Fraud has been a prevalent issue throughout human history, and its methods have evolved with advancements in technology and society. From simple cheating to complex financial schemes, fraudulent activities have adapted to exploit vulnerabilities in various systems. Understanding the terminology and activities associated with fraud from an evolutionary perspective can provide valuable insights into its prevalence and impact on individuals, businesses, and society. This paper delves into the historical foundations of fraud, analyses its modern forms, and explores the implications for law enforcement and regulatory measures. Additionally, it examines the social, economic and psychological factors contributing to fraudulent behaviour. To study the complex nature of fraudulent behaviour, Fraud Diamond Model is implemented to analyse three specific frauds as case studies, namely the Harshad Mehta Securities Scam, the Vijay Mallya Kingfisher Fraud and the Nirav Modi Punjab National Bank Scam. A thorough analysis of past experiences helps to devise mitigation methods and understand the need for innovation. In addition to the evolutionary advancement in fraud, it is also essential to understand the rapidly changing and growing Indian financial system. This study provides a holistic understanding of the significance of constant innovation and growth in the financial system.