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 Pennsylvania, fraud is recognized both as a tort for civil litigation and as a criminal offense under various statutes. To succeed in a civil fraud claim in PA, a plaintiff must demonstrate that the defendant made a false material representation, knew the representation was false or was recklessly indifferent to its truth, intended to induce the plaintiff to rely on the representation, and that the plaintiff did actually and justifiably rely on it, resulting in injury. The reliance by the plaintiff must be both actual and justifiable, meaning the plaintiff truly believed the representation and that this belief was reasonable under the circumstances. Pennsylvania's laws on fraud can be found in state statutes as well as in judicial opinions, which together form the common law. If the fraud is of a criminal nature, it would be prosecuted under state criminal statutes or federal law, depending on the specifics of the case. An attorney can provide guidance on the nuances of fraud law in Pennsylvania and represent individuals or entities involved in fraud cases.