Which type of fraud involves deceiving someone for personal gain through misrepresentation?

Fraud by misrepresentation specifically involves deceiving an individual or entity to obtain something of value, typically through false statements or deceptive practices. This form of fraud focuses on the act of misrepresenting information to influence another party’s decision, leading them to act in a way that benefits the perpetrator.

This definition aligns precisely with the notion of personal gain through deceit, which is why this choice is the correct answer. In this scenario, the perpetrator may create a false impression or provide misleading information, ultimately leading to a financial or personal advantage.

Other options, while related to fraudulent activities, do not encapsulate the core essence of misrepresentation. Asset misappropriation generally pertains to the theft of an organization’s assets, embezzlement refers to the fraudulent appropriation of funds placed in one’s trust, and collusion involves two or more parties working together to commit a fraudulent act. None of these terms emphasize the specific act of deceiving through misrepresentation for personal gain as clearly as fraud by misrepresentation does.