GENERALLY, THE OBJECT OF EXCHANGE IN FRAUD CAN BE EITHER CLEARLY EVIDENT OR NEBULOUS AND DIFFICULT TO IDENTIFY. THE FIRST TYPE OF FRAUD INCLUDES COMMODITY OR FUTURES FRAUD, SECURITIES FRAUD, AND FRAUDS INVOLVING NEGOTIABLE PAPERS; THE SECOND FRAUD TYPE INCLUDES TAX EVASION, EMBEZZLEMENT, AND WELFARE CHEATING. STRUCTURAL COMPONENTS OF THE EXCHANGE PROCESS WHICH ARE CONDUCIVE TO FRAUD INCLUDE THE IMBALANCE OF INFORMATION BETWEEN THE VICTIM AND THE OFFENDER, THE COMPETITIVE NATURE OF MODERN EXCHANGE SYSTEMS, THE COMPLEXITY AND SIZE OF MANY INSTITUTIONS, THE INDIRECT QUALITY OF BUSINESS RELATIONS WITHIN THE MODERN INDUSTRIAL SYSTEM, AND THE BUREAUCRATIC ORGANIZATION OF BUSINESS ENTERPRISES. SITUATIONAL FACTORS WHICH MAY ASSIST OFFENDERS IN PERPETRATING FRAUD ARE THE HIERARCHICAL NATURE OF BUSINESS ORGANIZATION, THE OFFENDERS' ACCESS TO COMMUNICATIONS MEDIA FACILITATING CONSTRUCTION OF A FALSE INFORMATIONAL SETTING, THE OFFENDERS' ACCESS TO TECHNOLOGY (ESPECIALLY TO COMPUTERS), AND THE SPHERE OF ECONOMIC ACTIVITY INVOLVING A MASS MARKET THAT IS EASILY VICTIMIZED. THE FORCE OF OFFENDERS' PERSONALITY, PROFESSIONAL STATUS, ORGANIZATIONAL AND MANAGERIAL SKILLS, AND TECHNOLOGICAL EXPERTISE INCREASE THEIR SUCCESS POTENTIAL IN A FRAUD SCHEME AS WELL AS THEIR ACCESS TO INFORMATION CONCERNING THE TRUE BASIS OF THE EXCHANGE. EXTERNAL CONTROLS CAN BE AN IMPORTANT DETERMINANT IN THE DIRECTION OF FRAUD, ESPECIALLY REGARDING MINOR FRAUDULENT ACTIVITY. FURTHER RESEARCH ON BASIC FRAUD CONCEPTS IS RECOMMENDED, PARTICULARLY THE EXTENT TO WHICH THE STRUCTURE OF ECONOMIC AND MARKETING RELATIONS CONTRIBUTES TO FRAUDULENT ACTIVITY AS COMPARED TO INDIVIDUAL BEHAVIOR. REFERENCES ARE PROVIDED.