"LEGAL EDUCATION"

First of all, let’s understand what fraud and embezzlement are, and

how to avoid fraud and embezzlement, as well as how to handle them!

Fraud and embezzlement often occur because victims are too trusting, fail to verify documents, or hand over money or goods without clear proof.

1. How can you avoid fraud?

Before making a transaction:

- Identify and verify the identity of the other party.

- Don’t easily trust promises of unrealistic profits.

- Verify the ownership status of the goods or assets being offered.

- Draw up a written agreement outlining the rights and obligations of each party.

- Use a clear and traceable bank account for payments.

- Keep all records of communication, transfers, receipts, contracts, and other documents.

- Do not hand over large sums of money based solely on trust or verbal promises.

2. How can you avoid embezzlement?

Embezzlement is different from fraud. In embezzlement, goods or money may initially be in a person’s lawful possession but are later taken or used unlawfully.

To prevent this:

- Obtain a receipt when handing over money or goods.

- Specify in writing the purpose for which the money or goods are being provided.

- Set a deadline for return.

- Create a record of the handover.

- For high-value assets, monitor and document ownership.

- Do not grant full access to bank accounts, assets, or important documents without a clear legal basis.

3. If you have already become a victim, what should you do?

Don’t delay. Immediately:

1. Secure all evidence.

2. Save transfer records and bank statements.

3. Save WhatsApp chats, emails, communication recordings, contracts, receipts, and related documents.

4. Identify witnesses who are aware of the incident.

5. Create a detailed chronology: who, when, where, what was promised, what was handed over, and the amount of the loss.

6. If a criminal offense is suspected, file a Police Report (LP) and submit preliminary evidence to the investigators. The police are authorized to receive reports, conduct investigations, and gather statements and evidence.

7. For fraud involving bank accounts or financial transactions, file a report as soon as possible through the appropriate channels. The OJK and Bareskrim also operate the Indonesia Anti-Scam Center (IASC) to handle reports of financial sector scams.

4. What should be taken into account?

Not everyone who fails to pay a debt or fulfill an agreement is automatically guilty of fraud or embezzlement. The facts and intent from the outset must be considered, as well as how control over the money or property was obtained.

Since the new Criminal Code (Law No. 1 of 2023) takes effect on January 2, 2026, the current criminal provisions regarding fraud and embezzlement are found, among others, in Articles 492 and 486 of the Criminal Code. In law enforcement practice in 2026, the police have been using both of these articles for cases involving alleged fraud and/or embezzlement.

CONCLUSION

Simple principles:

1. Know the other party.

2. Check the documents.

3. Draw up an agreement.

4. Use traceable transactions.

5. Keep all evidence.

6. Report immediately if a suspected criminal offense occurs.

The more complete the evidence the victim has, the easier it is for investigators to understand the events, the modus operandi, the losses, and the alleged criminal offense.

Thus concludes this Brief Legal Education by:

ADVOCATE RIKHARDUS IKUN, S.H., M.H., C.MSP., C.NSP., C.LFS., C.CPr.

Director of the LAW FIRM JAMES RICHARD AND PARTNERS.