Legal Remedies For Scams

• Published date: 24 March 2023
• Subject Matter: Corporate/Commercial Law, Litigation, Mediation & Arbitration, Criminal Law, Contracts and Commercial Law, Trials & Appeals & Compensation, Professional Negligence, White Collar Crime, Anti-Corruption & Fraud
• Law Firm: Kevin Wu & Associates
• Author: Tan Zu Hao

The commercial crimes investigation department (CCID) of the Royal Malaysian Police (PDRM) reports that between 2020 and May 2022, a total of 71,833 scams totalling more than RM5.2 billion in losses were reported¹.

What are the legal remedies that the public can avail of?

Criminal Offences

1. Cheating

Scamming any person falls within the meaning of cheating under Section 415 of the Penal Code which essentially provides that cheating means deceiving, fraudulently or dishonestly inducing another person to deliver any property to any person, or to consent that any person shall retain any property.

In this regard, whether or not such deception was the sole or main inducement is not relevant in making out an offence. A dishonest concealment of facts is a deception within the meaning of this section. Besides, mere breach of contract is not of itself proof of an original fraudulent intent.

Whoever cheats shall be punished with imprisonment for a term which may extend to 5 years or with fine or with both pursuant to Section 417 of the Penal Code

2. Cheating and dishonestly inducing delivery of property

Section 420 of the Penal Code is a more specific section dealing with cheating and dishonestly inducing delivery of property. Anyone who is found guilty of the aforesaid Section shall be punished with imprisonment for a term which shall not be less than 1 year and not more than 10 years and with whipping, and shall also be liable to fine.

In Sawarn Singh Mehar Singh v. PP², In establishing a case for cheating under Section 420, it must be proven that there was a delivery of property to the scammer; the scammer induced the victim to deliver that property to him; the victim acted upon such inducement in consequence of the scammer's deceit; the scammer acted dishonestly in so inducing the victim to part with the property; and the victim suffered damage or harm as a result of the deceit. In the same case, it was also held that the fact that the transaction involved is allegedly illegal or tainted with illegality does not ipso facto take it out of a cheating charge.

Civil Actions

1. Vitiating contract where consent is caused by fraud or misrepresentation

Obviously, if the victim enters into a contract due to suggestion of untrue fact, active concealment of a fact, promise made without intention of performing it, any other act fitted to deceive, or any such act as the law declares to be fraudulent, such a contract is voidable.

In other words, if the victim comes into an...