Advance-Fee Loan Scams in the Philippines: Filing Estafa and Recovering Your Money

This is practical, general legal information for the Philippines—use it to orient yourself and speak with counsel. It’s not a substitute for personalized advice.

1) What an “advance-fee loan” scam looks like

A scammer (often posing as a bank, “private lender,” or broker) promises a quick loan but requires you to pay first—for “processing,” “insurance,” “taxes,” “clearance,” or “release” fees. Once you send the money, the “lender” either (a) disappears, (b) keeps demanding more fees, or (c) sends fake proof of remittance and makes excuses.

Key red flags

“Guaranteed approval” despite poor credit/history
Pressure to pay today via e-wallet, remittance center, or crypto
Lender refuses video calls, office visits, or valid IDs/SEC/BSP details
Uses personal accounts for “company fees”
Documents or remittance slips that don’t verify with the bank/e-wallet

2) Criminal law: Why this is usually estafa (swindling)

Core basis

Article 315 of the Revised Penal Code (RPC) punishes estafa when a person, by means of deceit, induces another to part with money or property, causing damage.

For advance-fee loan scams, prosecutors typically charge Art. 315(2)(a)—false pretenses or fraudulent acts executed prior to or simultaneously with the fraud. Classic elements you must show:

Deceit: The “lender” used false pretenses (e.g., pretending to be a bank-accredited loan officer or to have authority to release a loan).
Timing: The deceit came before or at the time you sent the money.
Reliance: You believed the representations and paid.
Damage: You lost money (fees) or suffered pecuniary damage.

Depending on how the scam was structured, prosecutors sometimes also look at:

Art. 315(1)(b) (misappropriation) if the money was received in trust/agency for a specific purpose, then converted.
Syndicated estafa (special law) when a group organizes to defraud the public at scale (used more often in investment schemes, but may apply to large organized loan rackets).

Penalties (big picture)

Penalties under Art. 315 scale with the amount defrauded (as adjusted by later laws). Larger losses mean heavier penalties (and higher bail). The court can also order restitution of the amount defrauded.

Other possibly relevant laws (case-by-case)

Cybercrime Prevention Act (RA 10175): If the deceit was done through ICT (social media, messaging apps, websites), prosecutors may allege the offense was committed through computer systems, which can affect jurisdiction, evidence handling, and penalties.
Financial Consumer Protection Act (RA 11765): Gives regulators (BSP/SEC/IC) stronger powers to investigate and sanction financial scams and assist consumers.
Lending/Financing Company laws (RA 9474 / RA 8556): It’s unlawful to operate a lending/financing business without SEC registration and a Certificate of Authority. This supports administrative enforcement and helps show deceit.
Data Privacy Act (RA 10173): If the scammer harvested your IDs or personal data unlawfully, there may be separate privacy violations.
B.P. 22 (bouncing checks) only if checks were issued (less common in advance-fee scams).

3) Civil law: Suing to get your money back

Even as you pursue criminal charges, you may recover funds through civil actions:

Civil action impliedly instituted with the criminal case. By default, filing criminal estafa includes the civil action for restitution/damages (unless you waive or reserve it).
Separate civil case (if you reserve the civil aspect):
- Small Claims (no lawyers required at trial; streamlined). Suitable for straight money claims up to the current small-claims limit (check the latest limit; it has been substantially increased in recent years).
- Ordinary civil action for sum of money and damages (Regional Trial Court or first-level court depending on amount).
- Provisional remedies: Ask the court for pre-judgment attachment (Rule 57) if there’s fraud in contracting the obligation or the defendant is disposing of assets to defraud creditors. This can freeze assets early, subject to you posting a bond.

Prescriptive periods (time limits)

Criminal estafa: Generally 10 years if the imposable penalty is correctional; some lesser forms can prescribe in 5 years. Counting rules can vary—file as soon as possible.
Civil actions based on fraud: Generally 4 years from discovery (different rules may apply for contract or quasi-delict).

4) Where to file and who has jurisdiction

Criminal complaint:

Venue: Estafa is transitory. You may file in the place where any element occurred (e.g., where you received the deceitful message, where you sent the money, or where you suffered damage).
Start with law enforcement:
- NBI Cybercrime Division or PNP Anti-Cybercrime Group (ACG) for online scams.
- Local police blotter helps, but for online fraud you usually proceed with NBI/PNP-ACG then to the Office of the City/Provincial Prosecutor with a Complaint-Affidavit.

Civil case:

Small Claims / Ordinary civil action: Generally where you or the defendant resides (venue rules vary), or where the cause of action arose.

Regulators (administrative route, parallel to criminal/civil):

SEC (illegal lending/online lending apps without authority, harassment, misrepresentations).
BSP (if a bank/e-money issuer or its agent is involved).
IC (if a fake “insurance” angle is used). These complaints help investigations, freeze operations, and produce records you can use in criminal/civil cases.

5) Evidence: what to collect and how to make it court-ready

Gather immediately

Conversation threads (full chat/email timelines, including headers if email).
Screenshots & screen recordings (capture handles, profile links, phone numbers, and timestamps).
Bank/e-wallet/crypto transaction records (reference nos., account names/numbers, dates, amounts).
IDs, permits, SEC/BSP certificates the scammer sent (often forged).
Payment instructions they gave (beneficiary names, tagged “agents,” remittance slips).
Witness statements (anyone who saw or joined calls/chats).

Make evidence admissible (Rules on Electronic Evidence)

Keep native files (original chat exports, PDFs, image files).
Note who captured each item, when, and how. Maintain a simple chain-of-custody log.
Printouts are acceptable, but authenticity must be shown by testimony and/or certificates of authenticity from platforms/banks (prosecutors can issue or request subpoenas for logs/IDs).

6) Step-by-step: Filing estafa

Act fast to contain the loss
- Ask your bank/e-wallet to flag/freeze the recipient account and attempt a recall/trace of funds. Provide reference numbers and your proof.
- File a scam report on the platform (FB/IG/marketplace/messaging app) and preserve copies of takedown acknowledgments.
- If you used a credit card, request a chargeback with your issuer (submit your evidence and a police/NBI report if available).
Blotter / Law enforcement intake
- Go to NBI or PNP-ACG. Bring your complete evidence packet (USB + printed set). Ask for an incident report or acknowledgment.
Complaint-Affidavit for the Prosecutor
- Prepare a sworn Complaint-Affidavit narrating:
  - who the respondents are (even as “John/Jane Doe” if you only have handles/accounts);
  - the deceitful representations;
  - when, where, and how you sent money;
  - loss amount and proof;
  - the criminal law provisions relied on (Art. 315(2)(a), with cybercrime tagging if online); and
  - your prayer (issue subpoenas, file information, restitution, HDO/WLO if applicable).
- Attach Annexes (organized, paginated): chats, IDs, transaction slips, screenshots, regulator queries, etc.
- Have it notarized (or sworn before the prosecutor). File with the Office of the Prosecutor in a proper venue.
Preliminary Investigation
- Prosecutor issues subpoena to the respondent(s). They file counter-affidavits; you may reply.
- Possible clarificatory hearing. Prosecutor resolves probable cause.
- If found, an Information is filed in court. The court issues a warrant (or summons if allowed) and sets bail.
- Civil liability can be pursued within the criminal case (restitution, damages) unless you reserved it.
Trial & Judgment
- Arraignment → Pre-trial → Trial (prosecution then defense).
- Upon conviction, the court may order restitution. You can execute on the judgment (garnish bank accounts, levy on properties). If acquittal, you may still win civil liability on a lower standard of proof.

7) Parallel tracks to recover money (do these in addition to the case)

Bank/e-wallet escalation: Keep pressing for trace and freeze. Provide the police/NBI case number and prosecutor docket when available—compliance teams take these seriously.
Regulator complaints:
- SEC: Report unregistered lending, misrepresentation, fake permits, abusive collection.
- BSP: If a supervised institution or its agent was involved (e.g., an e-money issuer or bank), file a consumer complaint.
- Insurance Commission: If they collected fake “loan insurance.”
Civil demand letter: Send a final demand giving a short deadline before suit/attachment. (Not required for estafa, but helps settlement and shows good faith.)
Pre-judgment attachment: In a separate civil case, ask the court to attach assets now (you’ll post a bond). This is crucial if the scammer is liquidating or moving funds.
Chargeback/dispute (cards/payment processors): Frame it as goods/services not provided due to fraud and attach your evidence.
Platform cooperation: Ask the prosecutor to subpoena platform/bank records (account opening KYC, IP logs, device fingerprints) to identify real persons behind aliases.

8) If the suspect is unknown or abroad

You can still file against John/Jane Doe using the identifiers you have (account names, numbers, IP/email handles).
Prosecutors can subpoena local payment intermediaries; NBI/PNP-ACG can send MLAT or Interpol assistance requests if needed.
Practically, civil recovery (chargebacks, bank recalls, attachment against any local confederates) often yields faster results than waiting for cross-border arrests.

9) Practical tips that make or break cases

Name real people where possible: money mules, agents, and account owners you paid—each can be a respondent.
Total the loss precisely; include every transfer (principal + identifiable fees).
Preserve metadata: export chat threads; avoid over-editing screenshots.
Don’t send more “verification fees.” Once you suspect fraud, stop paying.
Coordinate tracks: Criminal, civil, and regulator actions reinforce each other.
Be realistic on restitution: Even with conviction, recovery depends on finding assets—hence the importance of attachment and bank/e-wallet freezes early.

10) Simple templates (copy-adapt)

A. Complaint-Affidavit (outline)

Affiant’s identity (name, address, government ID).
Respondents (names/aliases/handles; account numbers; phone nos.; links).
Facts (chronology of deceit → payments → non-release → further demands).
Law violated (RPC Art. 315(2)(a); plus RA 10175 “committed through computer systems,” if applicable).
Evidence (Annex list).
Prayer (find probable cause; file Information; subpoenas to banks/platforms; restitution; HDO/WLO when proper).
Verification and notarization.

B. Annex List (example)

A – Chat transcript export (Messenger/WhatsApp/etc.)
B – Screenshots with timestamps and URLs
C – Proof of payments (bank/e-wallet slips)
D – IDs/permits sent by respondents
E – Your demand letter and courier/email proof
F – Regulator complaint receipts (SEC/BSP/IC)
G – Police/NBI blotter or incident report

C. Demand Letter (short form)

Date

Name / Alias (with known address/email)

Re: Fraudulent collection of “loan processing fees” totaling ₱[amount]

You induced me to pay ₱[amount] on [dates] by falsely representing that you could release a loan of ₱[amount]. No loan was released. This constitutes estafa under Art. 315 RPC.

Demand: Return ₱[amount] within [5] days to [your account details]. Failing which, I will pursue criminal charges, civil action with attachment, and regulatory complaints.

Signed, [Your name, address, contact details]

11) Quick Q&A

Q: Do I need to send a demand letter before estafa? A: No. Estafa by deceit does not require prior demand. Send one only if you want to open a door to quick settlement or for a civil case.

Q: Can I file where I live even if the scammer is elsewhere? A: Often yes. Estafa is transitory; filing is allowed where an element occurred (e.g., where you sent the money or received deceitful messages).

Q: What if I already gave my IDs? A: Treat it as a data risk. Secure your accounts (SIM, email, banking), place fraud alerts with your bank/e-wallet, and include the privacy aspect in your report.

Q: What gets money back fastest? A: Immediate bank/e-wallet escalation, chargebacks, and pre-judgment attachment (where possible) typically move faster than waiting for a criminal judgment.

12) One-page action checklist

Stop paying; screenshot everything
Ask bank/e-wallet for trace/freeze/recall (give refs)
File platform scam report (save ticket nos.)
Go to NBI or PNP-ACG with evidence packet
Prepare and file Complaint-Affidavit (proper venue)
Decide: keep civil action within the criminal case or reserve for Small Claims/ordinary civil with attachment
File regulator complaints (SEC/BSP/IC)
Track and follow up; update banks/regulators with case numbers

If you want, tell me (1) where you sent the money (bank/e-wallet), (2) total amount and dates, and (3) what identifiers you have for the scammer, and I’ll draft a tailored Complaint-Affidavit and Annex list you can file right away.