"Fraud" vs. "scam": spotting the difference

Reviewed and edited by

Anwar Kareem 09/07/2025, 15:53

English.me team member

What is similar?

Both "fraud" and "scam" refer to dishonest activities intended to deceive people, usually for financial gain. They both involve tricking victims and are forms of unethical or illegal behavior.

What is different?

"Fraud" is a formal legal term used in laws and official documents, whereas "scam" is more informal and commonly used in everyday speech. "Fraud" can describe an ongoing or systemic deceit, while a "scam" often refers to a specific trick or scheme.

Which one is more common?

Examples of usage

Fraud

The company was investigated for fraud after several customers reported suspicious transactions.
She was charged with tax fraud by the authorities.
Insurance fraud is a serious crime that can result in prison time.

Scam

He lost money to an online scam that promised huge returns.
Beware of phone calls claiming you won a prize—that's usually a scam.
They uncovered a scam targeting elderly homeowners.