Fraud and Scams in Saudi Arabia

Fraud and scams in Saudi Arabia involve theft and breach of trust, with the primary goal of obtaining unlawful financial gain. These crimes are associated with money and occur through an attack on someone else’s property, whether it involves debt bonds, money, goods, clearance documents, or any movable assets. Fraud is considered an intellectual crime, where the perpetrator uses various deceptive methods to exploit victims. There are specific characteristics of fraud in Saudi Arabia, which lead victims to mistakenly hand over their money to the scammer, who then unlawfully takes control of the funds.

Fraud and Scams in Saudi Arabia

Fraud is a type of financial crime, classified as illicit gain, where the perpetrator takes control of another’s property or money by using deceit, trickery, lies, and fraud to convince and trap the victim into voluntarily handing over their money.

Fraudsters use modern deception methods, whether mental or psychological, and are often highly intelligent individuals with great mental capabilities used to manipulate their victims. The spread of digital platforms has facilitated fraud, allowing scammers to execute their crimes quickly and easily, leaving no trace behind.

The government faces significant challenges in tracking down fraudsters, as they often use fake identities rather than their real ones. As a result, fraud has become one of the most serious and widespread crimes in Saudi society in recent times.

Penalties for Fraud and Scams in Saudi Arabia

The penalty for fraud varies based on the specific crime committed:

• If someone illegally seizes another’s money through fraudulent methods, the penalty is imprisonment for up to seven years and/or a fine of up to five million Saudi riyals.
• For money laundering, the penalty ranges from two to ten years in prison and/or a fine of up to five million Saudi riyals.
• If a person seizes another’s assets or signs documents under a false identity (identity theft), the penalty is three years in prison and/or a fine of two million Saudi riyals.
• If the scammer is a company manager, institution representative, or acting to protect a company’s interests, the fine can reach ten million riyals, and the company may also face a five-year suspension from government projects and procurement contracts.

In certain cases, such as organized criminal groups or the exploitation of minors, the Saudi legislature can impose harsher penalties.

Types of Fraud and Scams in Saudi Arabia

There are several types of fraud, all of which rely on the criminal’s intelligence and the use of illegal methods to deceive victims and steal their money and possessions. The most common types of fraud in Saudi Arabia include:

• Financial Fraud: The scammer takes control of another’s money using deceptive methods, such as convincing victims to invest in a company with the promise of future profits.
• Online Fraud: With the rise of cryptocurrencies and e-commerce, there has been an increase in online scams through fraudulent sales and purchases.
• Social Media Fraud: Scammers use social media platforms to access personal and bank account information, often targeting elderly individuals or those unfamiliar with technology.

Elements of Fraud in Saudi Arabia

Fraud in Saudi Arabia consists of two key elements: the material element and the moral element.

• Material Element:
  • Action: The behavior followed in executing the fraud, relying on deception and lies to gain the victim’s trust and obtain their money or possessions.
  • Result: The harm caused to the victim, who willingly hands over their money due to their trust in the scammer.
  • Causality: The link between the fraudulent act and the resulting harm or loss.
• Moral Element:
  • Specific Intent: The perpetrator’s intention to seize and take control of the victim’s money or property.
  • General Intent: The perpetrator’s awareness that their actions constitute fraud and that they are fully responsible for the consequences.

Public Right in Fraud Cases in Saudi Arabia

Saudi Arabia has enacted strict laws to reduce fraud and protect public rights, as these crimes threaten society, disrupt security and stability, and cause economic and moral damage. According to Article 152 of the Criminal Procedures Law, public rights in fraud cases are not waived, and perpetrators must face imprisonment or fines, even if the victim renounces their private right.

Conclusion

Whether you are a victim or a perpetrator, it is essential to consult an experienced lawyer specializing in fraud cases due to the severe penalties involved and the financial and property losses suffered by victims. Proving such crimes is often extremely difficult, making legal expertise crucial.