Fraud is one of the biggest fears that a businessman may face when conducts his daily business transactions.

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The definition of Fraud is defined at the Thai Criminal Code at the Sections 341-348:

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In this regard, the following actions conducted by a person can be considered as fraud:

• It has willfully hidden facts pertaining to the transaction that the other party has the right to know under the law.

• It falsely convinces the other participant to execute a legally binding document, or to destroy existing documents, to the benefit of the initiator of the deal.

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• The said representative of a commercial entity has misrepresented himself to the other party, or if the initiator has taken advantage of the other party’s lower intellect. The latter applies if an agent convinces a person who cannot read and right to sign a contract without truthfully explaining the stipulations.

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• The perpetrator had entered into employment deals with people with the intent to either not pay them for their services, or to pay lower wages than what is guaranteed under law or what had been agreed beforehand between the parties.

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• The accused has willfully availed of services and accommodation without the intention and/or the capability to pay for such.

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• The person attempts to collect on an insurance policy and putting the insured property to harm along the way. Arson cases in which the perpetrator torches a property with the intention of collecting on the policy are a good example.

 

A person who has found guilty of these offenses can be imprisoned for at least two years and at most six years. The law also considers offences of this nature as compoundable, which means being found guilty of multiple counts of fraud will lengthen the prison term considerably.