The difference has to do with trust. Trust is not a condition of fraud, but it is for embezzlement. Fraud generally is when someone uses deceit or a trick to get something that doesn’t belong to them which causes harm or loss to the victim. Fraud can happen without the element of trust for example in internet fraud: the victim typically doesn’t know the criminal. If fraud is committed without an element of trust, it’s not embezzlement. But, for someone to embezzle they must commit fraud by deceiving someone out of their possessions. So, all embezzlement is fraud, but not all fraud is embezzlement.