Last amended by Police, Crime, Sentencing and Courts Act 2022 in 2021. Indirectly increased sentencing for serious fraud through broader changes to serious and organised crime sentencing framework including serious terrorism and serious organised crime offence structures.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
The Fraud Act 2006 replaced the complex array of deception offences under the Theft Acts 1968 and 1978 with a single, unified offence of fraud. Fraud can be committed in three ways: by false representation (s.2), by failing to disclose information where there is a legal duty to do so (s.3), and by abuse of position (s.4). The Act removed the need for the prosecution to prove that a victim was actually deceived or that any gain or loss actually occurred — intent to make a gain or cause a loss is sufficient. Separate offences cover obtaining services dishonestly (s.11), possession of articles for use in fraud (s.6), and making or supplying articles for use in fraud (s.7). The maximum sentence for the main fraud offence is 10 years' imprisonment. The Act implemented recommendations of the Law Commission Report No 276 (2002), which had criticised the old deception offences as confusing, overlapping, and full of technical distinctions that obscured rather than defined culpability.
Key Points
- Single offence of fraud in three forms — maximum 10 years' imprisonment on indictment (s.1)
- Fraud by false representation (s.2): dishonestly making a false or misleading representation intending to make a gain or cause a loss — representation need not be believed by anyone
- Fraud by failing to disclose information (s.3): dishonestly failing to disclose information where there is a legal duty to do so, intending to make a gain or cause a loss
- Fraud by abuse of position (s.4): dishonestly abusing a position of financial trust (e.g. employee, trustee, agent) intending to make a gain or cause a loss
- Obtaining services dishonestly (s.11): dishonestly obtaining services that are made available on the basis that payment has been or will be made, where the defendant knows payment is required but does not intend to pay
- Possession of articles for use in fraud (s.6): maximum 5 years; includes any computer program or data
- Making or supplying articles for use in fraud (s.7): maximum 10 years — covers phishing kits, skimming devices, and fraudulent websites
- Dishonesty is assessed by the Ivey/Ghosh objective test (now Ivey v Genting Casinos [2017]); no requirement to prove actual deception, gain, or loss
Parts & Sections
Amendments History
2015 — Serious Crime Act 2015
Introduced a new offence of participating in activities of an organised crime group (s.45 SCA 2015), which significantly overlaps in practice with fraud offences and enhanced prosecutors' toolkit.
2021 — Police, Crime, Sentencing and Courts Act 2022
Indirectly increased sentencing for serious fraud through broader changes to serious and organised crime sentencing framework including serious terrorism and serious organised crime offence structures.
Frequently asked questions
- What are the three main ways to commit fraud under the Fraud Act 2006?
- The Fraud Act 2006 defines fraud in three distinct ways. First, by false representation, where a person dishonestly makes a false or misleading statement. Second, by failing to disclose information where there is a legal duty to do so. Third, by abuse of position, which involves dishonestly abusing a role where you are expected to safeguard another person's financial interests. All three require the intent to make a gain or cause a loss.
- Do I need to prove that someone was actually deceived or lost money to be convicted of fraud?
- No, the Act does not require the prosecution to prove that a victim was actually deceived or that any financial gain or loss occurred. The offence is complete if the defendant dishonestly carried out the act with the intent to make a gain or cause a loss. The focus is on the defendant's dishonest intent and actions, rather than the actual outcome for the victim.
- What is the maximum prison sentence for fraud in England and Wales?
- The maximum sentence for the main fraud offence is 10 years' imprisonment if tried on indictment. If the case is tried summarily, the maximum sentence is 12 months. Other related offences carry different penalties; for example, making or supplying articles for use in fraud also carries a maximum of 10 years, while possessing such articles carries a maximum of 5 years.
- Can fraud be committed by making a false representation to a machine like an ATM?
- Yes, a false representation can be made to a machine, such as an ATM. The law states that a representation may be express or implied and does not need to be made to a human being. If the representation is untrue or misleading, and the person making it knows it might be false, it can constitute fraud by false representation.
- What does it mean to obtain services dishonestly under the Act?
- The offence of obtaining services dishonestly occurs when a person obtains services by a dishonest act, in breach of a condition that payment is required, and does not intend to pay. This covers situations where services are made available on the basis that payment has been, is being, or will be made, but the defendant knows payment is required and intends to avoid it.