- Fraud recovery in Malta is available through criminal proceedings filed with the Malta Police Force and the Attorney General, civil litigation before the Civil Court, and regulatory complaints to the Malta Financial Services Authority (MFSA) depending on the fraud type.
- The MFSA regulates investment services companies, banks, and crypto-asset entities under Malta’s Markets in Crypto-Assets Act (MiCA framework) – accepting complaints against regulated providers after the complaint has first been raised with the provider directly.
- The Office of the Arbiter for Financial Services (OAFS) provides independent dispute resolution for financial services complaints where the provider’s internal complaint response is unsatisfactory – accepting complaints and supporting documents in Maltese or English.
- Malta has a dedicated real estate regulatory framework: the Real Estate Licensing Board (RELB) through the Real Estate Licensing Unit handles licensing, the Real Estate Licensing Register allows verification of intermediary authorisation, and the Property Market Agency operates an official complaints channel for complaints against property intermediaries.
- Malta’s official languages are Maltese and English. The OAFS accepts complaints in Maltese or English. MFSA official materials and complaint pages are in English. Police reports can be filed at any police station and, in some cases, remotely.
Types of Fraud in Malta and Where to Report
Investment Company Fraud
The Malta Financial Services Authority (MFSA) regulates investment services companies and the wider financial services sector in Malta. The MFSA accepts complaints against regulated financial services providers, though complaints must first be raised with the provider. Where the provider’s reply is unsatisfactory after the internal complaint stage, the matter can be escalated to the Office of the Arbiter for Financial Services (OAFS). Where an investment firm, fund, intermediary, or unlicensed entity offered investment products or services in violation of Maltese financial law, complaints are filed with the MFSA. For criminal fraud – misappropriation of invested funds, false representations about returns, Ponzi structures, or fabricated investment products – a criminal complaint is filed with the Malta Police Force at any police station or, in some cases, remotely. The Attorney General handles criminal prosecution after police investigation. Civil proceedings for recovery of funds, damages, and interim measures are brought before the Civil Court.Cryptocurrency Fraud
The MFSA is responsible for supervision of entities authorised under the Markets in Crypto-Assets Act and hosts Malta’s MiCA/CASP framework pages. Where a crypto firm is licensed, claims to be licensed, or operates in breach of Malta’s crypto-asset regime, complaints are filed with the MFSA. For crypto scams, online fraud, or wallet and account fraud, criminal complaints are filed with the Malta Police Force. Civil proceedings for damages, tracing, and freezing measures are brought before the Civil Court.Forex and Online Trading Fraud
The MFSA regulates forex and CFD brokers operating from Malta within the investment services regulatory framework. Where a forex or CFD provider is regulated or claims Maltese authorisation, complaints are filed with the MFSA. Where the provider’s internal complaint process produces an unsatisfactory response, the matter is escalated to the OAFS. For criminal fraud involving manipulated platforms, boiler room operations, blocked withdrawals, or impersonation of brokers, criminal complaints are filed with the Malta Police Force. Civil proceedings for recovery and damages are brought before the Civil Court.Real Estate Fraud
Malta has a dedicated real estate regulatory framework. The Real Estate Licensing Board (RELB), through the Real Estate Licensing Unit, handles licensing of property intermediaries. The Real Estate Licensing Register allows verification of whether a property intermediary is licensed and authorised. The Property Market Agency operates an official complaints channel for complaints against property intermediaries. For complaints against a property intermediary, the Property Market Agency complaint channel is the first point of contact. The Real Estate Licensing Register is consulted to verify whether the intermediary holds a valid licence. Where fraud involves fake listings, deposit fraud, forged documents, or misappropriation, criminal complaints are filed with the Malta Police Force. Civil proceedings for recovery of deposits, damages, and contractual or property disputes are brought before the Civil Court.International Trade Fraud Involving a Maltese Company
Where an international transaction with a Maltese company results in fraud – fake supplier, forged invoice, diversion of payment, sham transaction, or non-delivery with fraudulent intent – criminal complaints are filed with the Malta Police Force. Civil proceedings for contractual claims, damages, and interim relief are brought before the Civil Court. The Malta Business Registry (MBR) should be consulted to check the company’s insolvency status and insolvency-related records. For consumer purchases of goods or services, the MCCAA is the competent authority.Fraudulent Bankruptcy
Where a company in which funds were invested enters insolvency and there are indicators of fraudulent conduct – fraud, asset stripping, false accounting, or deception – insolvency proceedings are administered through the Malta Business Registry and insolvency system, covering insolvency register entries, creditors’ voluntary winding up, and court winding up. Bankruptcy proceedings may be filed before the Civil Court, First Hall. Criminal complaints for fraud, asset stripping, and false accounting are filed with the Malta Police Force. Civil and insolvency court proceedings are available for creditor claims and insolvency litigation.Prepayment Fraud and Non-Delivery
Where a buyer made prepayment and received no goods or services – and the case involves fraud rather than only a breach of contract – criminal complaints are filed with the Malta Police Force. For consumer complaints regarding purchases of goods and services, the MCCAA Complaints and Conciliation Directorate is the competent authority. The consumer must first try to resolve the matter with the trader and submit a written complaint to the trader before applying to the MCCAA. Civil proceedings for B2B claims or larger-value recovery are brought before the Civil Court.Phishing and Cyber Fraud
Phishing, online fraud, credential theft, and social engineering attacks are reported to the Malta Police Force – police prevention pages expressly direct victims to report suspected fraud. Criminal complaints can be filed at any police station and, in some cases, remotely. Where phishing resulted in compromised banking credentials or unauthorised transactions, the servicing bank or card issuer must be contacted immediately to block accounts and cards and dispute unauthorised transactions. Where a regulated financial entity is involved or being impersonated, the MFSA is notified.Financial Statement Fraud
Where a company in which funds were invested engaged in fraudulent financial reporting – false accounting, deception of investors, or economic crime – criminal complaints are filed with the Malta Police Force. If the company is a regulated financial entity, the MFSA is notified in parallel. Civil proceedings for investor damages and recovery are brought before the Civil Court. Where the case is linked to insolvency or corporate collapse, the insolvency and winding-up route through the MBR and court is available.Romance Fraud and Social Media Fraud
Romance scams and social media fraud – including impersonation, fabricated identities, emotional manipulation for financial extraction, and online extortion – are reported to the Malta Police Force for formal criminal complaints. Reports can be filed at police stations and remotely in some cases. Where money was transferred, the servicing bank or payment provider should be contacted immediately for urgent recall and blocking. Platform reporting systems (social networks, messengers, dating apps) should be used in parallel.Banking Fraud and Credit Card Fraud
The MFSA regulates banks and financial institutions in Malta. The Office of the Arbiter for Financial Services (OAFS) provides post-complaint dispute resolution for financial services matters where the provider’s final response is unsatisfactory. The OAFS accepts complaints in Maltese or English. The first step in any banking or card fraud matter is immediate notification to the servicing bank or card issuer to block the card and account and dispute the transaction. Where the institution fails to resolve the complaint adequately, a complaint is filed with the MFSA. If the provider’s final response remains unsatisfactory, the matter is escalated to the OAFS for independent dispute resolution. Criminal complaints for card fraud, account takeover, or unauthorised transactions are filed with the Malta Police Force.Immediate Steps After Discovering Fraud in Malta
Step 1 – File a Criminal Complaint with the Malta Police Force
Report the fraud to the Malta Police Force immediately at any police station or, in some cases, remotely. Provide all available evidence: contracts, payment records, communications, transaction references, and identity information for the counterparty. The police report is a prerequisite for prosecution and unlocks investigative tools including bank record production, platform disclosure, and cross-border cooperation.
Step 2 – Notify the MFSA
If the fraud involves an investment firm, CASP, forex platform, bank, or other regulated financial services provider, file a complaint with the MFSA. Complaints must first be raised with the provider directly. The MFSA also accepts reports on unlicensed activity and breaches of financial law. Regulatory notification creates an enforcement record and may trigger supervisory investigation.
Step 3 – Secure Financial Accounts and Initiate Recall
Contact your bank or card issuer immediately to block compromised accounts and cards and initiate recall, chargeback, or dispute procedures for fraudulent transactions.
Step 4 – Verify the Counterparty and Check Insolvency Records
Check the counterparty’s registration, status, and any insolvency records through the Malta Business Registry (MBR). For real estate intermediaries, verify licensing through the Real Estate Licensing Register. Insolvency or dissolution entries inform the enforcement strategy and determine whether asset preservation measures are necessary.
Step 5 – Preserve All Evidence
Save all communications, contracts, invoices, payment confirmations, website screenshots, email headers, and transaction records without alteration. Digital evidence is critical for both criminal investigation and civil proceedings and may become inaccessible if platforms delete accounts or the counterparty destroys records. Evidence preservation should begin immediately upon discovery of the fraud.
Legal Options for Fraud Victims in Malta
Criminal Proceedings
Criminal complaints filed with the Malta Police Force and prosecuted through the Attorney General initiate formal investigation under Maltese criminal law. Relevant offences include fraud, computer fraud, document fraud, identity fraud, money laundering, and fraudulent trading. Criminal proceedings provide access to investigative tools unavailable in civil litigation – bank record production orders, platform identity disclosure, telecommunications data, and international judicial cooperation through mutual legal assistance treaties and EU instruments.
Civil Litigation
Civil proceedings before the Civil Court are available for contractual claims, damages, restitution, unjust enrichment, and rescission of fraudulent transactions. Freezing measures and interim relief can be obtained to prevent dissipation of assets during proceedings. Bankruptcy proceedings may be filed before the Civil Court, First Hall. Civil litigation targets the fraudster and, where applicable, institutions that failed to prevent the fraud – including claims against banks and financial services providers for breach of their obligations.
Dispute Resolution Through the OAFS
The Office of the Arbiter for Financial Services (OAFS) provides independent dispute resolution for complaints against financial services providers where the provider’s internal complaint response is unsatisfactory. The OAFS accepts complaints and supporting documents in Maltese or English. This mechanism provides resolution for qualifying financial services disputes without the full cost and duration of court proceedings.
Regulatory Complaints
Complaints to the MFSA create enforcement records that contribute to supervisory action against the entity. Regulatory proceedings can result in licence suspension or revocation, fines, public warnings, and mandatory corrective measures. Regulatory findings may support civil claims by establishing that the entity breached its obligations under Maltese financial law.
Factors That Determine Recovery Outcomes in Malta
Speed of Reporting
Criminal complaints filed within hours of discovery give investigators the best chance of tracing funds before they are moved or layered through intermediary accounts. Bank recall mechanisms are most effective when initiated on the same day as the fraudulent transaction. Regulatory notifications filed promptly create contemporaneous records that strengthen both criminal and civil proceedings.
Identifiability and Asset Position of the Fraudster
Named counterparties with identifiable assets in Malta – bank accounts, real property, registered companies, vehicles – are the most viable targets for civil recovery and enforcement. Where the fraudster operated anonymously or through shell structures, criminal investigation through the Malta Police Force is the primary identification tool through bank records, platform data, and telecommunications records.
Institutional Liability
Where a regulated institution – bank, investment firm, forex platform, or CASP supervised by the MFSA – failed to comply with its supervisory obligations, institutional liability claims provide an alternative recovery path against a solvent, regulated defendant. These claims do not depend on the fraudster’s identifiability or asset position and are particularly relevant where the fraudster has absconded or dissipated assets.
Quality and Completeness of Evidence
Contracts, payment records, communications, transaction references, and digital forensic evidence form the foundation for both criminal prosecution and civil recovery. Incomplete evidence – missing transaction references, deleted communications, unrecorded oral agreements – weakens both the criminal case and the civil enforcement position. Immediate, comprehensive evidence preservation at the point of discovery is the single most important step a victim can take to support recovery.
Frequently Asked Questions
Summary
Fraud in Malta: Legal Options for Recovering Money from Fraudsters
Fraud recovery in Malta operates through criminal proceedings, civil litigation, arbiter dispute resolution, and regulatory complaints – each channel serving a distinct function in identifying the fraudster, preserving assets, and achieving financial recovery. The MFSA regulates investment firms, banks, and crypto-asset entities under Malta’s MiCA framework. The Malta Police Force handles criminal investigation and prosecution across all fraud types. The OAFS provides independent dispute resolution for financial services complaints after the provider’s internal process. The MCCAA handles consumer complaints regarding goods and services. The Real Estate Licensing Board and Property Market Agency regulate property intermediaries.
Speed of reporting determines outcomes across all channels. Criminal complaints filed immediately preserve the investigative window for fund tracing and asset identification. Bank recall and chargeback mechanisms lose effectiveness with each day of delay. Evidence preserved at the point of discovery – contracts, communications, transaction records, digital forensic data – forms the foundation for every recovery action. The OAFS accepts complaints in Maltese or English, and MFSA materials are in English, making these channels accessible for international clients – though early engagement of local counsel is recommended for court proceedings.
If you suffered financial losses through fraud involving Maltese companies, institutions, or counterparties, contact Veritas Advisory Group s.r.o. to have your legal position assessed.
Veritas Advisory Group s.r.o. provides professional legal and advisory services to victims of investment and trade fraud in Europe. This article is for informational purposes only and does not constitute legal advice.