Fraud by Good Faith Defense is a legal defense used to protect an individual from criminal liability for fraudulent activities. This type of defense is most often used in cases involving financial fraud, where the accused has claimed they believed in good faith that the activity was legal. The defense argues that the accused had no knowledge or intent to defraud, or that the accused did not intend to cause harm. There are two types of Fraud by Good Faith Defense: Actual Good Faith and Constructive Good Faith. Actual Good Faith involves the accused having an honest belief that their actions were lawful and justified. Constructive Good Faith means that the accused had a reasonable belief, even if they did not actually believe, that their actions were lawful. Both types of defense are based on the accused having no knowledge or intent to commit fraud.