Introduction

Fraud and scams pose serious risks to individuals and businesses alike. Whether it’s a fraudulent investment, a forged contract, or a fake online transaction, the damage can be significant, financially and reputationally. In Egypt, the law offers clear mechanisms to punish fraudulent conduct and protect victims. However, navigating the legal process requires awareness of the relevant provisions, practical steps, and preventive measures.

This article outlines how Egyptian law defines and addresses fraud, the legal remedies available to victims, common types of scams, and how to guard against falling victim.

1. Legal Definition of Fraud in Egyptian Law

Fraud is addressed primarily under the Egyptian Penal Code, which defines it as intentionally deceiving another party to obtain property, money, or an advantage. Article 336 of the Penal Code criminalizes fraud, imposing penalties of imprisonment for any person who uses deceitful means to unlawfully obtain property or induce another to take an action that leads to financial loss.

The law punishes both perpetrators and accomplices, and in certain cases, increased penalties apply if the fraud involves public funds or vulnerable victims.

2. Legal Remedies Available to Victims

Victims of fraud in Egypt have both criminal and civil options:

a) Filing a Criminal Complaint

A criminal complaint can be filed with the Public Prosecution, initiating an investigation and potentially leading to prosecution. If the accused is convicted, they may face imprisonment and restitution orders.

b) Civil Claim for Damages

In parallel, or after the criminal case, victims may file a civil lawsuit seeking compensation for financial loss. The court may order the return of money or property and additional damages for harm suffered.

c) Evidence and Documentation

Victims must preserve all available evidence, bank transfers, messages, emails, contracts, and witness testimony. Egyptian courts place great weight on documented proof, especially in cases involving digital or cross-border scams.

3. Common Types of Scams in Egypt

While scams take many forms, certain types are particularly common:

- Online Fraud and E-commerce Scams: Fake websites, phishing, and fraudulent sellers offering non-existent goods or services.

- Investment and Real Estate Fraud: Promises of high returns, fake real estate deals, or “ghost” companies soliciting funds without licenses.

- Commercial Scams: Forged contracts, impersonation of legitimate companies, or fraud in procurement or supply chain agreements.

- Inheritance and Identity Fraud: Falsifying inheritance rights or misusing powers of attorney to transfer assets.

These schemes often exploit legal gaps or victims lack of due diligence.

4. Preventive Measures and Legal Advice

Preventing fraud is often more effective than remedying it. Businesses and individuals should:

- Conduct due diligence on counterparties before transferring funds or signing contracts.

- Verify licenses, identities, and company registrations, especially in high-value transactions.

- Use formal contracts reviewed by legal counsel and avoid informal or undocumented deals.

- Report suspicious activity immediately to law enforcement or regulatory bodies.

- Consult a lawyer early, particularly in cross-border or unfamiliar transactions.

For businesses, having internal controls, clear approval processes, and staff awareness training is essential.

Conclusion

Fraud is a serious criminal offense under Egyptian law, but victims are not without recourse. Through proper legal action, whether criminal prosecution or civil litigation, recovery and accountability are possible. Yet the most effective defense remains proactive: verifying before trusting, documenting before transferring, and consulting before committing.

In an increasingly digital and fast-paced world, legal awareness is not just a shield, it’s a necessity.