Fraud vs Abuse

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Fraud vs. Abuse Name Course Number Date Fraud vs. Abuse Differentiate between fraud and abuse. Define fraud and abuse, identify at least three elements of each, and contrast the differences between them. Cite illustrative examples of the differences. Fraud is defined as the intentional deception used for personal gain or to hurt another individual or it can be put simply as theft by deception. Under the common law there are four general elements that must be present for a fraud to exist (Wells 2008). The first element is a material false statement. The second is knowledge that the statement provided was completely false. Third is reliance on the false statement by a victim and the fourth is damages resulting from a victims reliance on that false statement. Abuse is also defined as deception and can mean improper use and/or treatment. To deceive is “to be false; to fail to fulfill; to cheat; to cause to accept as true or valid what is false or invalid.” (Wells 2008). Elements of abuse are coming to work late, taking sick leave when not sick, and attending personal business during paid work hours. There is one major difference between fraud and abuse; fraud is intentional deception for personal gain whereas abuse is the improper use of something. For example, Sarah works at Target as a cashier. Everyday Sarah is late to work by two hours, but her supervisor clocks in for her so she is getting paid for two hours she isn’t actually working. After doing this every day for 3 months Sarah has accumulated $11,520 in hours she has not worked. An example of abuse is when Andrew’s friends come to visit him at the clothing store he works at, and Andrew decides to give his friends a 50% discount on their clothes. There is no discounts going on throughout the store, Andrew only gave his friends the discount. Compare and contrast Sutherland’s theory of differential

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