🃏 Property Crime

Fraud Under $5,000

Criminal Code — Section 380(1)(b)

Definition

Fraud Under $5,000 occurs when a person, by deceit, falsehood, or other fraudulent means, defrauds someone of property, money, or valuable security worth less than $5,000. This includes writing bad cheques, small-scale scams, misusing someone's credit card for minor purchases, and dishonest transactions.

Penalties

Classification

Hybrid offence — can be prosecuted as summary or indictable.

Maximum Penalty

Maximum 2 years imprisonment.

Examples

•Writing a cheque you know will bounce

•Using someone else's credit card for a small purchase

•Selling a fake product online for under $5,000

•Submitting a false insurance claim for a small amount

•Lying on a rental application to obtain housing

Elements the Crown Must Prove

To convict for fraud under $5,000, the Crown must prove beyond a reasonable doubt that:

1. Deceit or dishonesty: The accused used deceit, falsehood, or other fraudulent means 2. Deprivation: The victim was actually deprived, or there was a risk of deprivation, of property, money, or a valuable security 3. Knowledge: The accused knew the act was dishonest 4. Value: The amount involved was under $5,000

The victim does not need to suffer an actual financial loss — a risk of loss is sufficient. Even an unsuccessful fraud attempt can be charged.

How Common Is This in Canada?

Fraud under $5,000 is one of the most commonly charged property offences in Canada. Statistics Canada data shows the combined fraud category (all types) accounts for approximately 115,000 to 130,000 reported incidents per year, with a rate of roughly 300 to 340 per 100,000 population. The majority of reported fraud falls below the $5,000 threshold.

Fraud has increased dramatically over the past two decades — up more than 150% since 2000 — driven primarily by online fraud, phishing schemes, and digital payment scams. The Canadian Anti-Fraud Centre (CAFC) estimates that only about 5% of fraud victims report to police, meaning the true scale of fraud is vastly larger than official statistics suggest.

Small-scale fraud committed by individuals often involves bad cheques, minor credit card misuse, or small online scams. First-time offenders frequently receive discharges or probation, but repeat fraud offenders face increasingly severe sentences.

Frequently Asked Questions

What is the penalty for fraud under $5,000 in Canada?

As a summary offence, the maximum is 2 years less a day and/or a fine. As an indictable offence, the maximum is 2 years imprisonment. First-time offenders often receive conditional discharges, probation, or restitution orders.

What is the difference between fraud under and over $5,000?

The distinction is the value involved. Fraud over $5,000 (s. 380(1)(a)) is far more serious — it is a straight indictable offence with a maximum of 14 years. Fraud under $5,000 is hybrid with a maximum of 2 years.

Can I be charged with fraud for bouncing a cheque?

Yes. Knowingly writing a cheque that will not clear constitutes fraud. However, accidentally bouncing a cheque due to an unexpected shortfall is generally not considered fraud because the element of intent is missing.

Is lying on a resume fraud?

Potentially. If you obtain employment or financial benefit by lying about your qualifications, this could constitute fraud. However, prosecution is uncommon unless the deception caused significant harm or involved regulated professions.

Will a fraud under $5,000 conviction give me a criminal record?

If convicted, yes. A fraud conviction creates a permanent criminal record. First-time offenders should discuss with a lawyer about seeking a conditional discharge to avoid a criminal record.

Can I travel to the US with a fraud conviction?

A fraud conviction can make you inadmissible to the United States, as US Customs and Border Protection (CBP) considers fraud a crime involving moral turpitude. Even fraud under $5,000 may trigger inadmissibility if it results in a conviction on your criminal record. You may need a US Entry Waiver (I-192) or a Canadian record suspension (pardon) to cross the border.

How do I find a lawyer for a fraud under $5,000 charge?

Contact your provincial Legal Aid office to see if you qualify for funded representation — eligibility depends on your income and the potential consequences of the charge. You can also request duty counsel at your first court appearance for immediate free legal advice. For private lawyers, your provincial Law Society's lawyer referral service offers free or low-cost initial consultations with criminal defence lawyers in your area.