What is the difference between Cheating and Fraud?

The difference between fraud and cheating lies in their variety.

Cheating is described under Section 415 of IPC. Section 415 states that “Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any proper­ty to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he would not do or omit if he were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to “cheat”.

Explanation: a dishonest concealment of facts is a deception within the meaning of this section. The deceptions only with fraudulent and dishonest intentions amount to cheating.

According to law fraud is  “A false representation of a matter of fact whether by words or by conduct, by false or misleading allegations, or by concealment of what should have been disclosed that deceives and is intended to deceive another so that the individual will act upon it to her or his legal injury.

Section 420 of IPC,states that ” whoever cheats and thereby dishonestly induces the person deceived to deliver any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine”.

Implications of fraud are found u/s sections 421,422,423 and 424 of IPC.

Cheating is described under Section 415 of IPC. Section 415 states that “Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any proper­ty to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he would not do or omit if he were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to “cheat”.

Explanation: a dishonest concealment of facts is a deception within the meaning of this section. The deceptions only with fraudulent and dishonest intentions amount to cheating.

The implications of fraud are found u/s sections 421,422,423 and 424 of IPC. They have been classified as;

(a)       Misappropriation and criminal breach of trust.

(b)        Fraudulent encashment through forged instruments, manipulation of books of account or through fictitious accounts and conversion of property.

(c)        Unauthorised credit facilities extended for reward or for illegal gratification.

(d)        Negligence and cash shortages.

(e)        Cheating and forgery.

(f)         Irregularities in foreign exchange transactions.

(g)        Any other type of fraud not coming under the specific heads as above.