Fraud is a serious criminal offence in New South Wales (NSW), with laws designed to address a broad range of dishonest conduct that causes financial loss to individuals, businesses, or government entities. Fraud is primarily prosecuted under Part 4AA of the Crimes Act 1900 (NSW), although some offences fall under Commonwealth legislation, such as the Criminal Code Act 1995, Taxation Administration Act 1953, and Corporations Act 2001.
The core fraud offence in NSW is found in section 192E of the Crimes Act 1900. A person commits fraud if they:
Dishonestly obtain property belonging to another,
Dishonestly obtain a financial advantage for themselves or someone else, or
Dishonestly cause financial disadvantage to another person, by deception
For this offence to apply, the deception must be either intentional or reckless, and the conduct must be dishonest by the standards of ordinary people, with the accused knowing that their actions were dishonest by those standards. The maximum penalty is 10 years' imprisonment when prosecuted in the District Court.
To fully understand how fraud is prosecuted, it’s important to understand some key legal terms:
Deception involves misleading another person, whether through words or conduct, about facts, the law, or one’s own intentions. It also includes unauthorised use of electronic systems, such as accessing someone’s online accounts without permission.
Dishonesty is defined by the community’s standards. The conduct must be dishonest according to what ordinary people would consider dishonest, and the accused must have known this.
Obtaining property involves acquiring ownership, possession, or control over property for oneself or another person, or causing someone else to do so.
Financial advantage means any gain, whether by receiving money or retaining money that would otherwise have to be repaid. It also includes preventing a loss.
Causing financial disadvantage involves conduct that results in a person suffering financially, whether directly or indirectly.
Fraud charges can be heard in either the Local Court or the District Court, depending on the seriousness of the offence and the value involved. If heard in the Local Court, the maximum penalty is 2 years' imprisonment per offence, whereas the District Court is not bound by a jurisdictional maximum penalty.
As an alternative to full-time imprisonment, courts may impose other penalties, such as:
Section 10(1)(a) dismissal.
Conditional Release Orders (CROs)
Fines
Recognizance order.
Community Correction Orders (CCOs)
Intensive Correction Orders (ICOs)
The outcome depends on the facts of the case, the offender’s criminal history, and the extent of financial harm caused.
Fraud can arise in many forms, including:
Cyber fraud – e.g., phishing scams or hacking to steal money or personal data.
Bank fraud – e.g., accessing someone else’s bank account or forging transactions.
Credit card fraud – e.g., using stolen card details to make purchases.
Workplace fraud – e.g., submitting false invoices or misusing company funds.
Insurance fraud – e.g., lodging false or inflated claims to gain payouts.
In addition to the general fraud offence under section 192E, the Crimes Act 1900 (NSW) contains several other offences related to fraudulent conduct, including:
Destroying or concealing accounting records with intent to defraud.
Making or using false or misleading statements to gain financial advantage.
Deceiving company members or creditors.
These offences carry penalties ranging from 5 to 7 years’ imprisonment, depending on the nature of the conduct.
Identity fraud involves the misuse of someone else’s personal information—such as names, credit card numbers, or identity documents—to commit fraud. Under Part 4AB of the Crimes Act 1900 (NSW), it is an offence to:
Deal in identification information,
Possess identification information with intent to commit a crime, or
Possess equipment to create identification documents.
Maximum penalties for these offences range from 3 to 10 years' imprisonment, depending on the exact nature of the offence.
Forgery offences are contained in Part 5 of the Crimes Act 1900 (NSW) and include:
Making false documents with intent to deceive,
Using false documents, and
Possessing equipment to create false documents.
These offences can carry a maximum penalty of 10 years' imprisonment and are often prosecuted alongside fraud charges.
Corporate fraud typically involves deceptive conduct carried out by or within companies and is often prosecuted under Commonwealth law. Common types include:
Falsifying financial records under the Corporations Act 2001,
Tax fraud under the Taxation Administration Act 1953, such as submitting false returns, and
Misleading investment conduct under the Criminal Code Act 1995 (Cth).
Penalties for Commonwealth fraud offences can reach up to 15 years' imprisonment, depending on the nature and severity of the conduct.
Fraud offences carry serious consequences. In addition to prison time, a conviction can lead to loss of employment, reputational damage, and difficulty obtaining future financial services. The laws around fraud are complex and the consequences of a conviction can be life-changing.
If you are under investigation or have been charged with fraud, it is essential to seek expert legal advice as early as possible. Acting promptly allows you to secure the necessary tools to defend your case effectively, including obtaining expert reports and gathering supporting evidence.
At ED Legal, we specialise in defending complex fraud and white-collar crime matters. Our experienced criminal defence lawyers are available to:
Analyse the strength of the prosecution case,
Develop a strong defence strategy,
Represent you in court, and
Negotiate with prosecutors when appropriate.
We offer free initial consultations to help you understand your rights and legal options. Fraud offences in NSW cover a wide range of dishonest conduct, from internet scams and identity fraud to corporate deception and tax evasion. Whether prosecuted under state or Commonwealth law, these offences carry significant penalties.
Understanding the legal framework and seeking expert legal guidance is essential if you are facing a fraud investigation or charge. ED Legal is here to help you navigate the process and achieve the best possible outcome.
