What defines fraud in a financial context?

Fraud in a financial context is characterized by the deliberate misrepresentation of facts to obtain funds illegally. This definition encompasses actions where an individual intentionally deceives another party, misrepresenting information with the intent to gain something of value, such as money. Fraud typically involves clear elements of deceit, intent to defraud, and can encompass various schemes including false statements, forgery, and embezzlement.

The other options do not fit the definition of fraud. Accidental errors in transaction reporting do not involve intent to deceive; legitimate use of someone else's credit card, unless explicitly authorized by the cardholder, is generally considered theft rather than fraud; and the collection of overdue payments from customers pertains to standard business practices and does not involve any deceit or misrepresentation. Therefore, the focus on intentional wrongdoing that characterizes option C distinctly marks it as the correct definition of fraud in a financial context.