Fraud Compensation Claims in Kuwait: Requirements, Procedures, and Recovering Your Money
By Lawyer Ahmed Al-Fadly / November 08, 2026
Fraud Compensation Claims in Kuwait: Requirements, Procedures, and Recovering Your Money
A person who suffers loss through fraud in Kuwait may seek repayment of their money and compensation for proven damage arising from the incident. A compensation claim requires proof of fault, damage, and a causal connection between them. Establishing criminal fraud requires evidence of deception that induced the victim to hand over money. A delay in repayment alone does not establish fraud.
If you transferred money for a project, investment, or transaction and later discovered that the information provided was misleading, start by preserving your documents and organizing the facts.
This article explains the difference between a criminal complaint and a civil compensation claim, the evidence you may need, and the steps involved in seeking repayment and compensation.
What Is a Fraud Compensation Claim?
A fraud compensation claim is a court action seeking redress for damage caused by fraudulent conduct. The remedies sought may include repayment of the money obtained and compensation for additional proven damage.
Article 231 of the Kuwaiti Penal Code connects fraud with deception that induces a person to hand over money. Examples include presenting a fictitious project, promising imaginary profits, or falsely claiming a particular identity or capacity.
The evidence should therefore explain how the deception occurred and why it caused the victim to pay, rather than merely showing that a bank transfer took place.
The Difference Between Fraud and Failure to Repay a Debt
An unpaid loan, an unsuccessful genuine investment, or a breach of contract does not automatically constitute criminal fraud. These circumstances may nevertheless support a civil claim.
However, forged documents or misleading statements about a project or the recipient’s identity may raise grounds for a criminal investigation where they were used to obtain the money.
The appropriate legal classification depends on the evidence and circumstances of each case.
Requirements for Claiming Compensation for Fraud in Kuwait
Article 227 of the Kuwaiti Civil Code establishes liability for damage caused by a wrongful act. A compensation claim based on this principle should establish the following elements:
1. Fault or Wrongful Conduct
The claimant must identify the conduct attributed to the defendant and explain the deception or wrongdoing involved.
Relevant evidence may include false statements, forged documents, misleading advertisements, or correspondence containing representations that induced payment.
2. Actual Damage
The claimant should explain the loss suffered and substantiate its amount as far as possible.
This may include the outstanding money paid and additional losses that are legally recoverable and supported by evidence.
3. A Causal Connection
The claimant must establish a connection between the wrongful conduct and the damage.
In a fraud case, this includes explaining how the deception influenced the decision to transfer or hand over the money.
4. Identification of the Responsible Party
The claim should identify each defendant and explain their involvement.
Dealing with a company does not automatically establish the personal liability of every employee, manager, or shareholder.
5. Compliance With Procedural Requirements
The claim must comply with the applicable rules on jurisdiction, service of proceedings, filing requirements, and legal time limits.
The Difference Between Repayment and Compensation
Repayment and compensation serve related but distinct purposes. The claim should explain each remedy and avoid seeking recovery twice for the same loss.
Type of Claim | Purpose | Supporting Information |
|---|---|---|
Repayment of the principal | Recovering the money handed over | Amount paid, basis for repayment, and sums already recovered |
Compensation for financial damage | Addressing additional losses or legally recoverable lost profits | Nature and amount of the damage, evidence, and connection to the incident |
Compensation for non-material damage | Addressing legally compensable non-financial harm | Nature of the harm, circumstances, and supporting evidence |
Under Articles 230 and 231 of the Civil Code, compensation may cover actual loss and lost profits where they are a natural consequence of the wrongful act. It may also extend to non-material damage.
However, imaginary profits promised by a fraudster are not automatically recoverable earnings. A legally compensable loss must be identified and proven.
Example: If you paid KWD 10,000 and recovered KWD 2,000, the outstanding principal should be stated as KWD 8,000. Any additional damage should be presented separately with supporting evidence.
Should You Claim Compensation Before the Criminal or Civil Court?
Depending on the circumstances and applicable procedural rules, an injured party may pursue a civil claim before the court hearing the criminal case or bring a separate civil action.
Article 113 of the Criminal Procedure and Trials Law governs compensation claims presented before the criminal court. The court may separate the civil claim or refer it to the competent civil court if considering it would delay the criminal proceedings.
Filing a criminal complaint alone does not automatically result in an award of compensation.
The appropriate route should be selected after reviewing the investigation stage, any earlier claims, and the relationship between the requested compensation and the alleged offence.
Steps for Bringing a Fraud Compensation Claim in Kuwait
1. Preserve Evidence and Prepare a Chronology
Write down:
When the dealings began.
What the other party promised.
When and how payments were made.
When you discovered the alleged deception.
What happened when you requested repayment.
Keep original conversations, attachments, contracts, and advertisements. Avoid relying only on cropped screenshots that omit important context.
2. Review Bank Transfers and Recipient Details
Collect bank statements, payment receipts, transaction references, and available recipient information.
If the transfer was recent, contact your bank promptly to ask whether it can be stopped or recalled. The outcome depends on the circumstances of the transaction.
3. Report the Incident to the Competent Authority
Present the facts and supporting documents to the police station or other competent authority, depending on the nature of the alleged offence.
The investigation route depends on the legal classification and jurisdiction. The Public Prosecution should not be assumed to handle every incident.
For matters within its jurisdiction, the Public Prosecution investigates complaints and decides whether to close the investigation or refer the case for trial according to the findings.
4. Prepare the Civil Claim
The claim should identify:
The claimant and defendant.
The relevant facts.
The legal basis of the claim.
The amount sought as repayment.
Any additional compensation requested.
Amounts already recovered.
Supporting documents.
Accounting or technical issues may require an application for the appointment of an expert.
5. Follow Up on Judgment and Enforcement
Once an enforceable instrument has been obtained, the appropriate enforcement procedures can be pursued.
A judgment does not guarantee immediate payment. Recovery depends on the availability of assets against which enforcement can be taken and completion of the necessary procedures.
Documents Required for a Fraud Compensation Claim
The documents needed will vary, but commonly include:
The claimant’s Civil ID.
A power of attorney where a representative acts on the claimant’s behalf.
Contracts, agreements, acknowledgments, and receipts.
Bank statements and transfer confirmations.
WhatsApp messages, emails, and original attachments.
Advertisements or investment offers connected with the alleged deception.
Details of the other party and the accounts that received the money.
The complaint reference and available investigation records.
Any judgments already issued.
A schedule of amounts paid, recovered, and outstanding.
Evidence supporting additional damage.
Keep the originals and arrange clear copies chronologically, with a short explanation of what each document establishes.
Mistakes That Can Weaken a Claim
Common mistakes include:
Treating every financial default as criminal fraud.
Relying on a bank transfer without explaining the reason for payment.
Deleting messages or losing original documents.
Claiming speculative profits without evidence.
Failing to disclose amounts already recovered.
Signing a settlement or release without understanding its scope.
Delaying legal action because repayment promises continue.
Legal time limits should be reviewed promptly. Their calculation can differ according to the legal basis of the claim and the steps already taken.
How a Lawyer Can Help
A lawyer can assess whether the facts indicate fraud, a civil dispute, or a commercial dispute, and identify the appropriate legal route.
Their work may include reviewing evidence, identifying responsible parties, drafting the complaint and civil claim, responding to the defendant’s arguments, and following up on expert proceedings, hearings, and enforcement within the agreed scope of representation.
Lawyers at Ineqad Law Firm
The following lawyers appear on Ineqad’s published team page. The number below is the firm’s shared office number, not an individual lawyer’s personal number. The lawyer handling a matter is assigned after reviewing the case and availability.
Lawyer | Contact Through the Firm |
|---|---|
Fahad Al-Saeed | +965 6666 8811 |
Riyad Al-Fadhli | +965 6666 8811 |
Ahmed Al-Fadhli | +965 6666 8811 |
Ahmed Mohamed Naguib Abdelhadi | +965 6666 8811 |
Ahmed Salah Al-Serri | +965 6666 8811 |
Frequently Asked Questions
Is a Bank Transfer Alone Enough to Prove Fraud?
A transfer establishes that money moved, but does not by itself explain why it was paid or prove deception. It should be considered alongside the contract, correspondence, and other evidence.
Must I Wait for a Criminal Conviction Before Seeking Compensation?
Not in every case. A separate civil claim may be brought depending on its legal basis. However, its determination may depend on the criminal proceedings where a shared issue must first be resolved.
How Much Compensation Can Be Awarded for Fraud?
There is no standard amount. The claim should identify the outstanding principal and proven damage. The court determines what is legally recoverable.
Does Closing a Criminal Complaint Mean the Civil Claim Is Lost?
Not automatically. The reason for closing the case, available evidence, the legal basis for a civil claim, and relevant time limits should all be examined.
Can Money Be Recovered if the Fraudster Is Outside Kuwait?
This depends on jurisdiction, identifying and serving the individual, the location of their assets, and the rules governing judicial cooperation and enforcement of judgments.
Filing a report alone cannot guarantee recovery.
Legal Consultation for a Fraud Compensation Claim
A well-prepared claim begins by identifying the deception, documenting the movement of money, and separating the request for repayment from claims for additional damage.
You can submit your documents to Ineqad Law Firm for Legal Consultations for an assessment of the case and the appropriate procedures.
Phone and WhatsApp: +965 6666 8811
Website: ineqad.com
Email: info@ineqad.com
Address: 15th Floor, Al-Adl Tower, Fahad Al-Salem Street, Al-Qibla, Kuwait City.
This content is for general information. Its application depends on the facts and documents of each case.
