In Progress
Lesson 1, Topic 77
In Progress

False Representation {s2}

Under section 2 of the Fraud Act 2006, a person is guilty of an offence if they dishonestly make a false representation intending to gain for themselves or cause a loss for someone else with that representation.

AR = making a false representation as to fact or law.

Section 2(2) tells us that a representation is false if it is untrue or misleading, and that the person making the representation is aware of this.

An example of this is a jeweller who appraises and sells a gold-plated metal ring as a genuine gold ring at a higher price. This would be a false representation of fact. A false representation of law would refer to an instance where an individual deliberately interprets a legal notice or document in a particular way.

Section 2(3) highlights that the AR may also include making a false representation as to the state of mind of the person making the representation. This refers to a defendant’s suggestions of how they to intend to use a payment in the future.

Under the previous offences, only humans could be deceived or defrauded; however, the Fraud Act 2006 recognises that machines or electronic systems can also be defrauded – for example, through CHIP and PIN devices, automated cash machines or via ‘Phishing’ emails which dupe victims into surrendering their financial details.

Lastly, a defendant may also make a false representation through their silence, as shown in the following cases: R v Firth [1990], R v Rai [2000].

MR = knowing that the representation made was false and that it was made dishonestly with the intention to gain or cause loss or expose another to the risk of loss.

There are three components to the MR. These are:

i. The dishonesty

There is no definition under the Act regarding the meaning of dishonesty; therefore, the test from R v Ghosh [1982] would apply (the Ghosh test).

ii. The knowledge that the representation is, or might be, false

Covering future and present knowledge.

iii. The intent to gain or cause a loss or to expose another to the risk of loss

The definitions of “gain” and “loss” are explored in section 5 of the Act.