FLK2 · Criminal Liability

Fraud & related offences

SQE1 revision notes — the key rules, leading cases and common traps for this topic, in plain English and current to 2026.

CRL.07 — Fraud & Related Offences

The Fraud Act 2006 replaced the old deception offences. Fraud (s.1) is one offence committed in three ways. All require dishonesty and intent, by the relevant conduct, to make a gain for oneself or another, or to cause loss to another or expose another to a risk of loss (money/property only, s.5). Fraud is conduct-based: no gain, loss or victim reliance is needed — it is complete on the act with the requisite intent.

The three ways:

s.2 — False representation: dishonestly make a representation that is untrue or misleading, knowing that it is or might be untrue or misleading, intending by it to make a gain for oneself or another, or cause loss to another or expose another to a risk of loss. Express or implied; may be to a machine (s.2(5)). Phishing, chip-and-pin misuse, false insurance claims.
s.3 — Failing to disclose: dishonestly fail to disclose information you are under a legal duty to disclose (contract, statute, fiduciary, custom).
s.4 — Abuse of position: dishonestly abuse a position in which you are expected to safeguard another's financial interests (employees, trustees, agents). Can be by omission.

Dishonesty test: Ivey v Genting [2017] / confirmed Barton & Booth [2020] — (1) ascertain the defendant's actual state of knowledge/belief, then (2) apply the objective standard of ordinary decent people. The old subjective Ghosh second limb is gone.

Related offences:

s.6 — Possession of articles for use in fraud (e.g. card-skimmers, phishing kits).
s.7 — Making/supplying such articles.
s.11 — Obtaining services dishonestly: a result crime — services must actually be obtained, without payment, intending not to pay.
Theft Act 1978 s.3 — Making off without payment: knowing payment on the spot is required/expected, dishonestly making off intending to avoid payment.

Common traps:

Fraud needs no actual gain/loss — distinguish s.11 (result) and making off (result), which do require obtaining/leaving.
"Gain/loss" is limited to money or property (s.5) — not reputation or other benefits.
A machine can be deceived under s.2 (unlike the old law).
s.3 needs a legal duty, not a mere moral one.
Apply Ivey, never Ghosh.
Fraud and conspiracy to defraud (common law) still coexist; conspiracy can catch agreements where no full Act offence is committed.

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A woman is the treasurer of a small amateur football club. Members pay £20 each month in cash. Under the club rules she accepted on becoming treasurer, she must bank the subscriptions into the club's dedicated account within seven days. One month she receives £200 in subscriptions and spends the cash on her own gas bill that same day. She intends to replace the money from her wages before anyone notices, and pays an equivalent £200 into the club account two weeks later. Which statement best explains how section 5(3) of the Theft Act 1968 applies to the subscriptions when she pays the gas bill?

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Fraud & related offences

CRL.07 — Fraud & Related Offences

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