[drallison]

defraud is the verb form. To defraud is to illegally obtain money from (someone) by deception.

fraud is the noun form. 1) wrongful or criminal deception intended to result in financial or personal gain or 2) a person or thing intended to deceive others, typically by unjustifiably claiming or being credited with accomplishments or qualities.

The English language is changing. Modern usage has promoted some nouns to verbs in informal use, but for many of us, the change is a bit like scratching your fingernails on a blackboard. In a situation like this, where credibility is important, careful attention to usage and spelling is critical.