Even though a business is risking their reputation and financial well-being when they commit fraud by making a false, misleading, or deceitful claim, many still do it. Victims, however, may be able to prove fraud in court and obtain compensation for their damages.

Everyday people place their trust in businesses when they purchase consumer goods and services. Dishonesty can not only destroy a consumer’s trust but it can also cause a consumer harm. When a consumer suffers injury or damage due to fraud, they can file a lawsuit to obtain compensation.

In order to prove fraud in court, these four elements are needed:

1. There must be a misrepresentation of material fact.
2. The misrepresentation of fact must have been perpetrated by a party that knew it was false.
3. The plaintiff must have relied on the misrepresentation.
4. Injury or loss must have been incurred as a result of the plaintiff relying on the misrepresentation.

All four of these elements must have taken place in order to successfully litigate a case of fraud. In many jurisdictions a “preponderance of evidence” is also needed. This means that the plaintiff has a higher burden of proof and needs to show the court evidence that their version of facts is more credible and convincing than not.

In order to build a strong case and to try to obtain the highest amount of compensation available, a victim should consult with an experienced commercial litigation attorney.