Fraud by Failing to Disclose Information (Section 3 Fraud Act 2006)

Fraud Act 2006, s.3

Either way
10 years' custody

Definition

A person is in breach of this section if he (a) dishonestly fails to disclose to another person information which he is under a legal duty to disclose, and (b) intends, by failing to disclose the information, (i) to make a gain for himself or another, or (ii) to cause loss to another or to expose another to a risk of loss. (Fraud Act 2006, s.3) A person is guilty of fraud if he is in breach of any of the sections listed in subsection (2) (which provide for different ways of committing the offence). (Fraud Act 2006, s.1(1))

Points to prove

A person
dishonestly
fails to disclose to another person information
which he is under a legal duty to disclose
intending by failing to disclose it to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss

Fraud by Failing to Disclose Information is an offence under s.3 Fraud Act 2006, read with s.1. A person is in breach of s.3 if he dishonestly fails to disclose to another person information which he is under a legal duty to disclose, and intends, by failing to disclose the information, to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss (s.3). A person who is in breach of s.3 is guilty of fraud (s.1(1) and (2)(b)). Maximum sentence: on conviction on indictment, imprisonment for a term not exceeding 10 years or a fine (or both); on summary conviction, imprisonment for a term not exceeding the general limit in a magistrates' court (12 months in the case of an offence triable either way, Sentencing Act 2020 s.224(1A)(b)) or a fine not exceeding the statutory maximum (or both) (s.1(3)).

In practice

This is an either-way offence: it may be tried at the magistrates' court or the Crown Court. Mode of trial depends on the seriousness and the defendant's election. The suspect must be cautioned in accordance with Code C PACE 1984 before any questions about the offence are put to them. Interviews must be audio-recorded (Code E) or, for indictable offences, may be visually recorded (Code F).

Last updated 20 October 2026. Reviewed 20 October 2026

Mode of trial: Either way
Maximum sentence: 10 years' custody
Act and section: Fraud Act 2006, s.3
Power of arrest: A constable may arrest without a warrant anyone who is about to commit an offence, anyone who is in the act of committing an offence, anyone whom he has reasonable grounds for suspecting to be about to commit an offence and anyone whom he has reasonable grounds for suspecting to be committing an offence (s.24(1)); if a constable has reasonable grounds for suspecting that an offence has been committed, he may arrest without a warrant anyone whom he has reasonable grounds to suspect of being guilty of it (s.24(2)); and if an offence has been committed, he may arrest without a warrant anyone who is guilty of the offence or whom he has reasonable grounds for suspecting to be guilty of it (s.24(3)). The power of summary arrest is exercisable only if the constable has reasonable grounds for believing that for any of the reasons mentioned in s.24(5) (to ascertain the person's name or address, to prevent the person causing or suffering physical injury, causing loss of or damage to property, committing an offence against public decency or causing an unlawful obstruction of the highway, to protect a child or other vulnerable person, to allow the prompt and effective investigation of the offence or of the person's conduct, or to prevent any prosecution for the offence being hindered by the person's disappearance) it is necessary to arrest the person in question (s.24(4)) (Police and Criminal Evidence Act 1984, s.24).
Search on arrest: A constable may search any person or vehicle, and anything which is in or on a vehicle, for stolen or prohibited articles, and may detain a person or vehicle for the purpose of such a search, in any place to which the public or any section of the public has access or to which people have ready access but which is not a dwelling (s.1(1) and (2)), but only if he has reasonable grounds for suspecting that he will find stolen or prohibited articles (s.1(3)); an article is prohibited if it is made or adapted for use in the course of or in connection with fraud (contrary to section 1 of the Fraud Act 2006), or is intended by the person having it with him for such use by him or by some other person (s.1(7)(b) and (8)(d)); a constable who discovers such an article in the course of the search may seize it (s.1(6)) (Police and Criminal Evidence Act 1984, s.1). A constable may search an arrested person, where the person has been arrested at a place other than a police station, if the constable has reasonable grounds for believing that the arrested person may present a danger to himself or others (s.32(1)), and in any such case may search the arrested person for anything which he might use to assist him to escape from lawful custody or which might be evidence relating to an offence (s.32(2)(a)) and, if the offence for which he has been arrested is an indictable offence, may enter and search any premises in which he was when arrested or immediately before he was arrested for evidence relating to the offence (s.32(2)(b)) (Police and Criminal Evidence Act 1984, s.32). A constable may enter and search any premises occupied or controlled by a person who is under arrest for an indictable offence, if he has reasonable grounds for suspecting that there is on the premises evidence, other than items subject to legal privilege, that relates to that offence or to some other indictable offence which is connected with or similar to that offence (s.18(1)), and may seize and retain anything for which he may so search (s.18(2)); the power may not be exercised unless an officer of the rank of inspector or above has authorised it in writing, except where the search is made before the person is taken to a police station and the person's presence at a place other than a police station is necessary for the effective investigation of the offence (s.18(4), (5) and (5A)) (Police and Criminal Evidence Act 1984, s.18).
Detention clock: A person shall not be kept in police detention for more than 24 hours without being charged (Police and Criminal Evidence Act 1984, s.41(1)). The offence is an indictable offence, since "indictable offence" means an offence which, if committed by an adult, is triable on indictment, whether it is exclusively so triable or triable either way (Interpretation Act 1978, Schedule 1), so a police officer of the rank of superintendent or above who is responsible for the police station may authorise the keeping of the person in police detention for a period expiring at or before 36 hours after the relevant time where he has reasonable grounds for believing that detention without charge is necessary to secure or preserve evidence relating to the offence or to obtain such evidence by questioning, and that the investigation is being conducted diligently and expeditiously (Police and Criminal Evidence Act 1984, s.42(1)); on an application on oath made by a constable, a magistrates' court may issue a warrant of further detention for such period as it thinks fit, not longer than 36 hours (s.43(1), (11) and (12)), and may extend it, each extension being not longer than 36 hours and not ending later than 96 hours after the relevant time (s.44(1) and (3)).
Source: www.legislation.gov.uk/ukpga/2006/35/section/3