Process of Filing a Complaint against Fraud

There are different types of fraud prevalent in society and there is a possibility that you fall for them or you might have recently fallen for them then in any one of these circumstances it is very much essential that you know about the types of fraud and how to file a complaint against the same.

Introduction

In general words, Fraud is a practice of cheating and the dishonest inducement of delivering any property (whether tangible or intangible), altering, making or destroying any part or the full valuable security that is signed, sealed or is capable of being converted to a valuable security. The person guilty of committing the fraud will be punished with a fine and imprisonment that can extend up to seven years.

Fraud is also defined under Section 17 of the Indian Contract, Act 1872 which involves the Act of suggestions as fact and which is not true, the active concealment of a fact after having knowledge or the belief of the fact, any Act which can mislead the other party and an omission or Act which has been specifically declared by the law to be fraudulent.

Kinds of Fraud

• ATM Card Fraud: In the case of ATM card fraud the fraudster implants a chip and the hard disk in the ATM machines to obtain the card details of the person.in this kind of fraud, the aggrieved person has the remedy to file a complaint under Section 420 of the Indian Penal Code which has been discussed in detail below.

• Online Shopping Scam: Scammers use lucrative offers and deals to lure customers to make a purchase. For making a complaint against such kinds of fraud the aggrieved person may bring an Action under the Consumer Protection Act.

• Bank Fraud: Bank fraud is committed by scammers by either making lucrative loan offer on which the victims falls prey or even sometimes by misusing the personal information the money is withdrawn from the bank accounts of the individuals. The individuals may bring a complaint to the National Cyber Crime Reporting Portal.

• Phishing: Under this kind of scam the fraudster tries to get access to the confidential information of the victims by making the victims either open an attachment or a link. These scams are generally conducted through emails, texts or messages.

• Identity Thefts: The fraudster uses the personal information of the victims whereby this information is used for the purpose of illegal or immoral purposes. The victims of this scam can take action under Section 420 of the Indian Penal Code or can ever file a complaint to the National Cyber Crime Reporting Portal (the processes have been discussed in detail below).

What are the Essential Ingredients of Fraud under the Indian Penal Code and the Contract Act?

Indian Penal Code

• Unlawful Intention: For committing the Act of fraud it is imperative that the accused should have the deceitful or untrue intention.

• Full knowledge of the Offense: The accused should have the full knowledge and intention of their acts.

• The intention of the Accused: The accused of committing the fraud must have the intention to be fair and mislead the aggrieved person.

• Harm must have been done: The act of the accused must have made the aggrieved person refrain, undertake or hand over the valuable security which would have not been done by the aggrieved person in the course of Action.

Contract Act 1956

• False assertion without belief: It must be proved that the representations made are deceptive to the knowledge of the party and the statement has to be false in fact and in subject. It is important that the statement has to be made by the person interested in the knowledge of it being inaccurate and without the belief of its being true.

• Concealment of the fact: It should be the intentional concealment of the fact. Concealment involves both Active and passive concealment of the fact and it should be an intentional act to stop the others from finding the truth.

• Making a promise without the intention of performing: Where one of the parties to the Contract does not have the intention to fulfill their part of the Contract and at the same time their intention is also to stop the other party from further dealing with others. It is very important for the offence of fraud that the other party must be aware of the fact that they will not be able to perform their part of the Contract.

• Any other Act or Omission declared Fraudulent by Law: Under this provision, any other Act or Omission that has not found solace in any law will be taken into consideration and these acts or omissions are considered fraudulent.

Treatment of Fraud under the Indian Contract Act

The Contracts under which the consent is acquired by fraud are considered voidable under Section 19 of the Contract Act. The aggrieved may bring a civil suit in the court of law. The voidable Contracts are those Contracts where the aggrieved party has the option to either rescind or proceed with the Contract. Upon the rescission of the Contract, the aggrieved party is entitled to reinstate the benefits of Section 64 of the Contract Act and also to recover the damages.

For declaring a Contract voidable it is essential that the below-mentioned conditions must be met:

• The defendant had the full knowledge of the facts and it should result in creating a false impression upon the plaintiff. 

• The defendant’s action should also cause a false impression and the dependency of the plaintiff upon the concealment of the material facts pertaining to the subject matter of the Contract. 

• Lastly, the dependency of the plaintiff incurred damages as a consequence.

Remedies under the Contract Act

• Rescission of the Contract: As we have rightly mentioned the plaintiff has the option to rescind the contract in the case of fraud under Section 19 of the Contract Act. The aggrieved party in such a circumstance can also plead for the performance of the Contract and they should be put in such a position as they would have been if the made representation was true.

• Section 62 of the Contract Act states the provisions where the parties to the contract agree to rescind then in such a circumstance the original contract cannot be performed. On the other hand, Section 64 states that if the contract is rescinded due to it being voidable then in such a circumstance the other party is not required to perform their promise and in the case of rescission the party rescinding the contract is required to restore the benefit (if any) obtained.

• Damages: Damages as the name suggests are the compensation in terms of money for the loss incurred by the aggrieved party and it’s important that the aggrieved party must prove their loss for receiving the damages.

Treatment of Fraud under Section 420 of the Indian Penal Code

• Filing a complaint under Section 420 for any kind of Fraud: The victim of the criminal fraud (the ingredients of which have been discussed above) may bring a complaint under Section 420 by submitting a written complaint to the nearest police station. The complaint must include the nature of the fraud, personal details of the complaint, full details of the accused, the date, time and place where the fraud was committed and the documents as evidence for supporting the claim. The victim is required to make a visit to the nearest police station and request to file the complaint under Section 420 of the Indian Penal Code. The accused will then be made liable for imprisonment which may extend up to three years or a fine.

• Filing a complaint to the Cyber Crime Cell: Apart from the case of normal fraud the victim can also make a visit to the nearest cyber cell police station to file a complaint against the cybercrime fraud.

• Filing of a complaint to the National Cyber Reporting Portal: If the victim does not have the time to make a visit to the cyber cell in such a circumstance, the victim may file an online complaint to the National Cyber Crime Reporting Portal. Alternatively, the victim may also lodge a complaint by calling the number 1930.

Treatment of Online Shopping Fraud

Online shopping fraud is also a kind of breach of Contract which can also be treated under the Contract Act by filing a suit for either Damages or Rescission. However, the victim may also treat it under the Consumer Protection Act, 2019.

In the first instance, the victim is required to bring the fraud to the attention of the platform from where the fraud has been committed thereby requesting them to look into the issue and to provide a redressal of the same. If the platform fails to provide any redressal mechanism the victim may file a complaint to the Jago Grahak Jago Portal which has been established under the provisions of the Consumer Protection Act, 2019 to provide the speedy disposal of the cases.

Conclusion

Fraud is a very wide term that consists in itself of a vast array of permutations and combinations therefore the juicy of the complaint of fraud totally depends upon the gravity and the nature of the offense. In case you have suffered from online shopping fraud then you can either move to consumer court or report the matter to Jago Grahak Jago authorities.

A Tablualr Representation of the Crimes and the Filing Authorities for Complaints

Fraud	Types of the Regulatory Authorities
Mutual Funds, Stock Brokers, Collective Investment Scheme	Securities and Exchange Board of India SCORES (SEBI)
Pension Schemes	Pension Fund Regulatory and Development Authority
Non-Banking Financial Companies (NBFCs), All Commercial Banks, Payment System Participants and Credit Information Companies	Reserve Bank of India
Housing Finance Companies	National Housing Bank (NHB)- GRIDS
Cybercrimes, which also include online financial fraud	National Cybercrime Reporting Portal or by lodging the complaint after calling the National Helpline No- 1930
Insurance Companies	Insurance Regulatory and Development Authority (IRDA)

 

Frequently Asked Questions on Process of Filing a Complaint against Fraud

Q 1. When to call 1930?

Ans 1. The financial cyber frauds can be reported to the national helpline number which is 1930.

Q 2. Can I report a cyber crime on the basis of WhatsApp chat?

Ans 2. Yes, cybercrime is based on WhatsApp chat that can be reported to the cybercrime authorities.

Q3. How do I write a complaint against a police fraud?

Ans 3. Police fraud is also a kind of cybercrime that can be reported to the cyber crime branch.

Q 4. Does cybercrime refund money?

Ans 4. No, cyber crime never refunds the money but instead, it is an authority to report the cyber frauds.

Q 5. How do I file a case against fraud?

Ans 5. A case against fraud can either be filed in the police station by filing an FIR or by visiting the national cybercrime reporting portal

Q6. What happens after cyber complaint?

Ans 6. The cybercrime branch starts an investigation into the matter as soon as the complaint is filed.

Q 7. Can police help get money back?

Ans 7. Yes, the police can help their money in recovering back the money.

Q 8. What are five cyber crimes?

Ans 8. The five cyber crimes involve cyberbullying, online job fraud, cyberstalking, cyber grooming, child pornography, etc.

Q9. Is 1930 available 24 hours?

Ans 9. Yes, 1930 is available 24 hours for reporting any complaints related to cyber crimes.

Q 10. Is FIR mandatory for cybercrime?

Ans 10. No, as soon as the cyber complaint to the national cyber crime reporting portal is filed there is no need to file a separate FIR.