Frauds in Poland

About

Fraud is, in common parlance, knowingly misleading someone or exploiting someone’s mistake for one’s own benefit. Victims of the crime of fraud are both individuals and businesses or financial institutions. Perpetrators often use false data, hide behind straw man or use other sophisticated methods, making them difficult to trace. New and more creative methods of criminals are emerging with the development of technology and new payment instruments, as well as in connection with various anomalies in the market or the world creating ideal conditions for this.

Cryptocurrency fraud is a crime related to cryptocurrencies, including so-called investment fraud. In this type of crime, scammers take advantage of the increased interest in investments in virtual currencies and impersonate investment platforms offering quick and high profits. The scale of cryptocurrency fraud both internationally and in Poland is increasing, with losses in the largest thefts of digital assets amounting to hundreds of millions of dollars (Ronin Network, Japan’s Coincheck and Mt. Gox). In Poland, the most common cryptocurrency fraud is the impersonation of an employee of Binance – the largest cryptocurrency exchange in the world.

Ponzi scheme is a type of investment scam in which existing investors pay out investment returns with capital from new investors. In this type of scam, the scammer profits in the form of commissions on “investments” or simply by disappearing with investors’ funds. Investors are promised a high return with little or no risk. With new deposits from investors, the scammers pay out some of the funds to previous investors and keep some for themselves. With little or no legitimate sources of profit, this practice requires a steady flow of new funds. The scheme collapses when attracting new investors becomes difficult or when too many investors withdraw funds.

Pyramid scheme, like Pozni’s scheme, is based on deceiving unsuspecting people through the promise of substantial income or investment returns, but there are fundamental differences between the two. A pyramid scheme is based on acquiring new people, who in turn will continue to acquire more people and so on. Those at the top of the pyramid reap the greatest profits, and because of their higher earnings, they are able to encourage more people to join. As more people join, a larger sum of money enters the pyramid, which is transferred to those higher up the hierarchy, and those at the bottom lose out. A pyramid scheme can look like the legitimate practice of multi-level marketing also known as network marketing (MLM). What distinguishes MLM from a pyramid scheme is that profits are tied to real product sales and commissions. In the case of a pyramid scheme, profits are tied to the number of people acquired. In Poland, organizing or directing a pyramid-type promotional system is considered an act of unfair competition, which is punishable by imprisonment from 6 months to 8 years.

Our services within this specialization include:

  • legal counseling to compensate for the damage caused by the crime, including the drafting of criminal notices;
  • representation of victimized entities in criminal and criminal-economic proceedings at the preparatory and judicial proceedings stage;
  • support in ongoing contacts with law enforcement agencies and the judiciary;
  • conducting internal investigations in cases of suspected fraud;
  • conducting trainings.

We direct our offer to:

  • entities victimized by fraud, including cryptocurrency fraud;
  • participants in pyramid schemes and Ponzi schemes;
  • companies seeking expert legal assistance in bringing MLMs into compliance with current regulations;
  • companies suspecting fraud in their structures.
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Summary – Fraud

Fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. This crime can violate civil law or criminal law. In some cases it does not cause no loss of money, property, or legal right but still be an element of another civil or criminal wrong.

Victims of different type of fraud are both individuals and businesses or financial institutions..

Type of fraud

  • identity fraud
  • card fraud
  • cheque fraud
  • tax fraud
  • false representation / misrepresentation
  • mortgage fraud
  • benefit fraud
  • economic crime
  • embezzlement
  • computer misuse
  • falsification
  • insurance fraud
  • counterfeit

Fraudulent Action means any unlawfully or illegally intentional act or omission that misleads, or attempts to mislead, another person (victims of fraud: an individual or an organisation), in order to obtain a financial or other benefit or to avoid an obligation or incurring an obligation.

Fraud – purpose

Fraud may be defined as either a civil wrong or a criminal act.

People commit fraud for monetary gain or to get other benefits, for example obtain a document, a driver’s license.

Protect Your Business from Frauds with Expert Support

Take control of your company’s security today. Our team of experienced legal professionals is ready to provide tailored solutions to prevent, manage, and resolve fraud-related challenges. Whether you need strategic compliance frameworks, crisis management support, or representation in complex proceedings, we are here to stand by your side every step of the way.

By partnering with us, you’ll not only protect your business from financial and reputational damage but also strengthen trust with your stakeholders, investors, and business partners.

Don’t wait until it’s too late. Contact us today to schedule a comprehensive consultation and let us help you safeguard your company’s future. Together, we can build a secure and resilient foundation for long-term success.

Any questions?

Paweł Gołębiewski

Attorney-at-law, Head of International Criminal Law Practice

+48 509 211 000

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the experts
Maciej Zaborowski

Maciej Zaborowski

Advocate, Managing Partner

Paweł Gołębiewski

Paweł Gołębiewski

Attorney-at-law, Head of International Criminal Law Practice

FAQ

What is fraud under Polish law?

Fraud generally involves knowingly misleading or deceiving a person or entity to gain a financial or other advantage unlawfully. It can be committed against individuals, businesses, or financial institutions by providing false information, concealing facts, or exploiting another’s mistake. Fraud is a criminal offense and includes a wide range of schemes aimed at causing financial harm or obtaining property illegally.

What are the most common types of fraud in Poland?

Common fraud types include:

  • Cryptocurrency fraud: Scammers impersonate representatives of cryptocurrency exchanges or investment platforms, promising high profits and then misappropriating investor funds. This is a growing problem linked to the rising popularity of digital assets.
  • Ponzi schemes: Investment scams where returns to earlier investors are paid using capital from new investors, creating an unsustainable cycle that eventually collapses. Fraudsters profit by commissions or by disappearing with the money.
  • Pyramid schemes: These rely on recruiting new participants who pay to join, with the earnings of top participants funded by fees from new recruits. Unlike legitimate multi-level marketing (MLM), pyramid schemes focus purely on recruitment rather than actual product sales. Organizing pyramid schemes is a criminal offense punishable by imprisonment.
  • Other forms include general deceptive practices, identity fraud, and falsification, often involving sophisticated methods to evade detection.

How does cryptocurrency fraud typically occur in Poland?

Fraudsters often pretend to represent well-known cryptocurrency platforms like Binance, offering fake investment opportunities or access to exclusive deals. Victims are persuaded to deposit funds, which then disappear along with the scammers. This is facilitated by the anonymity and lack of regulation in many aspects of the cryptocurrency market.

What legal consequences do fraudsters face in Poland?

  • Criminal charges can lead to imprisonment, fines, and confiscation of illicit gains.
  • Sentences vary depending on the fraud’s scale and severity but can be substantial, especially for organized fraud or large financial damage.
  • Directors or organizers of fraudulent schemes such as pyramid schemes face penalties from 6 months to 8 years imprisonment.
  • Courts may also impose restitution orders requiring repayment to victims.

How can victims of fraud seek help in Poland?

Victims can:

  • Report fraud to law enforcement agencies to initiate criminal investigations.
  • Work with legal experts specialized in criminal and economic crime to file complaints or join proceedings as injured parties.
  • Use internal corporate channels for whistleblowing if fraud is suspected within an organization.
  • Seek civil claims for compensation alongside or following criminal prosecution.

What preventive measures can companies take against fraud?

  • Conduct thorough internal investigations when fraud is suspected.
  • Implement criminal compliance programs including employee training, auditing, and monitoring systems.
  • Establish clear whistleblower protections and secure channels for reporting irregularities.
  • Regularly review and strengthen internal controls over financial and operational procedures.

Who are the typical victims and targets of fraud in Poland?

  • Individual investors, especially in cryptocurrencies and investment schemes.
  • Companies that may be defrauded internally or externally through economic crimes.
  • Participants who unknowingly join pyramid or Ponzi schemes.
  • Financial institutions and banks targeted by sophisticated fraudsters.

How do authorities in Poland investigate and prosecute fraud?

  • Specialized economic crime units in the police and prosecution service handle complex fraud cases.
  • Investigations often involve financial audits, forensic accounting, and cooperation with international agencies if fraud crosses borders.
  • Prosecutors may conduct preparatory proceedings before bringing cases to courts.

What is the difference between a Ponzi scheme and a pyramid scheme?

  • Ponzi schemes pay returns to early investors with funds from new investors, focusing on misleading about investment profits without direct recruitment benefits.
  • Pyramid schemes rely explicitly on recruiting new members who pay fees, with earnings dependent primarily on recruitment rather than product sales. In Poland, organizing pyramid schemes is explicitly illegal and subject to severe penalties.

How can legal counsel assist fraud victims in Poland?

Legal professionals provide:

  • Guidance on filing criminal reports and civil claims.
  • Representation during criminal investigations and court proceedings.
  • Coordination of internal investigations and recovery efforts.
  • Support in interactions with law enforcement and judicial authorities.
  • Assistance with compensation claims and protecting victim rights.