Fraud in the inducement is when a person tricks another person into acting against their own best interest. For example, if a person claims to be an agent of the IRS, and sends a bill of t$10,000.00 to a person who then pays it to the person who mailed it, this would be fraud in the inducement.
Fraud in the inducement is basically deception that results in a person accidentally causing inancial or other types of losses or damages to themselves. It could involve tricking a person into signing a contract, into voiding a contract, into paying a false bill, or many other types of deceit. A person who is caught committing fraud in the inducement can face criminal charges and various sentences including lengthy jail time. In order for it to be fraud in the inducement, a person must be induced to act to their own detriment, without knowing that they are doing so.