Fraud is one of the most commonly committed crimes. There is a wide range of frauds, new ones are constantly emerging and old ones are evolving and adapting to today’s times. It is therefore no wonder that there is never a shortage of victims. In this article, we look at the types of fraud and how fraud is treated by our legislation. Finally, we will also give you advice on how to defend yourself in the event of fraud.
Fraud is a property crime. It is defined by the Criminal Code as a situation where a person enriches himself or herself or someone else by misleading another person, taking advantage of someone else’s mistake or concealing material facts, and thereby causes damage to someone else’s property that is not insignificant. Not insignificant damage means damage amounting to at least CZK 10 000.
Tip: Learn what a crime is and how we divide crimes.
What exactly does it mean to mislead, to take advantage of someone’s mistake and to conceal a material fact?
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Fraud can take many forms, and more are popping up all the time. Nowadays, as we move our activities into the online world, a variety of online scams are emerging. The most common types of fraud you will come across are:
Tip: One of the popular fake job offers is to assemble pens at home. Learn more about it in our article.
Tip: Fake dating sites work on a similar principle , where you’ll find paid moderators instead of people. Read more about them in our article.
In addition to ordinary fraud, the Criminal Code defines three specific types of fraud, which it also regulates separately (including penalties). These are:
The Criminal Code defines it as a situation in which someone provides false or grossly misrepresented information or conceals material information in connection with the conclusion or amendment of an insurance contract, the settlement of an insurance claim, or the exercise of the right to benefit from insurance or other similar benefits.
An example would be where a property owner deliberately causes a fire in his or her home and subsequently reports the unfortunate event to the insurer. He or she claims insurance benefits for the fire damage while deliberately concealing and covering up the actual circumstances.
Tip: You can also read our article on life insurance and other types of insurance against unexpected events.
A person commits credit fraud if he or she makes false or grossly misleading statements or conceals material information when negotiating a credit agreement or when taking out a credit.
An example of this is where a person uses a false identity when negotiating a credit agreement, gives false personal data and presents false identity documents.
Subsidy fraud is committed by a person who provides false or grossly misleading information or omits material information in an application for a grant, subsidy or repayable financial assistance or contribution.
An example would be a company applying for a research and development grant which submits false information about research projects that have never been carried out in order to obtain funding for other purposes.
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The crime of fraud can be committed by a natural or legal person. The natural person must be over 15 years of age, must be of sound mind (i.e. have the capacity to recognise the wrongfulness of his/her actions and control his/her behaviour) and must be intentionally culpable.
In the case of legal persons, the condition of imputability must also be met. This means that only certain persons connected with the legal person (such as statutory bodies, managing directors, persons in a managerial position or employees acting by example or with the consent of the manager) can commit fraud.
Tip: Read more about criminal liability in our next article.
Fraud is specific in that it cannot be committed through negligence, but always requires proof of intent. At the same time, in the case of fraud, intent cannot be presumed but must be proved.
That intent must be present at the time of the act and must be directed against a protected interest. The protected interest in this context is the victim’s property (whether monetary or in kind). The fraudulent intent must therefore be directed against that protected interest, which means that the perpetrator intends to deliberately damage someone’s property by his conduct.
At the same time, however, the victim himself also plays a role. The victim should act carefully and protect his or her rights and interests. Therefore, if the victim does not take basic steps to protect his or her rights, it may not be fraudulent from a legal point of view. An example of this is when a property owner sells a property to another person and assures them that there are no easements on the property, even though they know full well that they are lying. However, if the buyer fails to verify this status with the Land Registry, then the court may find him or her negligent and declare that no fraud has been committed.
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Penalties vary based on the amount of damage and other circumstances. If the perpetrator has committed damage that is not insignificant, i.e. a minimum value of CZK 10,000, he or she may be sentenced to imprisonment for up to two years, a ban on activities or forfeiture of property. If it is a repeat offence from the last three years, the offender will receive a prison sentence of 6 months to three years. In the case of causing more damage, i.e. at least CZK 100 000, the offender will receive a prison sentence of one to five years.
A prison sentence of two years to eight years is then imposed if the offender has committed fraud:
The offender shall be punished by imprisonment for five to ten years if he/she has caused damage of a large scale (at least CZK 10 million) or if he/she has committed such an act with the intention of enabling or facilitating the commission of a terrorist offence, a terrorist financing offence or a threat of a terrorist offence.
For specific types of offences (i.e. insurance, credit and subsidy fraud), the Criminal Code provides for specific penal rates.
First and foremost, prevention is most important. This consists of general caution and awareness. The most important aspects are:
Tip: Watch out for internet account theft. Our client Mr. Peter, whose email account was stolen, knows about it. Read more in our article.
Unfortunately, you can become avictim of fraud even if you try to do everything correctly and in an informed manner. So what should you do in this case?
Have you found yourself in a situation that requires filing a criminal complaint? We are here to help. We will reliably protect your rights and handle the entire process for you. We’ll handle everything quickly and flawlessly so you don’t have to worry about a thing.
Fraud is a property crime that comes in many different forms, from online fraud to more complex insurance, loan and grant fraud. Its main essence is the deliberate misrepresentation, taking advantage of someone else’s mistake or concealing material facts, resulting in damage. The Criminal Code provides for severe penalties for fraudulent conduct, which vary according to the amount of damage caused and the circumstances of the offence. Crucially, the fraudulent act must be intentional, and the victim should act with due care in order for the fraud to be legally recognised.
Dostupný advokát team of online lawyers will solve it for you.
Have you found yourself in a situation that requires filing a criminal complaint? We are here to help. We will reliably protect your rights and handle the entire process for you. We’ll handle everything quickly and flawlessly so you don’t have to worry about a thing.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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