There is a difference between negligent misrepresentation and fraudulent misrepresentation. Any form of fraud is much more serious than dealings involving negligence. Fraudulent falsification occurs when the instigator shows a reckless disregard for the truth of the matter. They purposefully provide information that is false with intent to deceive and harm either their business or another company. Negligent misrepresentation involves businesses and individuals that claim to provide certain skills, but cannot fully follow through on their end. The company at fault often is careless in how he or she represents the business and it is not as intentional as fraud.