What is defined as an intentional act designed to deceive another party into parting with something of value?

Fraud is characterized as an intentional act that aims to deceive another individual or entity to gain something of value. This definition highlights the two crucial components of fraud: the intent to deceive and the act of material misrepresentation that causes harm or financial loss to the victim.

In the context of healthcare and insurance, fraud can manifest in various forms, such as billing for services that were not performed, falsifying patient information, or misrepresenting the necessity of a medical procedure. These actions not only violate ethical standards but also undermine the trust that is vital in healthcare relationships.

Unlike other options, negligence refers to a failure to exercise appropriate care, which does not involve the intent to deceive. Collusion implies a secret agreement between parties to deceive or defraud, but it describes a different dynamic where multiple parties work together rather than the individual deception seen in fraud. Embezzlement involves the misappropriation of funds placed in one's trust, which is also distinct from the broader act of fraud that can encompass various deceptive practices.

Using this understanding allows individuals to recognize fraud's implications within their respective fields and the ethical necessities of maintaining transparency and truth in all transactions.