Fraud is a knowing, intentional misrepresentation or concealment of a material fact when the misrepresentation or concealment (omission) is done to induce another person or entity to act to their detriment—such as by paying money for a product or service or investing in a company, venture, or other proposition.

Fraud is usually a tort—a wrongful act for which a person or entity that is the victim of the fraud may file a civil (noncriminal) lawsuit and recover money damages. But fraud may also be a criminal offense (crime) prosecuted under various state and federal laws (usually statutes).

Laws vary from state to state, but to prevail on a civil fraud claim, a plaintiff generally must show:

• the defendant made a material representation that was false;

• the defendant knew the representation was false or made it recklessly as a positive assertion without any knowledge of its truth;

• the defendant intended to induce the plaintiff to act upon the representation; and

• the plaintiff actually and justifiably relied upon the representation and suffered injury as a result.

The fourth element has two requirements:

• the plaintiff must show that it actually relied on the defendant's representation; and

• such reliance was justifiable.

The law regarding civil fraud claims may be located in a state’s statutes or in its court opinions (common law or case law).

In Oklahoma, fraud is recognized both as a tort for civil litigation and as a criminal offense. For a civil fraud claim, the plaintiff must prove that the defendant made a false material representation, knew it was false or acted recklessly without regard to its truth, intended to induce the plaintiff to rely on this misrepresentation, and that the plaintiff actually and justifiably relied on it, resulting in injury. The reliance by the plaintiff must be both actual and justifiable. These elements are consistent with general fraud principles across various jurisdictions. Oklahoma's civil fraud laws can be found in state statutes and interpreted through case law. On the criminal side, fraud can be prosecuted under specific Oklahoma statutes and federal laws, depending on the nature of the fraudulent activity. Penalties for criminal fraud may include fines, restitution, and imprisonment. It is important for individuals or entities in Oklahoma who believe they have been victims of fraud to consult with an attorney to understand their rights and the remedies available to them under both civil and criminal law.