The Penal Code of Malaysia is a law that encompasses criminal offenses that are punishable in a Malaysian court, as well as the criminal procedures in Malaysia. It has twenty-three chapters and five hundred and eleven sections (including 37 amendments).

The Malaysia Penal Code covers a wide range of offenses. It begins with an introduction and provides the definition of the terms used in the code.

Elements of Section 420 of the Penal Code (Act 574) Malaysia

S. 420 of the Penal Code Malaysia deals with cheating and dishonestly inducing delivery of property. The section makes it a crime to cheat and deceptively cause a person to deliver their property to another person.

Before a Malaysian Court can convict a person under this section, the prosecution must prove the following elements:

• That the accused intentionally and fraudulently deceived another person
• The deception was done to induce the person to deliver their property
• The property in question was valuable security or could be converted into one
• The person deceived acted under the influence of that deceit the suffered damages as a result of doing so

Common Situations that Fall Under S. 420 of the Penal Code

The following are some common cases that fall under the scope of Section 420 of the Penal Code (Act 574) Malaysia:

#1. Macau Scam

The Macau Scam is a telecommunication fraud. Perpetrators of this fraud use local and international lines, mainly from Hong Kong, to trick victims into handing them large sums of money.

The perpetrators of the Macau scam have different ways to trick their victims. One of the ways is by using a spoofing technique. This is done via a telephone call that appears to be from trusted government officials.

They allege that the name, identification card, and bank account(s) of the target are connected to drug-related crimes and/or money laundering activities.

They use Voice Over Internet Protocol to mask the voice and sound like it came from a trusted local number. Then they ask the target to transfer a sum of money to avoid being caught.

Other tricks include making victims believe that they have won a lucky draw and even staging a kidnapping for ransom.

#2. Land Fraud

Land fraud has become common in recent years in Malaysia. It occurs when scammers fraudulently transfer ownership of a property or piece of land using a forged instrument without the actual owner’s knowledge. A third-party/bona fide purchaser acquired the property.

#3. Bank Account Scam

Here, fraudsters disguise themselves as bank officers. They call claiming that the target has failed to make credit card payments. They then direct the target to contact an official who is allegedly from an established bank. Later on, the target is asked to transfer money to avoid being blacklisted or have their bank accounts frozen.

#4. Ponzi Scheme (also known as “Money Game Scam” by Malaysian)

Ponzi Schemes are investment scams that involve using money collected from new investors to pay off older investors.

These scammers usually promise to invest the money they collect to generate large profits with little to no risk.

The fraudsters involved in this scam don’t plan to invest any money. Their only intent is to pay off the earliest investors to make the scheme look believable.

Ponzi schemes require a consistent flow of funds to sustain itself. It tumbles as soon as the organizers can no longer recruit more members or when a vast proportion of the existing investors decide to cash out.

What to Do If You Become a Victim of Fraud

If you suspect that you have been a victim of fraud, here are some steps to immediately take:

#1: Identify the type of fraud

The kind of fraud that has been committed will determine the first step you need to take. For example, if the scam has to do with the use of your credit card, contact your credit card company to report the unauthorized usage. Know how much money you have lost as part of the scam.

#2. Close all accounts (if necessary)

It might be necessary to close all accounts that have been compromised. You may also have to obtain a new debit or credit card for such accounts.

Contact your financial institution for details on their process for handling fraudulent account activity. Explain that you have been a victim of fraud. Your financial institution will tell you the steps to follow.

#3: Gather your documentation

If you intend to seek compensation in court, you need documentation to support your case. Even if your allegation doesn’t go to court, you’ll need evidence to support whatever claims you have of fraudulent activity.

This requires documents like:

• All written communication from the scammer
• Any documentation of transactions related to the crime.
• Written notes of any action that you’ve taken through the reporting process.

#4: Report it

Report the scam to a law enforcement authority. Don’t just report what you’ve suffered to your credit card company or financial institution. Take the matter to the relevant authorities so that they can investigate and bring the fraudsters to book.

But what if I am the one who has been accused?

Anyone accused of a crime under Section 420 of the Penal Code cannot afford to take the charges lightly. Upon conviction, they face a penalty of imprisonment for at least one year but not more than ten years, as well as whipping and a fine.

So, if you have been accused of committing an offense under this section, these are the steps to take:

#1. Hire an Experienced Criminal Defence Attorney

This is the first and most important thing to do. The longer you wait to hire an experienced attorney, the more your chances of taking a misstep that could alter the course of your life forever.

You need an expert attorney to defend you diligently in court and give you professional legal advice on what to do outside the court.

#2. Do Not Admit Guilt or Fault

Just because someone made allegations doesn’t mean that the allegations are based on actual facts. Many times, fraud charges and allegations are made due to a misunderstanding or miscommunication of what are not really fraudulent facts.

#3. Write Everything Down

Once you have an idea of the charges, write down your version or interpretation of all the relevant facts. Make detailed notes of everything you have that relates to the charges. And then gather any evidence that can prove your innocence.

How Can an Experienced Attorney Help You?

At Alan Kang and Co., we specialize in advising victims and suspects on their rights and remedies. We also help victims draft and lodge their reports to the relevant law enforcement agencies.

We will represent you if you have been cheated in Malaysia, whether in person or on the internet. We will fight aggressively to get you justice and assist you in recovering whatever was taken from you.

We also have a lot of experience defending people accused of cheating. We have represented clients in cases under Section 420 of the Penal Code and have successfully defended them. We have clients that were acquitted and discharged at the end of the prosecution stage.

We have advised and assisted companies in dealing with, and lodging police reports against employees suspected of stealing and criminally breaching the trust of companies’ assets.

If you or someone you know has been charged with cheating under Section 420 of the Penal Code (Act 574) Malaysia, then you need experienced lawyers to defend you adequately. Let us help you with your matter. Contact us today.