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It is not unusual in life to be told that their money was taken by the other party for various reasons, that they refused to return it and that they went to the police station to report it, but that it was a civil dispute. Many had no idea what was going on. Can the money be considered fraud only if it reached a certain amount? Why is it that money is also lost, that some are able to pursue cases and others can only sue for rights through the courts themselves
In fact, the vast majority of ordinary people have deep-rooted misperceptions about the criteria for establishing a case of fraud, always using the amount as the sole basis for their determination. Under article 266 of the criminal law of the people's republic of china, which is in force in 2026, and in accordance with the supreme law and the latest standards of judicial practice, the establishment of a criminal case of fraud is never solely a matter of money, but must meet four statutory conditions. None of these four conditions are sufficient, but if one of them is missing, even if the amount involved is higher, it can be classified as a civil economic dispute and it is impossible to initiate criminal proceedings。
This paper will move away from obscure legal terms that are difficult to understand and will be used throughout the course of life in a popular expression that combines the most recent legal provisions of 2026 with the universal law, to tear down these four core conditions, to help draw a clear distinction between criminal fraud and civil disputes, to gain the right to defend rights, and to avoid turning backs and working in vain on the path of rights enforcement。
I. Subjective core element: direct intent of the perpetrator to illegally occupy another person's property
The first and central condition for distinguishing between criminal fraud and civil disputes is the subjective existence of direct intent on the part of the perpetrator to illegally occupy another person's property, which is the most essential line between the two and the pre-condition for the judicial determination of fraud in 2026. Without this subjective intent, even if the other party had committed a breach of contract and had not paid its dues, it could never constitute fraud。
Generally speaking, the purpose of illegal possession is that the perpetrator, from the initial stage of contact with the person concerned, commitment, demand for funds or property, has no real will to comply with the agreement or return the property. All acts and actions are disguised and prepared for the sole purpose of transferring the legal property of the person concerned to his or her own free of charge and without being held responsible and fulfilling the promise。
This subjective intent cannot be directly detected, and in 2026 judicial practice a precise determination was made through the objective conduct of the perpetrator, either of which can be deemed to have an unlawful possession: the first is that the perpetrator deliberately conceals his real financial situation and ability to perform, without a steady income or resources to honour his commitments, but disguises himself as a capable and qualified person, deceiving the trust of the person concerned; the second is that, after obtaining the goods, he does not use them for the purposes for which he was previously agreed, he is used for wanton waste, repayment of personal debts and illegal activities, with complete disregard for the obligation of subsequent performance; the third is that, after obtaining the goods, he deliberately evades communication, changes the means of contact, hides the address of residence and refuses to consult with the person concerned and refuses to return them; and the fourth is that he uses the “dismantling of the east wall” to pay the minor part of the pre-requisite commitment, without any real basis of performance, which is essentially an ongoing appropriation。
In contrast, parties in civil disputes do not have unlawful possession purposes, even in cases of non-payment and non-performance. For example, there is a genuine loan relationship between the two parties, where the borrower is temporarily unable to pay on time for objective reasons such as operating losses and family changes, but always remains active in communicating, actively proposing repayment options and partly paying back; or there is a civil contract between the parties, which is rendered impossible by force majeure factors such as market fluctuations and policy adjustments, and the parties are willing to negotiate a settlement and are willing to assume responsibility for default. These are normal civil disputes, which are fundamentally different from criminal fraud。
Clarifying this condition, it is possible both to strike down fraudulently malicious acts of appropriation and to protect bona fide subjects in normal civil economic transactions, reflecting the fairness and rigour of the law and avoiding the criminalization of ordinary civil defaults。
Ii. Equipment of objective acts: substantive instrument of facts, disappearance of the true
On the basis of an unlawful possession of subjective intent, the second necessary condition is that the perpetrator objectively engages in a material act of deception by falsifying facts and concealing the truth, which is the basis for the offence of fraud and is a key element of the fraud investigation conducted in 2026, and that failure to do so does not constitute fraud。
The deception here is not a slight exaggeration or ambiguity in daily communication, but rather a fabrication of completely non-existent false information against the core facts of the incident or a deliberate attempt to conceal the crucial truth that can influence the decision-making of the person in question, by which the person in question is misinformed and thus voluntarily dispose of his or her own property. In the context of the day-to-day scenes of 2026, these types of substantial fraud are divided into three main categories, all of which are close to living compliance:
The first category consists of false identities, such as impersonating professional practitioners, business directors, service workers, etc., and using false identities to gain the confidence of the parties concerned and to allow them to lay down their guard; the second category consists of fictional projects that create false investment opportunities, liquidity needs, channels of communication, etc., so that the parties mistakenly believe that there is a genuine and viable agreement to deliver their goods; and the third category consists of the concealment of essential information, such as their large debts, mortgaged assets and lack of performance, so that the parties can make erroneous property delivery decisions without knowledge。
It needs to be made clear that there is a clear boundary between a minor exaggeration in civil disputes and the deception of criminal fraud. Exaggeration at the civil level, with minor glorification of non-core details only, was intended to facilitate normal civil transactions and the parties had a genuine will to perform; while criminal fraud was a complete falsification of the facts at the heart of the incident, with no intention of doing so at all, all acts were carried out around the fraudulent taking of property, and judicial practice in 2026 had made the determination of the boundary clear and without confusion。
In short, there is no such targeted material fraud, even if the parties produce property damage, which is not related to criminal fraud and can be resolved only through civil means。
Iii. Element of causation: active disposition of property by the parties on the basis of erroneous perceptions
The third essential condition is the delivery of goods by the parties and the existence of a direct causal link with the deceptive behaviour of the perpetrator, i. E., the fact that the parties have acquired a false perception of the fraud by the perpetrator, leading to the active and voluntary disposition of their own property, a condition that is an important bridge between subjective intent and objective results and a key point that many can easily ignore。
This condition, which has two indivisible meanings, must be met at the same time: first, that the person in question is fully in compliance with the author's fictional facts, the truth is concealed, that there is a clear false perception, that the perpetrator is convinced of the truth and that he or she can fulfil his or her claim upon the delivery of the property, and, secondly, that it is on the basis of this erroneous perception that the person in question makes his or her own decision on the delivery of the property, and that the whole process is free of coercion, coercion, coercion and coercion and is entirely voluntary。
The causal conditions for the establishment of a case of fraud are met only if both levels are met. If the person concerned delivers the property not on the basis of deception by the perpetrator, but for other reasons, such as gift from a person, commitment to invest knowing that there is a risk, and commissioning the chargé d ' affaires, it cannot be considered a fraud even if the subsequent property cannot be returned and is lost. For example, a party who is aware of the risks involved in the investment project described by the other party is still offering funds out of a speculative spirit, and the subsequent loss of funds is an autonomous civil investment risk, unrelated to criminal fraud, and also falls within the category of civil disputes if the person voluntarily gives the other person his or her property out of a personal relationship and makes a subsequent request for repentance。
In judicial practice in 2026, the examination of this causal link was extremely rigorous, with the aim of clarifying the direct link between fraud and property losses, clarifying the boundaries of liability, avoiding the criminalization of civil acts where the individual took the decision and took the risk himself/herself, and safeguarding the accuracy of the application of the law。
Iv. Quantified elements of results:
The last condition concerns the question of the amount of money that is of public concern, i. E. The loss of property suffered by the person in question, the meeting of the legal threshold, or the special case established by law, which is the quantitative threshold for the establishment of a fraud case, as well as the national uniform criteria set out in the 2011 supreme law, the publication of the supreme public prosecutor's office and the interpretation of certain aspects of the specific application of the law in criminal cases of fraud still in force in 2026。
There are two types of cases with regard to the amount criterion: telecommunication network fraud, the application of uniform national standards for the filing of cases, fraud of public and private property worth more than $3,000, i. E., the “larger amount”, the public security organs are required to initiate criminal cases without geographical differences; typologies are common, ranging from $3,000 to $10,000 across the country, and provinces, autonomous regions and municipalities directly under the central government may establish specific performance criteria within the district, taking into account the level of local economic development。
In addition to the figures, the 2026 judicial provisions clearly state that, even if the amount of the fraud fails to meet the above criteria, the public security organs shall, in accordance with the law, establish a criminal case in one of the following special circumstances: fraud against an unspecified majority through means such as text messages, telephone calls, the internet, etc.; fraud against special funds such as disaster relief, risk-taking, favouring, poverty alleviation, immigration, relief, medical care, etc.; fraud against persons with disabilities, elderly persons, minors, disabled persons; and serious consequences for the victims of mental disorders, material damage to property, etc.; and fraud syndicate leaders, multiple frauds and re-frauds after criminal punishment for fraud。
This condition fully explains that the amount is a result indicator of fraud and is not the sole criterion for non-core determination. Criminal proceedings can only be initiated if the first three subjective, behavioural, causal and other conditions are met, and if the amount is met or exceptional circumstances are met. In the absence of any of the first three conditions, even if the amount involved is higher, it can only be dealt with in civil disputes。
V. Practical guidelines of 2026: equipment and effective defence
With the above four core conditions, ordinary people are able to quickly distinguish between criminal fraud and civil disputes without being conversant with the legal provisions. In case of damage to property, they are able to choose precisely the path to defend their rights and avoid blind alarms and futile manoeuvres。
The process of concrete comparison is simple: the first step is to determine whether the other party has an unlawful possession purpose, whether the other party has acted with respect to a disguised identity, a waste of property, a deliberate failure to communicate, a willingness to perform, or a negotiated repayment; the second step is to determine whether the other party has committed a material act of deception, verifying whether the other party has made up a false fact, concealed the core truth, or has only a slight exaggeration, with a real basis for performance; the third step is to determine the cause of the delivery of the property, whether it is an autonomous decision-making, a voluntary donation, or a risk of self-inflicted delivery as a result of the other party's deception; and the fourth step is to check the amount or circumstances of the loss, to see whether the local criteria for the case have been met, or whether it is a statutory special case。
If all four conditions are met, complete evidence such as chat records, money transfer vouchers, false information from the other party must be made available at the first time and reported to the nearest police station, the public security organs shall receive and investigate the case in accordance with the law; if any of the conditions is not met, civil disputes may be brought before the court, through consultation between the parties, mediation between the people, civil action, etc., and the return of property, liability for breach of contract, and protection of their legitimate rights and interests in accordance with the law。
In 2026, the judiciary continued to make a strict distinction between criminal fraud and civil economic disputes, prohibiting criminal interference in civil disputes, firmly combating all types of fraud and criminal offences, ensuring the security of public property and ensuring the orderly conduct of normal civil economic activities and social justice. As an ordinary person, we want to reject the misconception that a fraud case is based only on money, to gain a core of legal commons, to build a sense of rational rights, to be vigilant against damage to property, and to be able to defend the rights and integrity of the law when it comes to problems。
At the same time, in day-to-day economic exchanges, care is taken to ensure a safe and orderly social and legal environment based on the commitment of strangers, the lack of greed, the lack of blind delivery, the prevention of property risks from the source, the protection of legal knowledge of their legitimate rights and interests。
Topical interaction
Have you ever experienced in your life situations where it was difficult to distinguish between fraud and civil disputes? What are the ways in which legal advocacy is normally taught? Messages are to be shared in the comment area to study pits。
