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Confidence fraud is the reliance on another’s discretion and/or a breach in a relationship of trust resulting in financial loss. It includes a knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment. Auction fraud and non-delivery of payment or merchandise are both types of confidence fraud. The Nigerian letter scam is another example of confidence fraud.
- Internet Crime Complaint Center, 2008 Internet Crime Report, at 16.