Fraudulent Claim

Posted in Marketing and Strategy Terms, Total Reads: 1009

Definition: Fraudulent Claim

Fraudulent claim is the practice of intentionally using a false information or misrepresented facts to file a claim.

These claims are usually motivated by personal or monetary gains or advantage. Some of the examples of Fraud claims are healthcare and insurance fraud, tax fraud, identity theft, advertisements.

In many cases advertisement often give misrepresented and false facts in order to gain the attention of potential consumers and sell their products.


Red Bull

A notice was filed against Red bull for the misleading nature of its tagline “it gives you wings”. According to the complaint it was a fraud claim and increase in the energy level of the consumer was not as considerable as people normally tend to think when they hear the tagline. Red bull lost the case and had to finally settle the case by giving every consumer of its product who had consumed it in last 11 years, a free Red bull.


Hence, this concludes the definition of Fraudulent Claim along with its overview.

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