Fraud vs. scam: what’s the difference?
The short answer
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.
What they have in common
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.
Examples
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.
Which one is more common?
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