Scam vs. Fraud — What's the Difference?
By Tayyaba Rehman — Updated on September 16, 2023
A scam is a deceptive scheme designed to cheat people out of money or other assets, while fraud is a broader term referring to intentional deception for personal gain or to cause a loss to another party.
Difference Between Scam and Fraud
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Key Differences
A scam is typically a specific scheme or trick used to deceive and defraud someone of their money or property. On the other hand, fraud is a broader term encompassing various deceptive activities intended for personal gain or to harm another.
While a scam is generally a deceptive act targeting individuals, fraud can be perpetrated against individuals, companies, or even governments. Both terms reflect dishonesty, but the scope and methods might differ.
Most scams involve tactics like false advertising, phony offers, or pyramid schemes. Fraud, meanwhile, can manifest in numerous ways, such as credit card fraud, identity theft, or securities fraud.
It's essential to understand that all scams can be classified as fraud, but not all fraudulent activities are necessarily scams. Scams are subsets of fraudulent behavior, specific in their deception.
In everyday language, scam is more colloquial and might refer to smaller-scale deceptive tactics, whereas fraud is more formal and often pertains to more extensive, institutional deceptions or legal issues.
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Comparison Chart
Definition
A deceptive scheme targeting individuals.
A broad term for intentional deception for gain.
Scope
Typically individual-focused.
Can be against individuals, firms, or governments.
Typical Manifestations
False advertising, pyramid schemes.
Identity theft, securities fraud, credit card fraud.
Legal Implications
Can lead to legal consequences.
Often carries significant legal penalties.
Colloquial Usage
More informal, specific schemes.
More formal, wide-ranging deceptive activities.
Compare with Definitions
Scam
A fraudulent tactic deceiving someone for profit.
She lost her savings in a lottery scam.
Fraud
Deception for personal gain or to harm another.
The company was found guilty of tax fraud.
Scam
A dishonest scheme for money-making.
Many saw the investment opportunity as a scam.
Fraud
Intentional misrepresentation causing someone loss.
He was arrested for credit card fraud.
Scam
A deceptive act intending to rob someone.
The email promising a huge inheritance was clearly a scam.
Fraud
Intentionally deceiving someone to secure unfair advantage.
Insurance fraud has become increasingly common.
Scam
A ploy preying on gullibility or desperation.
The scam targeted the elderly with fake medicine claims.
Fraud
A dishonest act breaching trust for profit.
Fraud in the elections led to a recount.
Scam
A trick or ruse designed to deceive.
The scam artist posed as a charity worker.
Fraud
The act or an instance of deceiving for gain.
She was a victim of identity fraud.
Scam
A fraudulent business scheme; a swindle.
Fraud
In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compensation) or criminal law (e.g., a fraud perpetrator may be prosecuted and imprisoned by governmental authorities), or it may cause no loss of money, property, or legal right but still be an element of another civil or criminal wrong.
Scam
To defraud; swindle.
Fraud
A deception practiced in order to induce another to give up possession of property or surrender a right.
Scam
A fraudulent deal.
That marketing scheme looks like a scam to me.
Fraud
A piece of trickery; a trick.
Scam
Something that is promoted using scams.
That new diet burger is a scam.
Fraud
One that defrauds; a cheat.
Scam
(ambitransitive) To defraud or embezzle.
They tried to scam her out of her savings.
Fraud
One who assumes a false pose; an impostor.
Scam
A fraudulent business scheme
Fraud
(law) The crime of stealing or otherwise illegally obtaining money by use of deception tactics.
Scam
Deprive of by deceit;
He swindled me out of my inheritance
She defrauded the customers who trusted her
The cashier gypped me when he gave me too little change
Fraud
Any act of deception carried out for the purpose of unfair, undeserved and/or unlawful gain.
Fraud
The assumption of a false identity to such deceptive end.
Fraud
A person who performs any such trick.
Fraud
(obsolete) A trap or snare.
Fraud
(obsolete) To defraud
Fraud
Deception deliberately practiced with a view to gaining an unlawful or unfair advantage; artifice by which the right or interest of another is injured; injurious stratagem; deceit; trick.
If success a lover's toil attends,Few ask, if fraud or force attained his ends.
Fraud
An intentional perversion of truth for the purpose of obtaining some valuable thing or promise from another.
Fraud
A trap or snare.
To draw the proud King Ahab into fraud.
Fraud
Intentional deception resulting in injury to another person
Fraud
A person who makes deceitful pretenses
Fraud
Something intended to deceive; deliberate trickery intended to gain an advantage
Common Curiosities
Are all scams a form of fraud?
Yes, all scams can be classified as a form of fraud.
Who can be a victim of fraud?
Both individuals and entities like companies or governments can be victims of fraud.
Are scams always about money?
While many scams target money, others might seek personal information or other assets.
Is scam a legal term?
While "scam" is understood legally, it's more colloquial than the term "fraud."
Which is more severe, scam or fraud?
Both are serious, but "fraud" as a term can encompass larger-scale or more severe deceptive activities.
Can fraud be unintentional?
No, fraud involves intentional deception.
Can a legitimate business unintentionally run a scam?
No, scams are deceptive by nature. A business might run a questionable practice, but if it's unintentional, it's not a scam.
Do fraud cases always go to court?
Not always. Some are settled outside of court or handled through arbitration.
Is fraud always a crime?
Yes, fraud is criminally punishable, but the specifics vary by jurisdiction and the type of fraud.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
