magistrates’ Court. Depending on the seriousness of the case, it may then proceed to the Crown Court for trial (if you plead not guilty) or for sentencing (if you plead guilty). Less serious cases might remain within the Magistrates’ Court for resolution.

Is Fraud by False Representation an offence that can attract a custodial sentence?

Depending on the seriousness of the allegations against you, your case could be seen at either the Magistrates’ Court or the Crown Court.

In England and Wales, Fraud is a serious crime with a maximum imprisonment sentence of 10 years in addition to a fine for the most serious cases. Alternatively, more minor cases can be addressed in the magistrates’ court as a summary offence, and will have lighter sentences such as a community based penalty or a suspended sentence.

If you’re facing fraud allegations, it’s vital that you quickly seek expert legal representation that understands the law and how to analyse the evidence against you. Cartwright King has a proven track record of defending against fraud allegations. We remain a leading national law firm confirmed by the newly published Legal 500 and Chambers and Partners rankings.

Get in contact with us to have a no-commitment discussion with one of our corporate and financial crime solicitors. Call 0345 894 1622 or request a call back.