Is Taiwan Becoming a Fraud Kingdom Due to Light Penalties? Comparison of Fraud Penalties in Taiwan, China, Japan, and South Korea

In recent years, fraud has been rampant in Taiwan, with many people receiving more fraudulent calls than genuine ones daily. Despite multiple government proclamations to eradicate the shame of being called a fraud kingdom, establishing national anti-fraud teams, and amending laws to increase penalties for fraud, there has been no significant improvement as fraudulent techniques evolve rapidly.

Some believe this situation is due to Taiwan’s current laws being too lenient on fraud, making the cost of committing fraud too low. There have even been cases where fraudsters extradited to China were immediately detained upon arrival, while those returned to Taiwan were promptly released.

To assess whether Taiwan's penalties for fraud are truly too lenient, we have compared the criminal penalty standards for fraud in Taiwan, China, Japan, and South Korea as follows:

Criminal Penalties for Fraud in Various Asian Countries Taiwan’s Fraud Penalties

Ordinary Fraud

According to Article 339 of the Criminal Code of the Republic of China, offenders can be sentenced to up to five years of imprisonment, short-term imprisonment, or a fine of up to NT$1,000.

Applicable situations: General fraudulent actions such as deceiving others to obtain property or benefits.

Aggravated Fraud

According to Article 339-1 of the Criminal Code of the Republic of China, offenders can be sentenced to between three and ten years of imprisonment and a fine of up to NT$5 million.

Applicable situations: Using special fraud techniques to obtain property or benefits, or causing significant loss to the victim.

Multiple Fraud

According to Article 339-2 of the Criminal Code of the Republic of China, offenders can be sentenced to between one and seven years of imprisonment and a fine of up to NT$3 million.

Applicable situations: Repeated fraudulent actions causing cumulative loss or obtaining illegal benefits.

Repeat Fraud

According to Article 339-3 of the Criminal Code of the Republic of China, offenders can be sentenced to life imprisonment or more than ten years of imprisonment.

Applicable situations: Fraud leading to the victim’s death or serious injury, constituting extremely serious circumstances.

Organized Fraud

According to Article 339-4 of the Criminal Code of the Republic of China, offenders can be sentenced to between three and ten years of imprisonment and a fine of up to NT$5 million.

Applicable situations: Organizing or directing three or more people to commit fraud collectively, constituting organized crime.

Fraud to Obtain Property

According to Article 339-1 of the Criminal Code of the Republic of China, offenders can be sentenced to between three and ten years of imprisonment and a fine of up to NT$5 million.

Applicable situations: Using fraud to make someone hand over property to oneself or a third party, or to unlawfully obtain property for a third party.

Fraud Causing Property Damage

According to Article 339 of the Criminal Code of the Republic of China, offenders can be sentenced to up to five years of imprisonment, short-term imprisonment, or a fine of up to NT$1,000.

Applicable situations: Using fraud to cause someone’s property to be damaged.

Mainland China’s Fraud Penalties

Ordinary Fraud

According to Article 266 of the Criminal Law of the People’s Republic of China, offenders can be sentenced to up to three years of imprisonment, short-term detention, or control, and may be fined.

Applicable situations: Fraud involving a relatively small amount of money and minor circumstances.

Serious Fraud

According to Article 266 of the Criminal Law of the People’s Republic of China, offenders can be sentenced to between three and ten years of imprisonment and fined.

Applicable situations: Fraud involving a large amount of money or other serious circumstances.

Particularly Serious Fraud

According to Article 266 of the Criminal Law of the People’s Republic of China, offenders can be sentenced to more than ten years of imprisonment or life imprisonment and fined or have their property confiscated.

Applicable situations: Fraud involving an extremely large amount of money or other particularly serious circumstances.

Credit Card Fraud

According to Article 196 of the Criminal Law of the People’s Republic of China, obtaining credit cards by fraudulent means or using credit cards to fraudulently obtain property involving a significant amount of money can result in up to five years of imprisonment or detention and a fine of between 20,000 and 200,000 yuan.

If the amount is huge or there are other serious circumstances, the penalty can be between five and ten years of imprisonment and a fine of between 50,000 and 500,000 yuan.

If the amount is extremely huge or there are other particularly serious circumstances, the penalty can be more than ten years of imprisonment or life imprisonment and a fine of between 50,000 and 500,000 yuan or confiscation of property.

Contract Fraud

According to Article 224 of the Criminal Law of the People’s Republic of China, offenders can be sentenced to up to three years of imprisonment or detention and may be fined.

If the amount is large or there are other serious circumstances, the penalty can be between three and ten years of imprisonment and a fine.

If the amount is extremely large or there are other particularly serious circumstances, the penalty can be more than ten years of imprisonment or life imprisonment and a fine or confiscation of property.

Japan’s Fraud Penalties

Ordinary Fraud

According to Article 246 of the Penal Code of Japan, offenders can be sentenced to up to ten years of imprisonment.

Applicable situations: General fraudulent actions such as deceiving others to obtain property or benefits.

Aggravated Fraud

According to Article 247 of the Penal Code of Japan, offenders can be sentenced to between one and ten years of imprisonment.

Applicable situations: Fraud targeting vulnerable or specially protected individuals (such as the elderly or children) or using special fraud techniques causing significant loss.

Special Fraud

Special fraud involves using phones, emails, or other electronic communication means to commit fraud, commonly seen in "phone scams" or "online fraud."

Depending on the specific circumstances, relevant articles of the Penal Code of Japan and the Act on Specified Commercial Transactions may apply, usually resulting in severe penalties, including imprisonment and fines.

Credit Card Fraud

Depending on the specific circumstances, relevant articles of the Penal Code of Japan (Article 246 on ordinary fraud) and the Credit Card Act may apply, usually resulting in imprisonment and fines.

Bank Fraud

Depending on the specific circumstances, relevant articles of the Penal Code of Japan (Article 246 on ordinary fraud) and the Banking Act may apply, usually resulting in imprisonment and fines.

Organized Fraud

Depending on the specific circumstances, relevant articles of the Penal Code of Japan (Article 246) and the Act on Punishment of Organized Crimes may apply, usually resulting in severe penalties, including long-term imprisonment and high fines.

South Korea’s Fraud Penalties

Ordinary Fraud

According to Article 347 of the Penal Code of the Republic of Korea, offenders can be sentenced to up to ten years of imprisonment or a fine of up to 20 million won.

Applicable situations: Fraudulent actions to obtain property or benefits from others.

Aggravated Fraud

According to Article 347-2 of the Penal Code of the Republic of Korea, offenders can be sentenced to more than ten years of imprisonment or life imprisonment and may be fined.

Applicable situations: Fraud causing significant property loss or other serious circumstances.

Financial Fraud

Financial fraud includes credit card fraud, bank fraud, etc., usually involving financial institutions and instruments.

Depending on the specific circumstances, relevant articles of the Penal Code of the Republic of Korea (Article 347) and the Credit Card Act may apply, resulting in imprisonment, fines, or both, depending on the criminal circumstances and the losses caused.

Attempted Fraud

According to Article 352 of the Penal Code of the Republic of Korea, offenders can be sentenced to up to half of the penalties for fraud.

Applicable situations: Attempted but failed fraud actions.

Telecommunications Fraud

Telecommunications fraud includes using phones, text messages, the internet, etc., to commit fraud. South Korea has specific laws regulating these fraud actions.

Depending on the specific circumstances, relevant articles of the Penal Code of the Republic of Korea (Article 347) and the Telecommunications Business Act may apply, resulting in imprisonment, fines, or both, depending on the criminal circumstances and the losses caused.

Fraud Related to Organized Crime

If the fraud is committed by an organized crime group, the penalties will be more severe.

Depending on the specific circumstances, relevant articles of the Penal Code of the Republic of Korea (Article 347) and the Act on the Prevention of Organized Crime may apply, usually resulting in severe penalties, including long-term imprisonment and high fines.

Taiwan’s Fraud Penalties: Strict in Law, Lax in Implementation

Overall, Taiwan's criminal penalty standards for fraud do not seem as lenient as external opinions suggest. They appear comparable to those in China, Japan, and South Korea.

The issue might lie more in the implementation of these penalties. Police officers who handle numerous fraud cases every year point out that:

Even though Taiwan's laws on fraud penalties are not lenient, the judiciary often lets offenders off lightly.

For instance, the prosecution rate for those selling account books at the district prosecutor's office is less than 20%, and for accomplices, it's less than 60%. In the past ten years, 85% of fraud offenders were sentenced to less than three and a half years, and with successful parole applications, they are often released within two years.

Additionally, many fraudsters are young with no prior criminal records. When caught, they often claim it was their "first time committing fraud," leading judges to grant probation. Due to the judicial system design, judges also worry that heavy sentences may not be supported by higher courts, affecting their performance evaluations and promotions.

Therefore, the more pressing issue might be how to achieve a sufficient deterrent effect in both sentencing and implementation of the laws.