Fraud is committed by anyone who, for unlawful gain, deceives another person or keeps them in error, thereby causing loss. The key element is deception: the victim pays or hands something over because they believe something to be true that is not. Not every unpaid debt or failed business deal is fraud.
Typical situations
- an online advert where the buyer pays but never receives the goods;
- “grandchild” and telephone scams targeting elderly people;
- taking out a loan when the borrower already had no intention or ability to repay;
- investment and business promises with no real performance behind them;
- using a service without intending to pay – the unpaid price also counts as loss.
What is the penalty?
| Loss caused | Penalty (basic case) |
|---|---|
| HUF 50,001 – 500,000 (small) | up to 2 years |
| HUF 500,001 – 5 million (larger) | up to 3 years |
| HUF 5 – 50 million (substantial) | 1–5 years |
| HUF 50 – 500 million (particularly large) | 2–8 years |
| over HUF 500 million (particularly substantial) | 5–10 years |
The penalty is one level higher if the fraud is committed in a criminal conspiracy or on a commercial basis. If the victim’s ability to defend themselves is limited by age or disability, the range is 1–5 years even for a small loss.
What does the defence look at?
- Was there deception? A breach of contract or insolvency is a civil law dispute, not a crime. If a borrower cannot repay when the loan falls due, that alone is not fraud.
- When did the intent arise? If the intention to perform existed at the time of the contract and only failed later, there is no fraud. Regular repayments indicate an intention to repay.
- The amount of the loss: because of the value thresholds, the calculation of every item matters. Partial performance reduces the loss.
- Compensation: paying back the loss can significantly reduce the penalty.
Frequently asked questions
I was reported because I did not repay a loan. Is that fraud? Only if you deceived the lender when taking out the loan. Later inability to pay is not fraud.
What if the victim is a relative of mine? Fraud committed against a relative is punishable only on a private motion; the private motion must be filed within one month of the victim learning of the offence.
Money from a fraud arrived in my bank account – am I liable? That depends on whether you knew about it. Acting as a “money mule” can also raise a suspicion of money laundering – in such cases a defence lawyer is especially important.
Facing criminal proceedings in Hungary? Read more about your defence options and what to do next: Property offences – defence lawyer →
The full text of the relevant provisions of the Hungarian Criminal Code is available on the Hungarian version of this page. This article is for general information only and does not constitute legal advice.
About the author: Dr. László-Tamás Benő is a criminal defense lawyer in Budapest. He graduated in law in 2001 (Pázmány Péter Catholic University) and has worked as a defense lawyer since 2002, representing clients in more than 4,000 criminal cases. Contact →