Fraud in IT and Digital Services from Kazakhstan

18.01.2026 | Взыскание

Fraud in IT and Digital Services from Kazakhstan

How to Recover an Advance Payment If You Were Scammed on Software Development, a Startup, or Professional Services

Legal Practice 2024–2026 | Republic of Kazakhstan

Author: Samat S. Sagidanov, Attorney-at-Law (Kazakhstan)
State License No. 0000650, issued by the Ministry of Justice of the Republic of Kazakhstan on April 20, 2006
Legal experience: 25+ years
Practice areas: Recovery of advance payments, international disputes, IT fraud, startups, cross-border litigation

If you do not have time to study the details, contact me directly.
I am ready to promptly advise you on any legal issue.

You may simply write to me on WhatsApp in any language convenient for you.
I will ensure qualified translation and provide a legally accurate response in order to eliminate any risks and misunderstandings.

I Paid for IT Services in Kazakhstan, but There Is No Result. Is This Fraud?
If you:

paid an advance payment for IT services, software development, a startup project, SaaS, digital marketing, or consulting in Kazakhstan;
received reports, demos, “sprints,” or presentations, but the product does not work or cannot be used;
keep hearing: “we are almost done, just one more payment” —

then under Kazakhstan court practice in 2024–2026, such cases are increasingly classified as sham performance, and in certain situations — as fraud.

❗ Key legal point:
Formal activity ≠ proper contractual performance.

From a legal perspective, services are considered rendered only if they produce usable and commercially meaningful results.

Kazakhstan as an IT Hub: Market Growth and Rising Fraud Risks
Over the last few years, Kazakhstan has become a regional hub for:

software and application development;
IT outsourcing;
startups and venture projects (Astana Hub, tech parks);
digital marketing, SEO, SMM;
consulting and other professional services.

Clients from the United States, EU, UK, UAE, Turkey, and CIS countries often pay 100% advance payments to Kazakh companies (LLPs / “TOO”).

📈 At the same time, search queries have surged:

“scammed by IT company in Kazakhstan”
“how to recover advance payment from Kazakhstan”
“Kazakhstan software development fraud”
“startup scam Kazakhstan”
“Kazakh company took money and did not deliver”

Partial Performance as a Common Fraud Scheme
In most cases, fraud in IT projects does not look like total disappearance.

Instead, it looks like controlled imitation of work:

non-functional prototypes;
source code delivered without documentation or access;
formal reports with no implementation;
endless “sprints” without measurable output;
claims that “70–80% of the work is already completed.”

The real objectives of the contractor are to:

create an illusion of contract performance;
avoid asset freezing and injunctions;
gain time;
transfer or withdraw funds;
liquidate or “empty” the Kazakh company.

⚖️ Position of Kazakhstan courts (2024–2026):
If the result cannot be used for the contractual purpose, the service is deemed not rendered, even if some actions were formally performed.

In such disputes, the key role of an attorney is to prove that the work was either not performed at all or performed improperly.

Services Were “Provided,” but Have No Value — Can You Recover the Money?
Yes.

Key indicators of sham or improper performance:

no real implementation;
the product is not used in business;
no measurable or commercial effect;
non-compliance with the Statement of Work / Technical Specification;
lack of consumer or business value.

❗ A common mistake made by foreign clients:
“If they did something, recovery is impossible.”

This is not true.

Recovery is possible — but timing is critical.

Effective action often requires:

filing a court claim without prior notice to the debtor;
immediate applications for freezing bank accounts;
independent technical or financial audits;
filing criminal complaints with law enforcement authorities;
coordinated legal pressure on multiple levels.

Contract and Acceptance Certificates Do Not Fully Protect the Contractor
A widespread misconception:

“If the acceptance certificate was signed, the money is lost.”

In IT and digital services disputes, acceptance acts are often:

signed automatically;
approved by email;
disconnected from actual quality and scope;
executed without technical ability to verify the result.

⚠️ Under Kazakhstan law and court practice, a signed acceptance act does not bar recovery if it is proven that:

the client was misled;
performance was fictitious;
the result is useless or non-functional.

Why Self-Help Attempts Usually Fail
Typical mistakes made by foreign clients:

prolonged negotiations instead of legal action;
sending claims without asset analysis;
filing lawsuits without interim measures;
incorrect legal qualification of the dispute;
ignoring criminal-law instruments;
loss of time.

The usual outcome:

A court decision exists — the money does not.

How Advance Payments Are Actually Recovered (2024–2026 Practice)
An effective recovery strategy does not start with a lawsuit.

It starts with a structured legal analysis of:

the Kazakh company’s corporate structure;
cash flow and fund movements;
affiliated and related entities;
IP rights, domains, and digital assets;
ultimate beneficial owners;
contractual and payment models.

Only then is the optimal path chosen:

civil litigation;
criminal proceedings;
a combined strategy (the most effective in practice).

📌 In many cases, funds are recovered without long-term litigation, through timely injunctions and proper legal qualification.

Case Study: Sham Software Development Project
A foreign client paid for software development in Kazakhstan.
The contractor provided reports and demonstrations.

An independent review revealed:

unusable source code;
absence of documentation;
copying from open-source repositories;
work performed by undisclosed third parties;
failure to achieve the contractual purpose.

The dispute was reclassified from a “commercial disagreement” to misrepresentation and deception, enabling recovery of the advance payment and part of the damages.

Why You Need a Local Attorney in Kazakhstan
IT disputes cannot be handled effectively remotely.

Only a licensed attorney in Kazakhstan can:

operate within current local court practice;
use criminal-law mechanisms;
initiate interim and security measures;
work directly with court bailiffs and banks;
quickly block assets located in Kazakhstan.

In cross-border disputes, speed matters more than a perfect contract.

My Approach
I do not sell illusions or template solutions.

My objective is:

to recover your funds;
or
to honestly inform you if recovery is not realistically possible.

Every case starts with an analysis of the contract, correspondence, and the actual result delivered.

⏳ Every day of delay works against the client.

📞 WhatsApp: +7 702 847 80 20
📧 Email: garantplus.kz@mail.ru

Frequently Asked Questions
Can I recover an advance payment if services were formally provided?
Yes. Formal actions do not equal proper performance.

What if the services were partially performed?
Partial performance does not eliminate the right to claim a refund and damages.

Do I need to travel to Kazakhstan?
No. Representation is possible via power of attorney.

Civil lawsuit or criminal case — which is more effective?
It depends on asset structure and recovery objectives.

Final Note
If you were scammed on IT services, a startup, or professional work in Kazakhstan,
time is already working against you.

📞 Contact me now. Tomorrow may be too late.

If you do not have time to study the details, contact me directly.
I am ready to promptly advise you on any legal issue.

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Fraud in IT and Digital Services from Kazakhstan