Final answer:
Fraud can be synonymous with terms like deceit, scam, or swindle, each representing dishonest or illegal acts for personal or financial gain.
Step-by-step explanation:
A synonym for fraud could be deceit, scam, trickery, swindle, or deception, among others. All these words describe an act of dishonesty or illegal behavior intended to result in financial or personal gain. In the context you've provided, the character is grappling with the realization that taking money is an act of theft, which indeed falls under the broad category of fraud. Additionally, the mention of grade inflation implies a form of systemic deceit within the educational system, which can also be considered a type of shocking case of fraud.