Fraud Act 2006

• Citation: 2006 c. 35
• Sections: 65

Section 1 Fraud

(1) A person is guilty of fraud if he is in breach of any of the sections listed in subsection (2) (which provide for different ways of committing the offence).

(2) The sections are—

(a) section 2 (fraud by false representation),

(b) section 3 (fraud by failing to disclose information), and

(c) section 4 (fraud by abuse of position).

(3) A person who is guilty of fraud is liable—

(a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine not exceeding the statutory maximum (or to both);

(b) on conviction on indictment, to imprisonment for a term not exceeding 10 years or to a fine (or to both).

(4) Subsection (3)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months.

Section 2 Fraud by false representation

(1) A person is in breach of this section if he—

(a) dishonestly makes a false representation, and

(b) intends, by making the representation—

(i) to make a gain for himself or another, or

(ii) to cause loss to another or to expose another to a risk of loss.

(2) A representation is false if—

(a) it is untrue or misleading, and

(b) the person making it knows that it is, or might be, untrue or misleading.

(3) “ Representation ” means any representation as to fact or law, including a representation as to the state of mind of—

(a) the person making the representation, or

(b) any other person.

(4) A representation may be express or implied.

(5) For the purposes of this section a representation may be regarded as made if it (or anything implying it) is submitted in any form to any system or device designed to receive, convey or respond to communications (with or without human intervention).

Section 3 Fraud by failing to disclose information

A person is in breach of this section if he—

(a) dishonestly fails to disclose to another person information which he is under a legal duty to disclose, and

(b) intends, by failing to disclose the information—

(i) to make a gain for himself or another, or

(ii) to cause loss to another or to expose another to a risk of loss.

Section 4 Fraud by abuse of position

(1) A person is in breach of this section if he—

(a) occupies a position in which he is expected to safeguard, or not to act against, the financial interests of another person,

(b) dishonestly abuses that position, and

(c) intends, by means of the abuse of that position—

(i) to make a gain for himself or another, or

(ii) to cause loss to another or to expose another to a risk of loss.

(2) A person may be regarded as having abused his position even though his conduct consisted of an omission rather than an act.

Section 5 “Gain” and “loss”

(1) The references to gain and loss in sections 2 to 4 are to be read in accordance with this section.

(2) “Gain” and “loss”—

(a) extend only to gain or loss in money or other property;

(b) include any such gain or loss whether temporary or permanent;

and “ property ” means any property whether real or personal (including things in action and other intangible property).

(3) “ Gain ” includes a gain by keeping what one has, as well as a gain by getting what one does not have.

(4) “ Loss ” includes a loss by not getting what one might get, as well as a loss by parting with what one has.

Section 6 Possession etc. of articles for use in frauds

(1) A person is guilty of an offence if he has in his possession or under his control any article for use in the course of or in connection with any fraud.

(2) A person guilty of an offence under this section is liable—

(a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine not exceeding the statutory maximum (or to both);

(b) on conviction on indictment, to imprisonment for a term not exceeding 5 years or to a fine (or to both).

(3) Subsection (2)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months.

Section 7 Making or supplying articles for use in frauds

(1) A person is guilty of an offence if he makes, adapts, supplies or offers to supply any article—

(a) knowing that it is designed or adapted for use in the course of or in connection with fraud, or

(b) intending it to be used to commit, or assist in the commission of, fraud.

(2) A person guilty of an offence under this section is liable—

(a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine not exceeding the statutory maximum (or to both);

(b) on conviction on indictment, to imprisonment for a term not exceeding 10 years or to a fine (or to both).

(3) Subsection (2)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months.

Section 8 “Article”

(1) For the purposes of—

(a) sections 6 and 7, and

(b) the provisions listed in subsection (2), so far as they relate to articles for use in the course of or in connection with fraud,

“ article ” includes any program or data held in electronic form.

(2) The provisions are—

(a) section 1(7)(b) of the Police and Criminal Evidence Act 1984 (c. 60),

(b) section 2(8)(b) of the Armed Forces Act 2001 (c. 19), and

(c) Article 3(7)(b) of the Police and Criminal Evidence (Northern Ireland) Order 1989 ( S.I. 1989/1341 (N.I. 12));

(meaning of “ prohibited articles ” for the purposes of stop and search powers).

Section 9 Participating in fraudulent business carried on by sole trader etc.

(1) A person is guilty of an offence if he is knowingly a party to the carrying on of a business to which this section applies.

(2) This section applies to a business which is carried on—

(a) by a person who is outside the reach of section 993 of the Companies Act 2006 (offence of fraudulent trading), and

(b) with intent to defraud creditors of any person or for any other fraudulent purpose.

(3) The following are within the reach of that section —

(a) a company (as defined in section 1(1) of the Companies Act 2006) ;

(b) a person to whom that section applies (with or without adaptations or modifications) as if the person were a company;

(c) a person exempted from the application of that section.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) “ Fraudulent purpose ” has the same meaning as in that section .

(6) A person guilty of an offence under this section is liable—

(a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine not exceeding the statutory maximum (or to both);

(b) on conviction on indictment, to imprisonment for a term not exceeding 10 years or to a fine (or to both).

(7) Subsection (6)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months.

Section 10 Participating in fraudulent business carried on by company etc.: penalty

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Section 11 Obtaining services dishonestly

(1) A person is guilty of an offence under this section if he obtains services for himself or another—

(a) by a dishonest act, and

(b) in breach of subsection (2).

(2) A person obtains services in breach of this subsection if—

(a) they are made available on the basis that payment has been, is being or will be made for or in respect of them,

(b) he obtains them without any payment having been made for or in respect of them or without payment having been made in full, and

(c) when he obtains them, he knows—

(i) that they are being made available on the basis described in paragraph (a), or

(ii) that they might be,

but intends that payment will not be made, or will not be made in full.

(3) A person guilty of an offence under this section is liable—

(a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine not exceeding the statutory maximum (or to both);

(b) on conviction on indictment, to imprisonment for a term not exceeding 5 years or to a fine (or to both).

(4) Subsection (3)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months.

Section 12 Liability of company officers for offences by company

(1) Subsection (2) applies if an offence under this Act is committed by a body corporate.

(2) If the offence is proved to have been committed with the consent or connivance of—

(a) a director, manager, secretary or other similar officer of the body corporate, or

(b) a person who was purporting to act in any such capacity,

he (as well as the body corporate) is guilty of the offence and liable to be proceeded against and punished accordingly.

(3) If the affairs of a body corporate are managed by its members, subsection (2) applies in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

Section 13 Evidence

(1) A person is not to be excused from—

(a) answering any question put to him in proceedings relating to property, or

(b) complying with any order made in proceedings relating to property,

on the ground that doing so may incriminate him or his spouse or civil partner of an offence under this Act or a related offence.

(2) But, in proceedings for an offence under this Act or a related offence, a statement or admission made by the person in—

(a) answering such a question, or

(b) complying with such an order,

is not admissible in evidence against him or (unless they married or became civil partners after the making of the statement or admission) his spouse or civil partner.

(3) “ Proceedings relating to property ” means any proceedings for—

(a) the recovery or administration of any property,

(b) the execution of a trust, or

(c) an account of any property or dealings with property,

and “ property ” means money or other property whether real or personal (including things in action and other intangible property).

(4) “ Related offence ” means—

(a) conspiracy to defraud;

(b) any other offence involving any form of fraudulent conduct or purpose.

Section 14 Minor and consequential amendments etc.

(1) Schedule 1 contains minor and consequential amendments.

(2) Schedule 2 contains transitional provisions and savings.

(3) Schedule 3 contains repeals and revocations.

Section 15 Commencement and extent

(1) This Act (except this section and section 16) comes into force on such day as the Secretary of State may appoint by an order made by statutory instrument; and different days may be appointed for different purposes.

(2) Subject to subsection (3), sections 1 to 9 and 11 to 13 extend to England and Wales and Northern Ireland only.

(3) Section 8, so far as it relates to the Armed Forces Act 2001 (c. 19), extends to any place to which that Act extends.

(4) Any amendment in section 10 or Schedule 1, and any related provision in section 14 or Schedule 2 or 3, extends to any place to which the provision which is the subject of the amendment extends.

Section 16 Short title

This Act may be cited as the Fraud Act 2006.

Section 1

Omit the following provisions—

(a) in the Theft Act 1968 (c. 60)—

(i) section 15 (obtaining property by deception);

(ii) section 15A (obtaining a money transfer by deception);

(iii) section 16 (obtaining pecuniary advantage by deception);

(iv) section 20(2) (procuring the execution of a valuable security by deception);

(b) in the Theft Act 1978 (c. 31)—

(i) section 1 (obtaining services by deception);

(ii) section 2 (evasion of liability by deception);

(c) in the Theft Act (Northern Ireland) 1969 (c. 16 (N.I.))—

(i) section 15 (obtaining property by deception);

(ii) section 15A (obtaining a money transfer by deception);

(iii) section 16 (obtaining pecuniary advantage by deception);

(iv) section 19(2) (procuring the execution of a valuable security by deception);

(d) in the Theft (Northern Ireland) Order 1978 (S.I. 1978/1407 (N.I. 23))—

(i) Article 3 (obtaining services by deception);

(ii) Article 4 (evasion of liability by deception).

Section 2

In the Schedule (offences referred to in section 3 of the 1952 Act), in paragraph 3 (meaning of “offence against property”), after sub-paragraph (l) insert—

(m) the Fraud Act 2006.

Section 3

Omit section 15B (section 15A: supplementary).

Section 4

In section 18(1) (liability of company officers for offences by company under section 15, 16 or 17), omit “ 15, 16 or ” .

Section 5

In section 20(3) (suppression etc. of documents—interpretation), omit “ deception ” has the same meaning as in section 15 of this Act, and ” .

Section 6

(1) In section 24(4) (meaning of “stolen goods”) for “in the circumstances described in section 15(1) of this Act” substitute “ , subject to subsection (5) below, by fraud (within the meaning of the Fraud Act 2006) ” .

(2) After section 24(4) insert—

(5) Subsection (1) above applies in relation to goods obtained by fraud as if—

(a) the reference to the commencement of this Act were a reference to the commencement of the Fraud Act 2006, and

(b) the reference to an offence under this Act were a reference to an offence under section 1 of that Act.

Section 7

(1) In section 24A (dishonestly retaining a wrongful credit), omit subsections (3) and (4) and after subsection (2) insert—

(2A) A credit to an account is wrongful to the extent that it derives from—

(a) theft;

(b) blackmail;

(c) fraud (contrary to section 1 of the Fraud Act 2006); or

(d) stolen goods.

(2) In subsection (7), for “subsection (4)” substitute “ subsection (2A) ” .

(3) For subsection (9) substitute—

(9) “ Account ” means an account kept with—

(a) a bank;

(b) a person carrying on a business which falls within subsection (10) below; or

(c) an issuer of electronic money (as defined for the purposes of Part 2 of the Financial Services and Markets Act 2000).

(10) A business falls within this subsection if—

(a) in the course of the business money received by way of deposit is lent to others; or

(b) any other activity of the business is financed, wholly or to any material extent, out of the capital of or the interest on money received by way of deposit.

(11) References in subsection (10) above to a deposit must be read with—

(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act;

but any restriction on the meaning of deposit which arises from the identity of the person making it is to be disregarded.

(12) For the purposes of subsection (10) above—

(a) all the activities which a person carries on by way of business shall be regarded as a single business carried on by him; and

(b) “ money ” includes money expressed in a currency other than sterling.

Section 8

In section 25 (going equipped for burglary, theft or cheat)—

(a) in subsections (1) and (3) for “burglary, theft or cheat” substitute “ burglary or theft ” , and

(b) in subsection (5) omit “ , and “ cheat ” means an offence under section 15 of this Act ” .

Section 9

Omit section 15B (section 15A: supplementary).

Section 10

In section 19(3) (suppression etc. of documents—interpretation), omit “ deception ” has the same meaning as in section 15, and ” .

Section 11

(1) In section 23(5) (meaning of “stolen goods”) for “in the circumstances described in section 15(1)” substitute “ , subject to subsection (6), by fraud (within the meaning of the Fraud Act 2006) ” .

(2) After section 23(5) insert—

(6) Subsection (1) applies in relation to goods obtained by fraud as if—

(a) the reference to the commencement of this Act were a reference to the commencement of the Fraud Act 2006, and

(b) the reference to an offence under this Act were a reference to an offence under section 1 of that Act.

Section 12

(1) In section 23A (dishonestly retaining a wrongful credit), omit subsections (3) and (4) and after subsection (2) insert—

(2A) A credit to an account is wrongful to the extent that it derives from—

(a) theft;

(b) blackmail;

(c) fraud (contrary to section 1 of the Fraud Act 2006); or

(d) stolen goods.

(2) In subsection (7), for “subsection (4)” substitute “ subsection (2A) ” .

(3) For subsection (9) substitute—

(9) “ Account ” means an account kept with—

(a) a bank;

(b) a person carrying on a business which falls within subsection (10); or

(c) an issuer of electronic money (as defined for the purposes of Part 2 of the Financial Services and Markets Act 2000).

(10) A business falls within this subsection if—

(a) in the course of the business money received by way of deposit is lent to others; or

(b) any other activity of the business is financed, wholly or to any material extent, out of the capital of or the interest on money received by way of deposit.

(11) References in subsection (10) to a deposit must be read with—

(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act;

but any restriction on the meaning of deposit which arises from the identity of the person making it is to be disregarded.

(12) For the purposes of subsection (10)—

(a) all the activities which a person carries on by way of business shall be regarded as a single business carried on by him; and

(b) “ money ” includes money expressed in a currency other than sterling.

Section 13

In section 24 (going equipped for burglary, theft or cheat)—

(a) in subsections (1) and (3), for “burglary, theft or cheat” substitute “ burglary or theft ” , and

(b) in subsection (5), omit “ , and “ cheat ” means an offence under section 15 ” .

Section 14

In section 4 (punishments), omit subsection (2)(a).

Section 15

In section 5 (supplementary), omit subsection (1).

Section 16

In Article 6 (punishments), omit paragraph (2)(a).

Section 17

In Article 7 (supplementary), omit paragraph (1).

Section 18

In section 4 (special time limit in case of theft), for subsection (5)(b) substitute—

(b) obtaining any chattel (in England and Wales or elsewhere) by—

(i) blackmail (within the meaning of section 21 of the Theft Act 1968), or

(ii) fraud (within the meaning of the Fraud Act 2006);

Section 19

In section 11(1) (powers of Commissioners with respect to agricultural levies), for “or the Theft (Northern Ireland) Order 1978,” substitute “ , the Theft (Northern Ireland) Order 1978 or the Fraud Act 2006 ” .

Section 20

In section 1 (extended scope of certain offences), in subsection (1)(d), omit “ 15 or ” (in both places).

Section 21

In section 1 (power of constable to stop and search persons, vehicles etc.), in subsection (8), for paragraph (d) substitute—

(d) fraud (contrary to section 1 of the Fraud Act 2006).

Section 22

In Article 18 (special time limit in case of theft), for paragraph (5)(b) substitute—

(b) obtaining any chattel (in Northern Ireland or elsewhere) by—

(i) blackmail (within the meaning of section 20 of the Theft Act (Northern Ireland) 1969), or

(ii) fraud (within the meaning of the Fraud Act 2006);

Section 23

In Article 3 (power of constable to stop and search persons, vehicles etc.), in paragraph (8), for sub-paragraph (d) substitute—

(d) fraud (contrary to section 1 of the Fraud Act 2006).

Section 24

(1) In section 1(2) (Group A offences), omit the entries in paragraph (a) relating to sections 15, 15A, 16 and 20(2) of the Theft Act 1968.

(2) Omit section 1(2)(b).

(3) Before section 1(2)(c) insert—

(bb) an offence under any of the following provisions of the Fraud Act 2006—

(i) section 1 (fraud);

(ii) section 6 (possession etc. of articles for use in frauds);

(iii) section 7 (making or supplying articles for use in frauds);

(iv) section 9 (participating in fraudulent business carried on by sole trader etc.);

(v) section 11 (obtaining services dishonestly).

Section 25

(1) Amend section 2 (jurisdiction in respect of Group A offences) as follows.

(2) In subsection (1), after “means” insert “ (subject to subsection (1A)) ” .

(3) After subsection (1) insert—

(1A) In relation to an offence under section 1 of the Fraud Act 2006 (fraud), “ relevant event ” includes—

(a) if the fraud involved an intention to make a gain and the gain occurred, that occurrence;

(b) if the fraud involved an intention to cause a loss or to expose another to a risk of loss and the loss occurred, that occurrence.

Section 26

In Article 14 (compensation orders), in paragraphs (3) and (4)(a) for “or Article 172 of the Road Traffic (Northern Ireland) Order 1981” substitute “ , Article 172 of the Road Traffic (Northern Ireland) Order 1981 or the Fraud Act 2006 ” .

Section 27

(1) In Article 38(2) (Group A offences), omit the entries in sub-paragraph (a) relating to sections 15, 15A, 16 and 19(2) of the Theft Act (Northern Ireland) 1969.

(2) Omit Article 38(2)(b).

(3) Before Article 38(2)(c) insert—

(bb) an offence under any of the following provisions of the Fraud Act 2006—

(i) section 1 (fraud);

(ii) section 6 (possession etc. of articles for use in frauds);

(iii) section 7 (making or supplying articles for use in frauds);

(iv) section 9 (participating in fraudulent business carried on by sole trader etc.);

(v) section 11 (obtaining services dishonestly).

Section 28

(1) Amend Article 39 (jurisdiction in respect of Group A offences) as follows.

(2) In paragraph (1), after “means” insert “ (subject to paragraph (1A)) ” .

(3) After paragraph (1) insert—

(1A) In relation to an offence under section 1 of the Fraud Act 2006 (fraud), “ relevant event ” includes—

(a) if the fraud involved an intention to make a gain and the gain occurred, that occurrence;

(b) if the fraud involved an intention to cause a loss or to expose another to a risk of loss and the loss occurred, that occurrence.

Section 29

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Section 30

(1) In Schedule 9 (scheduled offences), in paragraph 10, at the end of sub-paragraph (d) insert “ and ” and omit paragraph (e).

(2) After paragraph 22A of that Schedule insert—

Fraud Act 2006

(23) Offences under section 1 of the Fraud Act 2006 (fraud) subject to note 2 below.

(3) In note 2 to Part 1 of Schedule 9, for “paragraph 10(a), (c) or (e)” substitute “ paragraph 10(a) or (c) or 23 ” .

Section 31

(1) In Schedule 12 (compensation), in paragraph 12(1), omit “ (within the meaning of section 15(4) of the Theft Act (Northern Ireland) 1969) ” .

(2) After paragraph 12(1) of that Schedule insert—

(1A) “ Deception ” means any deception (whether deliberate or reckless) by words or conduct as to fact or as to law, including a deception as to the present intentions of the person using the deception or any other person.

Section 32

(1) In Schedule 6 (trigger offences), in paragraph 1, omit the entry relating to section 15 of the Theft Act 1968.

(2) After paragraph 2 of Schedule 6 insert—

(3) Offences under the following provisions of the Fraud Act 2006 are trigger offences—

section 1 (fraud)

section 6 (possession etc. of articles for use in frauds)

section 7 (making or supplying articles for use in frauds).

Section 33

In section 2(9) (definition of prohibited articles for purposes of powers to stop and search), for paragraph (d) substitute—

(d) fraud (contrary to section 1 of the Fraud Act 2006).

Section 34

In Schedule 4 (personal licence: relevant offences), after paragraph 20 insert—

(21) An offence under the Fraud Act 2006.