Preventing Fraud and the Seriousness of Facing Fraud and Theft Charges in the Philippines

Fraud is one of the main causes of disputes. It can be committed through many platforms including mail, wire or the internet. Fraud is the intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Businessowners may have asked this question: Could Fraud ever happen in my organization? No matter how small the organization, fraud could still happen. Fraud can violate civil law, or it may cause no loss of money, property or legal right but still be an element of another civil or criminal wrong.

Internal controls should always be in place. It is important for a business to implement an effective internal control system. How do we prevent fraud in our businesses or organizations? We have listed some considerations below:

  1. Multiple layers of approvals and signatures
  2. Require backup information
  3. Never pre-sign checks
  4. Segregation of duties
  5. (one individual should not be responsible for an entire financial transaction)
  6. Conduct backgroiund checks
  7. Fixes Asset Inventories
  8. Encourage whistleblowers
  9. Automated Controls
  10. Educate employees using discussion of fraud risks and itnernal controls

Commiting fraud could lead you to face serious charges. Many people go to jail for fraud. In the Philippines, any person who shall defraud another by any of the means mentioned herein below shall be punished by:

  • The penalty of prison correccional in its maximum period to prison mayor in its minimum period, if the amount of the fraud is over 12, 000 pesos but does not exceed 22, 000 pesos and if such amount exceeds the latter sum, the penalty provided in this
    paragraph shall be imposed in its maximum period, adding one year
    for each additional 10,000 pesos; but the total penalty which may
    be imposed shall not exceed twenty years. In such cases, and in
    connection with the accessory penalties which may be imposed under
    the provisions of this Code, the penalty shall be termed prision
    mayor or reclusion temporal, as the case may be.
  • The penalty of prision correccional in its minimum and medium periods, if the amount of the fraud is over 6,000 pesos but does not exceed 12,000 pesos
  • The penalty of arresto mayor in its maximum period to prision
    correccional in its minimum period if such amount is over 200 pesos
    but does not exceed 6,000 pesos


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