financial fraud

Financial fraud is a collective term for fraud and other forms of economic crime in which the perpetrator, through deception, obtains an unjustified financial advantage for themselves or others. Under Danish law there is no separate legal definition of the concept, but in practice it primarily covers acts that are punishable under the rules on fraud in the Danish Penal Code (straffeloven).

For fraud to exist under the Penal Code § 279, the perpetrator must deliberately create, reinforce or exploit a mistaken belief on the part of the victim in order to obtain an unjustified financial gain. The mistaken belief must be decisive for the victim's acting in a way that causes a financial loss. The subjective element — that is, the intent both to deceive and to obtain the gain — is central to a conviction for fraud.

Financial fraud can take many forms in practice, from simple confidence tricks to complex investment fraud schemes and accounting manipulation. What these have in common is that the perpetrator uses misleading information or exploits the victim's trust in order to achieve financial gain at the expense of others.

In particularly serious cases of fraud — for example where very large sums are involved, where the crime is professionally organised, or where a position of special trust is abused — the penalty may be increased under the Penal Code § 286(2). Whether the fraud is aggravated is determined by an overall assessment of the circumstances of the case, including the size of the amount, the nature of the conduct, and any mitigating or aggravating circumstances.