If you have fallen victim to a scam, it is crucial to know that you can take legal action against the person or entity that caused you harm.
Panama is widely recognized in Latin America and around the world as a land of opportunities. Its dollarized economy, the Panama Canal, international banking hub, and strategic logistics position make it attractive for both foreign investors and local entrepreneurs. However, these same characteristics also attract individuals and organizations seeking to exploit others through scams and financial fraud.
Fraudulent activities harm not only individuals but also the confidence in Panama’s financial and commercial systems. A person who loses their savings in a scam may hesitate to invest again, negatively affecting the economy. Combating fraud is, therefore, not only a matter of personal justice but also of social and economic protection.
In this context, the role of fraud lawyers in Panama becomes essential. They not only file criminal complaints and represent victims but also educate, advise, and warn people on how to identify potential scams before falling prey.
Although not always widely reported, scams in Panama are more common than many realize. The most frequent types include:
Real Estate Scams: Sale of non-existent properties, double-selling of real estate, phantom development projects.
Financial Scams: Pyramid schemes, fake investments, fraudulent loans.
Digital Scams: Banking phishing, cryptocurrency frauds, fake trading platforms.
Personal Scams: Business promises, identity theft, emotional manipulation.
Every year, Panamanian authorities receive hundreds of fraud reports. Yet, many cases remain unreported due to embarrassment, fear of being judged for “falling for it,” or lack of knowledge about legal rights.
A fraud lawyer in Panama plays a key role in explaining to victims that they are not to blame for being deceived—the perpetrator is always responsible, and the law exists to protect citizens from such acts.
Article 220 of the Penal Code defines fraud:
“Whoever, by deceit, obtains or seeks to obtain an illicit benefit to the detriment of another shall be punished with imprisonment of one to four years.”
This article highlights three main elements of the crime:
Intentional deception: The act must be deliberate.
Illicit benefit: The scammer gains money, goods, or advantages.
Economic harm: The victim suffers a financial loss.
The law also increases penalties for abuses of trust or internet-based crimes.
Article 221 adds aggravating circumstances, such as:
Losses exceeding $100,000.
Responsibility by company executives or managers.
Targeting public institutions or charities.
Use of someone else’s identity to commit the fraud.
These provisions allow lawyers in Panama to seek higher penalties and pursue civil actions to recover losses.
Panama distinguishes between similar financial crimes:
Fraud: Broadly, any deceit for economic gain.
Scam (Estafa): A specific type of fraud with direct deception and immediate financial harm.
Embezzlement: Misusing funds legitimately entrusted to someone.
Breach of trust: Similar to embezzlement but tied to personal or professional relationships.
Forgery: Creating or altering documents for personal gain.
Example:
Selling a non-existent house = scam + forgery.
Accountant misappropriating client funds = embezzlement.
Pyramid schemes with hundreds of investors = organized fraud and scam.
Knowing the differences helps lawyers define legal strategy and increase chances of success.
Scammers don’t act randomly—they use psychological manipulation and persuasion. Common tactics include:
Building trust: Present as experts, businessmen, or advisors; use technical jargon; create fake professional profiles.
Promise extraordinary benefits: High returns, easy credit, properties at bargain prices.
Create urgency: Limited-time offers to prevent reflection.
Show false proof: Fake contracts, testimonials, or bank statements.
Disappear after the crime: Block communication, close fake offices.
Recognizing these patterns helps prevent fraud. If the scam has already occurred, the next step is to contact a lawyer.
Criminology studies identify common traits:
Charismatic and empathetic.
Manipulative and perceptive of weaknesses.
Intelligent, planning complex schemes.
Persistent, patient, and calculated.
Often operate in organized networks with defined roles.
Case 1: Phantom real estate project
Hundreds paid deposits for apartments that didn’t exist, discovering the land wasn’t legally registered.
Case 2: Non-existent loan
A victim paid $2,000 for an alleged $50,000 loan; the lender vanished.
Case 3: Cryptocurrency scam
An online platform paid small initial returns, then disappeared with all funds.
In all cases, victims relied on fraud lawyers in Panama for legal action and recovery.
A fraud lawyer in Panama offers strategic, multidimensional support:
Guide victims from the start.
Explain rights and legal options.
Assess case viability and present criminal complaints.
Collect and present evidence (contracts, transfers, emails, testimonies).
Pursue recovery of lost funds via civil actions and precautionary measures.
Represent victims in all hearings and counter delays by scammers.
Scams often affect foreigners investing in Panama. Victims can authorize a Panamanian lawyer through a special power of attorney, legalized at a consulate, enabling legal action without traveling. This allows:
Filing criminal complaints.
Claiming compensation.
Monitoring the case remotely.
Under Article 1969 of Panama’s Criminal Procedure Code, all crimes also give rise to civil claims for restitution and damages. Lawyers typically file criminal and civil actions simultaneously to maximize chances of freezing assets, seizing property, and obtaining compensation.
Real Estate: Phantom developments, double sales, fake promoters.
Financial: Pyramid schemes, unsustainable promises, shell companies.
Banking & Loans: Fake lenders, advance fees, falsified documents.
Digital: Fraudulent crypto platforms, phishing, fake online sales.
International Trade: Non-existent exporters, fake shipping documents.
Modern scams often cross borders. Lawyers use:
Letters rogatory for foreign evidence.
Mutual legal assistance treaties.
Interpol alerts for fugitives.
Complex or transnational scams require expertise in:
Panamanian criminal law.
International private law.
Coordination with foreign authorities.
The goal is not only criminal conviction but also asset recovery across jurisdictions.
Victims face:
Shame and fear.
Distrust in future transactions.
Lawyers provide guidance and reassurance throughout the legal process.
Cut all communication.
Gather evidence: contracts, messages, transfers, screenshots.
Contact a lawyer immediately.
File a formal complaint to increase chances of asset recovery.
Maintain digital and physical records in chronological order. Proper documentation can make the difference between a dismissed case and a successful judgment.
Unrealistic promises of high returns.
Pressure to decide quickly.
Lack of legal or formal registration.
Excessive technical jargon.
Difficulty verifying information.
Preventive legal consultations are cheaper and less stressful than litigation.
Banking phishing emails.
WhatsApp or Telegram impersonation scams.
Fraudulent crypto and trading platforms.
Non-existent online sales.
Lawyers can trace electronic transfers, request bank collaboration, and use international investigative channels.
Victims can claim:
Return of funds.
Compensation for damages.
Additional interests when significant harm occurs.
Lawyers use strategies like freezing accounts, seizing property, and including third-party liability. While full recovery is rare, partial restitution is often possible.
How long do I have to report a scam? As soon as possible; statutes of limitation may apply.
What if the scammer is outside Panama? International cooperation and Interpol alerts can help.
Do I need to travel to Panama? No, you can authorize a lawyer remotely.
Can I always recover my money? Depends on the scammer’s assets.
How much do fraud lawyers cost? Fees vary; some charge fixed amounts, others a percentage of recovery.
Always research the company or person you’re dealing with.
Consult a lawyer before contracts or large transfers.
Be skeptical of unrealistic promises.
Verify companies in Panama’s Public Registry.
Keep copies of all communications and transactions.
Frauds cause financial and emotional distress. However, Panamanian law protects victims. With specialized fraud lawyers, it is possible to report, prosecute, and recover losses. Taking the first step makes the difference between silence and justice.
