謙聖國際法律事務所

1. Why Doesn't Reporting Fraud Automatically Recover Your Money?

Fraud victims often assume that once the police identify or arrest the suspect, the stolen money will automatically be returned. Unfortunately, recovering financial losses is frequently more complicated.

---

1.1 Criminal Investigations and Financial Recovery

After a victim transfers money to a fraudulent account, the funds may quickly pass through multiple bank accounts, be withdrawn in cash, converted into cryptocurrency, or transferred overseas. Police may eventually identify money mules, account holders, or members of a fraud organization, but the original funds may no longer be available.

Although criminal authorities may seize or freeze certain assets and courts may order confiscation or restitution under applicable laws, these mechanisms do not guarantee full compensation for every victim. A victim may still need to pursue a separate civil claim or another legally available recovery procedure.

---

1.2 Why Delays Can Make Compensation Difficult

Even when a victim wins a civil lawsuit, obtaining an enforceable judgment does not guarantee successful collection.

If the defendant has no identifiable bank deposits, wages, real estate, or other attachable assets, compulsory enforcement may recover little or nothing.Delay may also allow assets to be transferred, concealed, or dissipated.

💡Early identification of potential defendants, financial records, and asset information can therefore be critical to an effective recovery strategy.

 

2. Criminal Complaints vs. Civil Lawsuits in Taiwan

A fraud case may involve both criminal and civil legal proceedings.The procedures can support one another, but they should not be treated as interchangeable.

---

2.1 The Purpose of Criminal Proceedings

A criminal complaint allows law enforcement authorities to investigate suspected offenses such as fraud, money laundering, breach of trust, embezzlement, or violations of Taiwan's Banking Act. The investigation may uncover bank transfers, communication records, suspect statements, and other evidence relevant to the victim's financial losses.

➙However, the principal purpose of criminal proceedings is to determine criminal responsibility, not automatically award the victim the full amount of the loss.

---

2.2 Legal Grounds for Civil Compensation

Civil claims may be based on tort liability under Article 184 of Taiwan's Civil Code, joint tort liability under Article 185, unjust enrichment under Article 179, or other applicable legal grounds.

The appropriate legal basis depends on the facts and the relationship between the parties. A victim generally needs to establish the defendant's legally relevant conduct, the amount of the loss, and the required connection between that conduct and the damage. Where multiple defendants are involved, the court must also assess the legal basis for each person's responsibility.

➙Evidence collected during the criminal investigation may help support the civil claim, but the civil court must still examine the applicable elements of liability.

 

3. Who Can Fraud Victims Sue for Compensation?

Fraud operations often involve multiple participants performing different roles. Potential defendants may include individuals who made fraudulent representations, recruited investors, received payments, transferred funds, or knowingly assisted unlawful activities.

However, participation in a transaction does not automatically establish civil liability.

---

3.1 Fraud Organizers, Recruiters, and Platform Operators

In investment fraud or illegal fundraising cases, potentially responsible parties may include organizers, investment recruiters, company representatives, or platform operators.

For example, a person may have promoted guaranteed returns, concealed investment risks, or induced victims to transfer money through false statements. A civil claim must connect the person's conduct to a legally recognized basis of responsibility. Simply holding a corporate title or appearing in promotional materials does not necessarily establish personal liability without supporting evidence.

---

3.2 Bank Account Providers and Money Mules

Fraud cases frequently involve bank accounts used to receive or transfer victims' money. Account providers, cash withdrawal participants, and individuals responsible for transferring funds may become subjects of criminal and civil investigations.

However, not every account holder is automatically liable for the full amount of a fraud scheme. Courts may examine whether the person knowingly participated, negligently facilitated the unlawful conduct under an applicable legal standard, or otherwise satisfied the elements of civil liability. Relevant evidence may include account-opening records, transaction histories, messages, withdrawal activity, and the person's actual role.

⚠️Where joint tort liability is established, Article 185 of the Civil Code may become relevant.

 

4. What Is Provisional Attachment in Taiwan?

Provisional attachment is a civil asset-preservation procedure designed to protect the possibility of future compulsory enforcement.

It is particularly important in fraud cases where a potential defendant may transfer or conceal property before the victim obtains a final judgment.

---

4.1 How Asset Preservation Works

Under Article 522 of Taiwan's Code of Civil Procedure, a creditor may apply for provisional attachment to preserve the future enforcement of a monetary claim or a claim convertible into money. The procedure allows a court, when statutory requirements are satisfied, to authorize provisional restrictions on a debtor's assets.

For example, a victim may seek provisional attachment of identifiable bank deposits, real estate, or other property belonging to a legally responsible party. However, provisional attachment does not itself determine the final merits of the compensation claim.It also does not immediately transfer the attached assets to the victim. The purpose is to preserve property so that a later enforceable judgment has a better chance of producing actual recovery.

---

4.2 Requirements, Security Deposits, and Limitations

Under Articles 523 and 526 of the Code of Civil Procedure, an applicant generally must provide a preliminary showing of the monetary claim and the need for provisional attachment. The court considers whether future compulsory enforcement may become impossible or substantially difficult.

Depending on the evidence and circumstances, the court may require the applicant to provide security. A security deposit is not necessarily a fixed percentage of the claim; the amount depends on the court's order and applicable procedural requirements. Provisional attachment also involves costs and potential liability if the measure is improperly obtained.

➙For these reasons, an application should be based on a realistic assessment of the available evidence, recoverable assets, potential defendants, and financial costs.

 

5. Criminal Incidental Civil Actions vs. Ordinary Civil Lawsuits

Victims often hear that they can file a civil compensation claim within criminal proceedings. In Taiwan, this procedure is known as a criminal incidental civil action.

However, it has important limitations concerning timing, defendants, and the connection between the criminal conduct and the claimed damage.

---

5.1 When a Criminal Incidental Civil Action May Be Appropriate

Under Article 487 of Taiwan's Code of Criminal Procedure, a person who suffers damage from a criminal offense may, within the legally permitted scope, file an incidental civil action seeking compensation from the criminal defendant and other persons legally responsible for the damage. The filing period is governed by Article 488 and related procedural provisions.

This option may reduce certain procedural burdens when the criminal case and the compensation claim involve substantially overlapping facts.

However, a criminal incidental civil action is not automatically available immediately after filing a police report.

➙The victim must consider the procedural stage, the criminal charges, and whether the proposed defendants and claims fall within the permissible scope.

---

5.2 When a Separate Civil Lawsuit May Be Necessary

An ordinary civil lawsuit may be more suitable when the compensation dispute involves additional parties, different legal grounds, complex contractual relationships, or claims that cannot properly be pursued through an incidental civil action.

Investment fraud cases may involve company representatives, intermediaries, investment contracts, or multiple layers of financial transactions. A separate civil action may provide a more appropriate procedural framework for addressing those issues.

Victims should also consider filing deadlines, litigation costs, jurisdiction, and the relationship between civil proceedings and any ongoing criminal investigation.

🚨Neither procedure automatically guarantees successful recovery.

 

6. What Evidence Should Fraud Victims Preserve?

Successful fraud compensation claims depend heavily on clear, organized evidence. Victims should preserve original records whenever possible and arrange them chronologically.

---

6.1 Payment Records and Digital Communications

Important evidence may include bank transfer receipts, transaction statements, receiving account information, LINE or Telegram conversations, Facebook or Instagram messages, text messages, emails, and screenshots of fraudulent websites.

Victims should also retain advertisements, investment promises, loan agreements, employment offers, and other materials explaining why they transferred money. Police report documentation, case numbers, notices from prosecutors, and court documents should be preserved.

💡A detailed timeline showing when each representation was made, when payments occurred, and how the other party responded can help establish causation and damages.

---

6.2 Cryptocurrency Transactions and Investment Evidence

Cryptocurrency scams may involve wallet addresses, transaction hashes, exchange records, blockchain transfers, and screenshots of investment platforms. Victims should preserve records of deposits, purported profits, withdrawal requests, failed withdrawals, and demands for additional payments. These materials may help investigators and legal counsel reconstruct the movement of assets.

However, identifying a blockchain transaction does not necessarily establish the real-world identity of the recipient or guarantee recovery. Additional evidence may be required to connect digital wallets, exchanges, and individuals to the alleged fraud.

 

7. How Can Victims Enforce a Judgment and Recover Their Money?

Obtaining a favorable civil judgment is an important step, but financial recovery may require further legal action. A victim must distinguish between establishing a right to compensation and actually collecting the money.

---

7.1 Compulsory Enforcement Against Assets

Once a victim obtains an enforceable legal title, compulsory enforcement may be available under Taiwan's Compulsory Enforcement Act. Depending on the circumstances, enforcement may target bank deposits, wages, real estate, vehicles, or other legally attachable property.

However, the debtor must have identifiable assets that can lawfully be reached. If assets have already disappeared or belong to unrelated third parties, enforcement may be unsuccessful.

➙This is why early asset preservation and careful identification of responsible parties are important.

---

7.2 Settlement and Recovery Strategies

Settlement negotiations may provide another route to compensation.

In some cases, an agreement involving repayment schedules, security arrangements, or enforceable legal documentation may offer practical advantages over prolonged litigation. However, victims should carefully evaluate whether the proposed terms are realistic and enforceable. A promise to repay does not guarantee that funds will actually be recovered.

Legal counsel can assess whether a proposed settlement adequately protects the victim's rights and whether further civil proceedings or enforcement measures remain necessary.

 

8. Frequently Asked Questions About Fraud Compensation in Taiwan

Possibly, but a police report does not automatically result in repayment. Recovery may depend on asset tracing, criminal restitution procedures, civil compensation claims, settlement, or compulsory enforcement.

Yes, if the evidence establishes an applicable civil cause of action. Potential legal grounds may include tort liability, joint tort liability, unjust enrichment, or contractual claims.

Provisional attachment is a court-authorized asset-preservation measure intended to protect future enforcement of a monetary claim. It does not itself award compensation or immediately return the money.

In qualifying circumstances, provisional attachment may allow assets to be preserved before a final civil judgment. Court approval, supporting evidence, and possibly security are required.

Potentially. Liability depends on the account holder's conduct, knowledge, involvement, and the applicable legal requirements. Receiving funds into an account does not automatically establish responsibility for the entire fraud.

A criminal incidental civil action is filed within qualifying criminal proceedings and is subject to procedural and substantive limits. An ordinary civil lawsuit is a separate civil proceeding that may accommodate different defendants or legal claims.

For tort damages, Article 197 of the Civil Code generally provides a two-year limitation period from knowledge of the damage and the person liable, and a ten-year period from the tortious act, subject to applicable rules and exceptions. Other causes of action may have different limitation periods.

Even with a favorable judgment, recovery may be difficult if the debtor has no identifiable attachable property. Victims may need to investigate other legally responsible parties and consider available enforcement options.

Not necessarily. Waiting may increase the risk of asset dissipation or limitation-period issues. The appropriate timing depends on the evidence, available defendants, procedural requirements, and whether asset preservation is necessary.

 

9. Conclusion: Act Early to Preserve Your Right to Compensation

Fraud victims in Taiwan should understand that criminal punishment and financial compensation are separate legal objectives.

Reporting an investment scam, cryptocurrency fraud, online dating scam, or other financial crime is important, but it does not automatically restore the victim's losses.A comprehensive recovery strategy may involve identifying legally responsible parties, preserving financial and digital evidence, evaluating civil claims, applying for provisional attachment, negotiating repayment, and pursuing compulsory enforcement. The earlier these issues are assessed, the greater the opportunity to preserve evidence and identify assets before they disappear.

 

🧑🏻‍⚖️chiensheng International Law Firm provides English-language legal assistance for foreigners involved in fraud, scam, aggravated fraud, money laundering, cryptocurrency, bank account, and related criminal cases in Taiwan, with services available through our Taipei, Taoyuan, and Kaohsiung offices.

 

【CHIEN SHENG LAW FIRM】

• LINE Online Legal Consultation:：@lawuicc001（Click to Consult）
• Appointment by Phone:：(03)⠀3150-034
• Payment Methods: Cash｜Credit Card｜Bank Transfer

 

【Learn More】

• Facebook： 謙聖國際法律事務所
• Instagram：chien.sheng_