Electronic transactions facilitate economic activity but also enable fraud to be presented as an apparently valid contractual relationship. This study examines the legal construction of criminal liability for online fraud and evaluates the application of Article 378 of the Indonesian Penal Code in Decision Number 35/Pid.B/2025/PN Krg. The research uses a normative juridical method with statutory, conceptual, and case approaches. Primary legal materials consist of the applicable Penal Code, the Electronic Information and Transactions Law, the Civil Code, and the court decision, supported by relevant legal literature. The findings show that the decisive distinction between fraud and breach of contract is not merely the non-performance of an obligation, but the presence of an unlawful intent, deceit, or a series of lies before or when the victim transfers money. In the case studied, fictitious persons and businesses, unrealistic profit promises, and the pattern of initial payments were considered together to establish the causal link between the deception and the victim’s transfer of funds. The court’s use of Article 378 was consistent with legality and culpability principles, while the proportionality of the sentence and victim recovery remain areas requiring fuller assessment.
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