In the Philippine legal system, Estafa (Criminal Deceit) is one of the most commonly prosecuted crimes against property. It is governed primarily by Articles 315 to 318 of the Revised Penal Code (RPC), as amended by Republic Act No. 10951.

Estafa is defined as a form of swindling where the offender deprives another of money, goods, or property through deceit, abuse of confidence, or fraudulent means.

I. The Three Main Categories of Estafa

The law classifies Estafa into three general types, depending on how the fraud was committed:

With Unfaithfulness or Abuse of Confidence: This occurs when there is a pre-existing relationship or agreement (like a contract or agency) where the offender misappropriates or converts money or property received in trust.
By Means of False Pretenses or Fraudulent Acts: This occurs when the offender uses a fake identity, imaginary power, or false representations to induce a victim to part with their property.
Through Fraudulent Means: This involves technical fraud, such as inducing someone to sign a document through deceit or removing/concealing documents to cause prejudice.

II. Essential Elements of the Crime

For a prosecution for Estafa to succeed, the following general elements must be proven beyond reasonable doubt:

Deceit or Abuse of Confidence: The offender must have employed fraud, false pretenses, or abused a position of trust.
Inducement: The deceit must be the "efficient cause" that moved the victim to hand over the money or property.
Damage or Prejudice: The victim must have suffered a financial loss, or at least the possibility of loss, capable of pecuniary (monetary) estimation.
Demand (Specific to Art. 315, par. 1[b]): In cases of misappropriation, a formal demand to return the property is generally required to prove the element of "conversion."

III. Common Modes of Commission

1. Estafa by Misappropriation (Art. 315, par. 1[b])

This is the most frequent type. It involves property received by the offender under the obligation to make delivery of or to return the same.

Example: An agent receives jewelry to sell on commission but keeps the money instead of remitting it to the owner.

2. Estafa by Deceit (Art. 315, par. 2[a])

Using a fictitious name or falsely pretending to possess power, influence, qualifications, or property to defraud another.

Example: A person pretending to be a licensed recruitment agent to collect "placement fees" from job seekers.

3. Estafa by Postdating a Check (Art. 315, par. 2[d])

Issuing a check in payment of an obligation when the offender had no funds in the bank, or the funds were insufficient to cover the amount.

Note: This is distinct from B.P. 22 (Bouncing Checks Law). Under Estafa, the check must be issued simultaneously with the obligation to deceive the victim. If the check was issued for a pre-existing debt, it is usually only B.P. 22.

IV. Procedural Requirements for Filing

To initiate a criminal action for Estafa, the following steps and documents are required:

1. Preparation of the Complaint-Affidavit

The victim (Complainant) must execute a sworn statement detailing the facts of the case. It must clearly state:

How the deceit was employed.
The exact amount of money or description of the property involved.
The date and place of the incident.

2. Supporting Evidence

Demand Letter: A formal letter sent via registered mail (with a return card) demanding the return of the money/property.
Receipts/Contracts: Any documentary proof showing the transfer of funds or the existence of a trust agreement.
Affidavits of Witnesses: Statements from third parties who witnessed the fraudulent act.

3. Filing at the Prosecutor’s Office

The complaint is filed with the Office of the City or Provincial Prosecutor where the crime was committed (Venue is jurisdictional). A filing fee is usually required based on the amount of the claim.

4. Preliminary Investigation

The Prosecutor will issue a subpoena to the Respondent (the accused). Both parties will submit counter-affidavits and replies. The Prosecutor then determines if there is Probable Cause to file a "Criminal Information" in court.

V. Penalties and RA 10951

Under Republic Act No. 10951, the penalties for Estafa were adjusted based on the current value of money.

Small amounts (below ₱40,000): Arresto mayor to Prision correccional.
Large amounts (above ₱4.4 Million to ₱8.8 Million): Prision correccional maximum to Prision mayor minimum.
Exceeding ₱8.8 Million: Prision mayor in its maximum period, plus one year for every ₱1 Million in excess, not to exceed 20 years.

VI. Important Distinction: Civil vs. Criminal

Not every failed business deal or unpaid debt is Estafa. If there was no deceit at the time the money was handed over, and the failure to pay was due to simple insolvency or bad business luck, the case is Civil in nature (Collection of Sum of Money), not Criminal. In the Philippines, there is no imprisonment for non-payment of debt, but there is imprisonment for fraud.