Fraud and theft have some key similarities. But while they both involve the taking of something that’s not yours, they also have some key differences. Specifically in their method, intent, and the legal consequences of the crime.
Here we’ll look at the definitions of these two crimes and the difference between them. After that, we’ll see how the legal system handles these cases separately and the importance of legal representation.
Definitions of Fraud and Theft
It could be argued that theft is a fraud, and vice versa. However, the law sees these as very separate crimes under different sections of the Canadian Criminal Code.
Theft – This is defined in section 322 of the Criminal Code. It is defined as the taking (or converting) of another person’s property without their permission. There has to be the intent to deprive the person of the property permanently or temporarily.
Fraud – Here we look towards Section 380 of the Criminal Code. Fraud is described as an act of deceiving another to obtain a benefit. This could be money, property, services, or something else. This deceit can be done via any dishonest means.
Related Article: https://www.agpllp.ca/understanding-fraud-charges-common-types-and-legal-defenses/
Key Differences Between Fraud and Theft
As you can see from above, these two have separate definitions but there is arguably some crossover between the two. Let’s look at these key differences in a little more detail.
The Method Used
Theft is quite straightforward and involves taking property without permission. This usually involves an act that is tangible, such as shoplifting or stealing a car. Theft is visible and identifiable, meaning someone removes an object from a person or location.
Fraud is either deception or manipulation. Instead of taking something directly, fraud is committed when a person is tricked into handing over something of value. It relies on dishonesty rather than just the physical taking of something.
Intent and Deception
Both crimes require intent but in different ways. Theft is the intent to deprive someone of their property. The act of theft must be purposeful, this means that if you take something under the impression it was yours to take, this isn’t theft.
Fraud hinges on deception and deceitful tactics, but this can be hard to prove. Such tactics can include false promises, misrepresentation, or manipulation. Fraud is usually premeditated with an intentional plan to deceive.
How the Legal System Handles Fraud and Theft
The legal system deals with these crimes in a similar way, but there are still differences here. Let’s look at what they are:
Investigation and Evidence
Theft crimes usually require evidence showing that a person took property without permission. The likes of camera footage, eyewitness testimony, and physical evidence can be used. The evidence needed is straightforward, even if obtaining that evidence can be difficult.
Fraud is usually more complex as the deception used can have several layers. It has to be proven there was an attempt to deceive, and that a victim suffered due to this deception. The evidence-needed option includes financial documents and digital records.
Potential Defenses
Aside from challenging the evidence, a defence for theft may be that the accused didn’t have the intention to deprive the owner of the property, whether through accident, consent, or another reason. There can also be mistaken ownership if the accused believed the property to be rightfully theirs.
With fraud, the accused may claim they didn’t engage in any deceitful behaviour. They may also argue any misrepresentation was accidental rather than intentional. In rare cases, the accused may claim the fraud was completed under duress.
Penalties
Both crimes are similar in that they have a threshold of $5,000. Below that amount, penalties are often non-custodial with fines and probation, even though prison time is still possible. Above $5,000, and these cases are taken much more seriously.
At this level, custodial sentences become much more likely depending on the severity of the crime. They are usually treated as indictable offences and for theft, the maximum prison sentence given is 10 years. For fraud, that increases up to 14 years.
Importance of Legal Representation
When facing any type of charge, it’s important to have experienced legal representation. Your lawyers will examine any evidence against you and find ways to challenge it. They will also look into how to cast doubt on intent and the prosecution’s claims.
Without strong evidence, proving either theft or fraud can be difficult. Getting the right lawyer gives you the best possible chance of fighting the case and clearing your name. They will also be able to support you through the case and answer any questions you may have.
Final Thoughts
As we’ve seen, there are some key differences between theft and fraud. While they are linked by the intention to take something from a victim, the crime is committed in two very different ways. For both, a custodial sentence is likely if the value of the crime is over $5,000.
Whether faced with either theft or fraud, it’s always wise to seek experienced legal representation. If you need to speak to theft or fraud lawyers, call AGP LLP today. We’ll be happy to offer you a free consultation and advocate on your behalf.
