WHAT CONSTITUTES FRAUD UNDER TURKISH LAW?

WHAT IS CRIMINAL FRAUD IN TURKEY?

The criminal fraud in Turkey is defined as a criminal offense in which a person, through fraudulent behavior, deceives another and gains an unfair benefit for themselves or a third party, to the detriment of the deceived person or another individual. This offense is regulated under Article 157 of the Turkish Penal Code and is classified among crimes against property. It aims to protect not only individual ownership but also societal trust.

For the crime of fraud to occur in Turkey, three essential elements must coexist:

1. The perpetrator must engage in fraudulent acts;
2. The victim must be deceived by these acts and take action as a result of this deception;
3. This action must result in damage to the victim and an unjust benefit to the perpetrator or a third party.

Simple fraud crime in Turkey occurs when the perpetrator deceives another through fraudulent behavior and thereby gains an unfair benefit for themselves or someone else, at the expense of the victim or a third party.

Aggravated fraud crime in Turkey, on the other hand, occurs when the crime is committed through the misuse of public institutions, religious beliefs, professional titles, social trust relationships, or technological tools. These circumstances make the crime more serious and increase the severity of the penalty.

Additionally, for the crime of fraud to be established in Turkey, the perpetrator must obtain an unjust benefit. If the perpetrator merely engages in preparatory acts and has not yet initiated actions aimed at obtaining an unfair benefit, the crime is not considered to have reached the stage of attempt. To speak of an attempt, the preparatory acts must be completed, and direct execution aimed at obtaining the benefit must have commenced.

In this respect, the crime of fraud in Turkey poses a threat not only to individual property but also to the stability of economic order and trust-based relationships. It carries both legal and social consequences.

WHAT ARE THE ELEMENTS OF THE FRAUD CRIME IN TURKEY?

The crime of fraud in Turkey, regulated under Articles 157 and subsequent provisions of the Turkish Penal Code, is a type of offense committed against property. It materializes when the perpetrator, through fraudulent conduct, deceives the victim and thereby obtains an unfair benefit for themselves or another, to the detriment of the victim or a third party.

As a freely-acted crime, fraud in Turkey can be committed in various forms, but its realization always requires the presence of three fundamental elements: fraudulent behavior, susceptibility to deception, and damage.

This legal structure ensures that not every misleading act qualifies as criminal fraud in Turkey—only those that involve a deliberate scheme, a deceived victim, and an unlawful gain.

1- Fraudulent Behavior (Act Element)

The defining feature of the fraud crime in Turkey is deception, which must go beyond a simple lie or omission. Fraudulent behavior involves acts that are planned, deceptive, and sufficiently intense to impair the victim’s free will. These actions must prevent the victim from exercising their ability to assess and analyze the situation.

Fraud is the key element that distinguishes the fraud crime in Turkey from other offenses against property. Merely making a false statement or concealing the truth is not sufficient. The deception must serve as a tool for causing harm and must be carried out with a deliberate intent to deceive.

For example, obtaining a power of attorney from someone through a scheme and then selling their immovable property to a third party can constitute both the fraud crime in Turkey and a civil claim for the annulment and re-registration of the property title based on abuse of power of attorney.

2- Susceptibility to Deception (Subjective Element)

The fraudulent acts must be capable of deceiving the victim. This element is evaluated based on the specific circumstances of the case, including the victim’s social and cultural background and the context in which the act occurred. As confirmed by court rulings and academic opinion in Turkey, whether the fraud was actually deceptive should be determined in relation to the individual characteristics of the victim.

Therefore, this assessment under fraud under Turkish law should not be purely objective, but must consider the specific situation of the victim. Simple lies that a person of average diligence could easily recognize are not considered fraudulent acts within the meaning of the law. What matters is whether the fraudulent act had the power to influence the victim’s free will.

3- Damage and Unjust Benefit (Material Result)

For the crime of criminal fraud in Turkey to be completed, there must be a measurable decrease in the victim’s or a third party’s assets (damage), and a corresponding unjust increase in the perpetrator’s or another person’s assets (benefit). There must be a direct causal link between this economic damage and the unjust benefit.

Damage must not be limited to a subjective sense of loss but must represent an objectively measurable economic harm. Similarly, the benefit must be an unlawfully acquired interest protected by law. The perpetrator must have acted with the intention of causing harm to the victim and gaining a benefit for themselves or another.

Criminal fraud in Turkey is a significant offense aimed at protecting individual property and maintaining economic trust within society. Its realization depends on the presence of three core components: a fraudulent act, the act’s capacity to deceive the victim, and the resulting unjust benefit and economic harm.

In the absence of these elements, the conduct does not constitute a criminal offense of fraud and should instead be evaluated under civil law provisions.

DEFINITION OF SIMPLE FRAUD OFFENSE UNDER TURKISH LAW (TPC ARTICLE 157)

The offense of simple fraud in Turkey, regulated under Article 157 of the Turkish Penal Code, is classified among crimes against property and occurs when the perpetrator deceives the victim through fraudulent behavior and, as a result of this deception, obtains an unjust benefit for themselves or another person to the detriment of the victim or a third party. The fundamental element of the offense is the unlawful gain achieved by manipulating the victim’s will through fraud.

In Turkey, the offense of simple fraud is an optional-conduct crime and can be committed in various forms. However, in every specific case, three essential elements must be present for the offense to be established: fraudulent behavior, capacity to deceive, and unjust benefit.

Fraudulent behavior must be intense, planned, and skillful to the extent that it disables the victim’s decision-making mechanism. In this context, not every lie told to the victim constitutes fraud; it is required that the accompanying behaviors eliminate the victim’s ability to examine and question the situation.

Fraudulent behavior must be capable of deceiving the victim. This element should be evaluated within the specific conditions of each case and by considering the personal characteristics of the victim. In Turkey, the legislator has not set a general standard on this matter, leaving the discretion to the judicial authorities.

To complete the offense, a loss must arise as a result of the fraudulent behaviors, and an unjust benefit must be obtained in favor of the perpetrator or a third party. The element of loss refers to a loss of economic value, while the element of benefit refers to the unlawful gain obtained by the perpetrator. There must be an appropriate causal link between the loss and the perpetrator’s act.

The fundamental criterion distinguishing the offense of simple fraud from aggravated fraud is the means used by the perpetrator. If the perpetrator, without using elements such as religious sentiments, public institutions, the status of public officials, information systems, or banking/credit institutions, acts with fraudulent behavior solely based on personal capabilities, the act remains within the scope of simple fraud. Otherwise, the act will be evaluated as aggravated fraud under Article 158 of the Turkish Penal Code.

In light of the decisions of the Court of Cassation in Turkey; actions such as receiving gifts by hiding the fact of being married, requesting money on the pretext of retrieving accidentally deposited funds, or obtaining a phone or money by abusing someone’s trust have been evaluated within the scope of simple fraud. These examples also demonstrate how broad the application of the offense can be.

According to Article 157 of the Turkish Penal Code, the sanction for the offense of simple fraud in Turkey is imprisonment from one to five years and a judicial fine up to five thousand days. In cases where the offense remains at the attempt stage, a reduction in the sentence may be applied by taking into account the degree of intent and the extent of execution.

DEFINITION OF AGGRAVATED FRAUD OFFENSE UNDER TURKISH LAW (TPC ARTICLE 158)

The offense of aggravated fraud in Turkey, regulated under Article 158 of the Turkish Penal Code, shares the basic elements of simple fraud but constitutes a more serious crime due to the use of specific tools or exploitation of certain circumstances by the offender to gain the victim’s trust or to facilitate the deception. In Turkey, this type of fraud occurs when the offender employs more elaborate and generally more effective methods to commit the fraudulent act.

In aggravated fraud, the perpetrator exploits the victim’s weaknesses, such as perception, trust, or vulnerability, thereby enhancing the impact of the fraudulent behavior. Thus, for the offense to be constituted, not only must fraud and deception exist, but also certain qualified elements must be present, such as the use of specific instruments or the exploitation of the victim’s special condition.

Examples of these qualified circumstances under the Turkish law include the exploitation of religious feelings, the victim’s difficult situation or reduced perception, the use or targeting of public institutions, exploitation of media platforms, use of information systems or financial institutions, fraud committed during commercial activities, abuse of trust associated with a profession, and unjustified collection of insurance payments.

These elements distinguish aggravated fraud from simple fraud and increase the social harm of the crime. Because the methods used in aggravated fraud are more severe and have a broader societal impact, the penalties are generally harsher.

Each form of aggravated fraud involves specific conditions that must be evaluated separately in light of the particular facts of the case. Therefore, each qualified circumstance should be addressed in detail under individual headings.

• Fraud Committed by Exploiting Religious Beliefs (TPC 158/1-a)

In Turkey, for fraud to be deemed committed by exploiting religion, religious beliefs or feelings must be used as a tool of deception. The perpetrator must obtain an unjust benefit by abusing religious values or the victims’ intentions to do good.

It does not matter which religion or sect is involved. Collecting unjustified donations under the guise of religious obligations like zakat or fitrah qualifies under this provision. The Supreme Court rulings emphasize that deception based on religious beliefs and feelings constitutes this crime.

• Fraud Committed by Exploiting a Person’s Difficult or Dangerous Situation (TPC 158/1-b)

In this aggravated form, the dangerous or difficult conditions the victim is in are considered as an element that aggravates the crime. In situations such as natural disasters, accidents, or illness, the victim’s helplessness and vulnerability facilitate the perpetrator’s fraudulent behavior.

The Supreme Court examines whether the victim is in a difficult situation based on the circumstances of the case, using both objective and subjective criteria, and makes an assessment taking the concrete conditions into account.

• Fraud Exploiting a Person’s Weakened Perception Ability (TPC 158/1-c)

The victim’s weakened ability to perceive due to old age, mental illness, intoxication, mental disability, or similar reasons is considered an aggravated circumstance in the perpetrator’s obtaining of unlawful benefit. In such cases, committing fraud knowing the victim’s insufficient cognitive capacity is an element that increases the penalty for the crime. Supreme Court rulings clearly state that victims with impaired perception abilities must be especially protected.

• Fraud Involving the Use of Public Institutions (TPC 158/1-d)

If the crime of fraud in Turkey is committed using the material assets of public institutions or organizations (such as official documents, printed papers, identification cards), this situation is considered an aggravated circumstance. This provision also covers the use of professional organizations with public institution status, political parties, associations, and foundations as tools. Supreme Court precedents clearly state that when such tools are used for fraudulent purposes, Article 158/1-d of the Turkish Penal Code must be applied.

• Fraud to the Detriment of Public Institutions (TPC 158/1-e)

In this form of the crime, direct harm is caused to public institutions and organizations. The act must be committed with the intent to damage the property of public institutions. Situations such as the unlawful appropriation of public resources or the failure to repay a debt fall within this scope. However, if there is no public harm, this aggravated circumstance cannot be considered to have occurred.

• Fraud Committed Through Information Systems (TPC 158/1-f)

When computers, the internet, social media, or similar information systems are used as tools in fraud, the perpetrator is held responsible for aggravated fraud in Turkey. The important point in this provision is not the information system itself, but its use as a tool to deceive people.

Acts committed through these systems can cause harm more quickly and more widely compared to classic fraud. Supreme Court rulings evaluate frauds involving the use of information systems within the scope of Article 158 of the Turkish Penal Code.

• Fraud Committed Using Banks or Credit Institutions (TPC 158/1-f)

When banks or credit institutions are used as tools in fraud, this aggravated circumstance comes into effect. However, the important point here is the direct use of the bank or credit institution as a tool; mere use as a payment method is not considered within this scope.

If the perpetrator deceives a bank employee through fraud and commits fraud relying on the bank’s trust, the crime becomes aggravated. Supreme Court rulings assess the role of the bank or credit institution in the case concretely when delivering their judgment.

• Fraud Facilitated by the Use of Mass Media (TPC 158/1-g)

• Abuse of Professional Trust by Self-Employed Professionals (TPC 158/1-i)

In Turkey, when self-employed professionals such as lawyers, doctors, or engineers commit fraud by abusing the trust and respect associated with their profession, the offense is considered aggravated fraud. Self-employment typically involves personal labor and expertise rather than commercial activity. Therefore, fraudulent acts committed by professionals not operating under a commercial enterprise fall within the scope of this provision.

• Aggravated Fraud for the Purpose of Obtaining Credit (TPC 158/1-j)

This offense occurs when an individual manipulates financial data or submits misleading documents to secure a loan from banks or credit institutions. Examples include applying for a loan using fake identification or altering financial statements to meet loan criteria. Such actions constitute aggravated fraud in Turkey.

• Aggravated Fraud to Collect Insurance Payments (TPC 158/1-k)

Submitting false documents or making fraudulent claims to unjustly receive payments from insurance companies is considered aggravated fraud under this provision. The offender may be the policyholder or any person attempting to profit unlawfully from the insurance policy. However, preparatory acts that occur before the claim is made do not constitute a punishable offense.

• Fraud by Pretending to Be a Public Official, Bank, Insurance, or Credit Institution Employee (TPC 158/1-l)

Frauds committed by the perpetrator by creating trust through falsely representing themselves as a public official or an employee of a financial institution are punished under this provision.

This regulation was added to the law especially to combat common methods such as telephone fraud. Even if the perpetrator does not actually hold these positions, using these titles as a means of deception reduces the likelihood that the victim will question them and makes the act more convincing.

• Fraud by Claiming to Have Ties with Public Officials (TPC 158/2)

This provision applies when an individual falsely claims to have influence or connections with public officials and demands money or benefits to have a task completed. It is irrelevant whether the official exists or if the task can actually be done; the key element is the deception of the victim through such claims.

• Fraud to Collect a Claim Based on a Legal Relationship (TPC 159)

In cases of fraud committed for the purpose of collecting a receivable based on a legal relationship, prosecution depends on the victim’s complaint. For the crime to be established, there must be a valid legal relationship between the perpetrator and the victim that was established prior to the fraudulent act. Transactions made later through deceit alone do not create this relationship.

Upon the victim’s complaint, the perpetrator may be sentenced to imprisonment from 6 months to 1 year or to a judicial fine; the court may impose only one of these two penalties. According to Supreme Court rulings, in order to determine whether this crime has occurred, the receivable relationship and its grounds between the parties must be examined in detail, and an expert examination should be conducted if necessary.

HOW TO FILE A FRAUD CASE IN TURKEY?

Fraud is a criminal offense committed when a person deceives another through fraudulent acts, causing them or a third party to dispose of property. Upon the discovery of such an offense, a criminal investigation may be initiated. In the Turkish criminal justice system, victims do not personally file lawsuits for fraud; instead, a public lawsuit is conducted by the public prosecutor’s office.

The victim must file a complaint with the Public Prosecutor’s Office or law enforcement authorities by submitting a petition containing information about the offense. Following this complaint, the investigation process begins, and if sufficient evidence is found, the prosecutor initiates a public lawsuit.

Below are the stages involved in filing a fraud case in Turkey:

• Criminal Complaint Regarding Fraud in Turkey

Criminal fraud in Turkey is classified as a property crime under the Turkish Penal Code (Law No. 5237) and does not require a formal complaint for prosecution. Therefore, once the public prosecutor becomes aware of the offense, an investigation must be initiated ex officio.

Although criminal fraud in Turkey is not subject to a complaint period, the statute of limitations still applies. The limitation period is 8 years for simple fraud and 15 years for aggravated (qualified) fraud. Accordingly, the offense must be reported to the Public Prosecutor’s Office within the relevant limitation period.

To ensure their legal rights are protected, it is essential for victims of criminal fraud in Turkey to promptly report the offense to the police or the Public Prosecutor’s Office.

• Offer of Reconciliation

Simple fraud (Article 157 of the TPC) is subject to the reconciliation procedure. Before initiating an investigation or prosecution, reconciliation must be attempted. Since simple fraud is prosecuted on behalf of the public, mediation does not apply—only reconciliation is applicable. If an agreement is reached between the parties, the prosecution is dropped. If reconciliation fails, the criminal proceedings continue.

However, aggravated fraud (Article 158 of the TPC) is not subject to reconciliation. In such cases, the investigation and prosecution proceed directly under fraud under Turkish law.

• Investigation Phase in Fraud Cases in Turkey

The investigation phase for fraud in Turkey begins either upon a complaint or ex officio by the prosecutor. During the investigation, evidence related to the incident is collected. Witnesses may be heard, security camera footage and bank transactions may be examined, and expert reports may be requested.

Once sufficient evidence is gathered, the public prosecutor prepares an indictment and submits it to the competent criminal court. This process reflects the standard approach to handling fraud under Turkish law.

• Trial Phase in Fraud Cases in Turkey

When the court accepts the indictment, the fraud case officially begins. During the trial, both the victim and the defendant present their statements, witnesses may be heard, and all available evidence is submitted to the court. At the end of the trial, the public prosecutor presents their final opinion (known as the “mütalaa”).

The judge then evaluates all evidence and defenses and decides whether to acquit or convict the defendant. In the case of conviction, the court determines the sentence, which may include imprisonment, suspension of the sentence, a deferment of the verdict (HAGB), or conversion to a judicial fine, depending on the circumstances of the case.

JURISDICTION AND STATUTE OF LIMITATIONS IN FRAUD CASES IN TURKEY

According to Article 66 of the Turkish Penal Code (TPC), the statute of limitations for fraud cases in Turkey varies depending on the nature of the offense. For simple fraud, the statute of limitations is 8 years, whereas for qualified (aggravated) fraud, this period extends to 15 years. The statute of limitations begins on the date the crime is committed. Once this period expires, no criminal lawsuit can be filed, and if a lawsuit has already been initiated, it cannot result in a conviction.

However, exceptions that suspend or interrupt the statute of limitations are also regulated by law. Therefore, the statute of limitations must be assessed individually for each specific case, and consulting a legal professional is crucial.

When determining the competent court, the classification of the offense is also taken into account. For simple fraud (TPC Article 157), the Criminal Court of First Instance is competent, while qualified fraud (TPC Article 158) falls under the jurisdiction of the High Criminal Court. Identifying the proper court is critical to the validity of legal proceedings.

WHAT IS THE PENALTY FOR FRAUD IN TURKEY?

Under the Turkish Penal Code, fraud is defined as a person using deceitful conduct to mislead another and thereby obtaining benefit for themselves or a third party, to the detriment of the victim or another party. The law distinguishes between simple and qualified forms of fraud, each carrying different penalties.

Fraud penalties in Turkey vary depending on the nature and severity of the offense. Simple fraud typically results in lighter sentences, while qualified (aggravated) fraud, which involves aggravating factors such as abuse of trust or use of official position, leads to more severe punishments.

Fraud holds significant importance in the legal system for its punitive and deterrent purposes. If fraud is committed in conjunction with other crimes, such as insult or blackmail, these offenses are also punished separately under the law.

• Penalty for Simple Fraud Under Turkish Law (TPC Article 157)

According to Article 157 of the TPC, the penalty for simple fraud in Turkey is imprisonment from one to five years, and an additional judicial fine up to 5,000 days. Both penalties are imposed concurrently; the judge does not choose between them—the offender receives both prison and a judicial fine.

The amount of the judicial fine is determined by the court based on the material harm caused by the offense. This aims to reflect the legal value of the benefit gained through the crime and to effectively compensate the victim.

• Penalty for Qualified Fraud Under Turkish Law (TPC Article 158)

Aggravated fraud occurs when the perpetrator commits the fraud using certain means or against specific persons, leading to more severe consequences. For acts committed until November 24, 2016, the penalty was imprisonment from two to seven years. However, following the legal amendment on that date, Article 158 of the Turkish Penal Code was revised by Law No. 6763, increasing the penalty for qualified fraud in Turkey to imprisonment from three to ten years and a judicial fine of up to five thousand days.

Moreover, when specifically stipulated aggravating factors exist under the law, the minimum penalty is raised further. For example, if the crime is committed to the detriment of public institutions, or by using trust-based institutions such as information systems or banks, the minimum imprisonment term is four years, and the judicial fine must be at least twice the amount of the benefit obtained from the crime. These regulations impose aggravated sanctions aimed at preventing systematic and professional commission of fraud.

As stated in the Supreme Court Criminal General Assembly’s decision numbered 2013/51, the judicial fine imposed in aggravated fraud cases must first be determined as a number of days, and if necessary, be subject to discretionary reduction under Article 52 of the Turkish Penal Code. However, if the resulting amount is less than twice the benefit obtained from the crime, this amount must be mandatorily increased. Thus, the legislator aims both to deter the crime and to ensure legal certainty.

Within this framework, fraud offenses are of particular importance within the scope of criminal law protection, as they directly target the economic assets of the victims and may result in severe consequences. The legislator has established an effective sanction regime in accordance with the principles of proportionality and justice, by varying the penalty amounts based on the method of commission, the means used, and the victim’s status.

• Aggravating Circumstances Increasing the Penalty in Fraud Crimes (TPC Article 158/3)

Since November 24, 2016, with the enactment of Law No. 6763, penalties for fraud offenses committed in Turkey are increased if certain aggravating conditions are present. These increases apply to both simple fraud (TPC Article 157) and qualified fraud (TPC Article 158).

1- Commission of the Fraud Crime by Three or More Persons

If the fraud crime in Turkey is committed jointly by at least three people, the penalty is increased by half.

In this case:

• For simple fraud, the penalty is imprisonment from 1.5 years to 7.5 years, and a judicial fine of up to 500 days.
• For qualified fraud, the penalty is imprisonment from 4.5 years to 15 years, and a judicial fine of up to 500 days.

If the fraud crime is committed under the following conditions, the minimum penalty is at least 6 years of imprisonment:

• Causing damage to public institutions
• Using information systems, banks, or credit institutions as instruments
• Obtaining unjust credit or insurance payments
• Impersonating a public official or an employee of a bank/insurance company

2- Commission of the Fraud Crime as Part of Organized Crime Activity

If the fraud is committed within the framework of an organization established for the purpose of committing crimes, the penalty is doubled.

In this case:

• For simple fraud, the penalty is imprisonment from 2 years to 10 years, and a judicial fine of up to 10,000 days.
• For qualified fraud, the penalty is imprisonment from 6 years to 20 years, and a judicial fine of up to 10,000 days.

If the aggravating circumstances listed above are combined with organized crime activity, the minimum penalty increases to at least 8 years.

With these regulations, factors such as the number of participants and organized criminal structure are considered serious aggravating circumstances directly affecting the sanction for fraud offenses in Turkey.

• Effective Repentance (Penalty Reduction) in Fraud Crimes

Effective repentance applies when the offender shows remorse and compensates the victim’s loss. Fraud is among the property crimes where effective repentance can be applied.

If the offender:

• Compensates the damage during the investigation phase (before prosecution), the penalty may be reduced by two-thirds (2/3).
• Compensates the damage during the prosecution phase (after the lawsuit has started but before judgment), the penalty may be reduced by one-half (1/2).

Compensation means returning the property subject to the crime or paying its value.

The provisions for effective repentance apply not only to the principal offender but also to those who instigate or assist in the crime.

• Postponement of Penalty, Conversion to Judicial Fine, and Deferred Judgment (HAGB) in Fraud Crimes

Sanctions imposed for the fraud crime in Turkey can be adapted through various criminal procedure mechanisms in line with the principle of individualization in the criminal justice system. Within this framework, applications such as suspension of the sentence, conversion to a judicial fine, and postponement of the announcement of the verdict may come into play.

A judicial fine is a type of sanction that can be imposed instead of or alongside imprisonment. Particularly in cases of simple fraud, the court may convert imprisonment into a judicial fine if certain legal conditions are met.

Postponement of the Announcement of the Verdict (HAGB) is a criminal procedure institution whereby the conviction given against the defendant is deferred from being announced for a specified supervision period, and if the defendant complies with obligations during this period, the verdict is annulled. This measure can be legally applied to both simple and aggravated fraud offenses.

Suspension of the sentence is an individualization mechanism through which the enforcement of an imprisonment sentence given by the court is postponed under certain conditions. If the convicted person behaves well during the supervision period within social life, the sentence is considered served. Suspension of sentences imposed for fraud offenses is also possible when the relevant conditions are met.

These mechanisms aim to apply the punishment in a more constructive and socially integrative manner by considering the perpetrator’s personal characteristics, the nature of the crime, and their behavior during the trial process.