Legal Definition of Fraud: An intentional distortion of the truth perpetrated upon someone in order to convince him to give up money, property, some right, or other thing rightfully belonging to him; deception; deceit, trickery | Learn the legal definition of fraud and protect your business from its devastating consequences. Discover how fraud takes different forms like false advertising, Ponzi schemes, and identity theft. Find out the severe consequences for both victims and perpetrators. Take proactive measures to prevent fraud within your company with strong internal controls. Safeguard your business, employees, and customers from the damaging effects of this crime