Fraud can be categorized into which of the following two types?

Fraud is typically categorized into two main types: theft and deception. Theft refers to the act of taking someone else's property or funds with the intent to permanently deprive them of it. Deception involves misleading a victim to gain something of value, often through false statements or misrepresentations.

This classification is essential as it highlights the psychological and criminal elements that underpin fraudulent activities. Understanding the distinction helps investigators identify the methods employed by fraudsters and formulate effective deterrents, as they can target both the theft of assets and the deceptive tactics used to facilitate such crimes. The emphasis on theft and deception captures the essence of fraudulent conduct by encompassing both the tangible act of stealing and the intangible act of tricking individuals or organizations into giving up their resources.