Estafa: Meaning in Philippine Law
Quick answer
Estafa is the Philippine crime of swindling. A person commits estafa when he or she cheats another out of money or property by abusing trust or by using a lie or trick. It is punished by Article 315 of the Revised Penal Code, whose heading is "Swindling (estafa)".
Also called: Swindling
What does Article 315 say?
The article opens with this rule:
Any person who shall defraud another by any of the means mentioned herein below shall be punished by:
It then lists the means. The two most common are:
- Abuse of confidence. The person received money, goods or other property "in trust or on commission, or for administration", or with a duty to deliver or return it, and then misused it or denied receiving it (Article 315, paragraph 1(b)).
- Deceit. The person used a fake name or falsely claimed to have power, influence, qualifications, property, credit, an agency, a business or imaginary transactions (paragraph 2(a)). The law says the lie must come before or at the same time as the fraud.
A third group covers other fraudulent acts, such as tricking someone into signing a document (paragraph 3).
What must be proven in estafa by abuse of confidence?
In Corpuz v. People (2014), the Supreme Court listed four elements:
- the property was received in trust, on commission, for administration or with a duty to return it;
- the offender misused it or denied receiving it;
- this caused prejudice to another person;
- the offended party made a demand.
The Court added that demand need not be formal and may be verbal.
Is an unpaid loan estafa?
Not by itself. Article III, Section 20 of the 1987 Constitution says no person shall be imprisoned for debt. A borrower who simply fails to pay on time, with no lie at the start and no property held in trust, does not commit estafa by that failure alone. The creditor can still collect through a civil case. See Can you go to jail for unpaid debt?.
See also the comparison theft vs estafa.
Example
Made-up illustration: Liza gives Ana bags worth ₱30,000 on consignment. Ana must sell them within a month and pay Liza, or return them. Ana sells the bags, keeps the money and later says she never received them. This may be estafa by abuse of confidence.
Compare Carlo, also made up, who borrows ₱50,000 from his cousin and just fails to pay on time. Without a lie at the start or property held in trust, the means listed in Article 315 are missing.
How heavy is the penalty?
The penalty depends on the amount defrauded, under the brackets set by Republic Act No. 10951. Estafa by a bouncing check (Article 315, paragraph 2(d)) has a separate, heavier scale in the same article. See Estafa penalty in the Philippines and the table of estafa penalties by amount. For online scams, see Scammed online: what to do.
Which provisions use this term?
Frequently asked questions
What is estafa in simple words?
Estafa is cheating another person out of money or property, either by misusing or denying what you received in trust, or by a lie or trick used to get it. It is punished by Article 315 of the Revised Penal Code.
Is not paying a loan estafa?
Not by itself. The 1987 Constitution says no person shall be imprisoned for debt. Estafa needs one of the means listed in Article 315, such as a lie told before or when the money was given, or money held in trust and then misused.
Does the victim need to send a formal demand letter?
For estafa by abuse of confidence, the Supreme Court said in Corpuz v. People (2014) that demand need not be formal and may be verbal. A lawyer can check whether the demand made in a specific case is enough.
How heavy is the penalty for estafa?
It depends on the amount and on the means used. Under Republic Act No. 10951 (2017), estafa of up to ₱40,000 is generally punished by arresto mayor in its medium and maximum periods, and the penalty rises in brackets as the amount grows. Estafa by a bouncing check (paragraph 2(d)) has its own, heavier scale.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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