Protect Yourself Against Fraud

Data from the General Police Department indicates that fraud-related crimes have been steadily increasing over the years. [1] To avoid becoming a victim of such crimes, it is essential to understand their specific characteristics and how they differ from civil contractual relationships.

A defining element of fraud is the intentional acquisition of another person's property by deceiving or manipulating the victim into a false sense of trust, with the aim of permanently appropriating the property without any intention to repay or compensate. This fraudulent intent clearly distinguishes criminal fraud from civil disputes. [2] Civil disputes arising from contractual relationships typically involve parties exchanging information, asserting claims, and facing risks due to non-performance or breach of obligations. However, such risks—absent deception or intent to defraud—do not amount to criminal fraud.

According to the Supreme Court of Mongolia, fraud is characterized by the following elements:

- Infringement of the legal right to possess, use, or dispose of another person’s property within legally defined limits;

- Intentionally distorting reality through words or actions to mislead the owner or possessor, resulting in the voluntary transfer of property;

- Acquiring the property without providing compensation and converting it to one’s own ownership;

- A level of criminal intent, beyond mere greed and deliberate wrongdoing, where the perpetrator exploits an alleged inability to fulfill contractual obligations as a pretext to unlawfully retain all or part of another’s property or ownership rights;

- Committing specific acts to deceive or betray the owner or possessor to realize the criminal intent. [3]

Fraud is further distinguished from other property-related crimes, such as theft, robbery, extortion, or unauthorized use of a vehicle, in that the owner voluntarily transfers the property or rights based on misplaced trust in the perpetrator. [4]

Therefore, if you are pressured or persuaded to make a hasty decision regarding your property, take extra caution. If a contract is proposed, thoroughly assess whether it is realistic and legally sound, and enforceable. Practicing such diligence is the simplest and most effective way to protect yourself from fraud.

Sources:

[1] Official website of the General Police Department of Mongolia: https://police.gov.mn 

[2] Supreme Court of Mongolia, Decision No. 661 dated December 16, 2019

[3] Supreme Court of Mongolia, Decision No. 538 dated October 23, 2019

[4] S. Gantulga, B. Enkhbold, Criminal Law /Special Part/, 2018

Disclaimer: This article is intended for general informational purposes only and have been prepared in accordance with the laws in effect at the time of writing. For legal advice, please consult a professional attorney.