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Nearly half of UAE consumers have fallen for a scam, study shows
Consumers are now actively spotting red flags and verifying the legitimacy of online interactions
- PUBLISHED: Tue 18 Mar 2025, 12:01 PM
Nearly half (49 per cent) of consumers in the UAE have fallen for a scam, with 15 per cent being victims on multiple occasions, a study showed on Tuesday.
A new study commissioned by Visa reveals that while 59 per cent of surveyed consumers in the UAE have some degree of confidence in their own ability to spot fraud, 92 per cent worry their family or friends might fall for a scam. Ninety percent (90 per cent) believe that Gen X digital payment users are most likely to get scammed online.
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The ninth annual Stay Secure study, which surveyed 5,800 adults across 17 CEMEA markets, found that 99 per cent of consumers in the UAE now actively take precautions to secure their online transactions, showcasing increased savviness as digital payments gain momentum.
With growing reliance on digital payments, scams continue to proliferate. For example, 62 per cent have been approached by someone requesting them to transfer money on their behalf. Despite this, only 30 per cent admit to being primarily responsible for falling victim to a scam, while 55 per cent believe others are to blame.
The increased adoption of security measures and preference for stronger authentication indicate a positive shift in consumer behaviour since the last edition of the Stay Secure study in 2023. Consumers are now actively spotting red flags and verifying the legitimacy of online interactions, showing a marked increase in awareness.
Other key insights emerging from the research bode well for the continued acceleration of digital payments in the UAE, with over three-quarters (77 per cent) of all respondents stating that they mostly or completely trust digital payments. Eighty-one percent (81 per cent) of respondents surveyed anticipate that they will increase their use of digital payments over the next year.
“The digital payments landscape is evolving rapidly, and consumers across the UAE are embracing its convenience while becoming more vigilant about security,” said Charles Lobo, senior vice president, regional risk officer, Central and Eastern Europe, Middle East, and Africa (CEMEA), Visa. “Consumer education is our best defense against fraud, and industry collaboration makes this possible. As scams grow more sophisticated, the battle for security never stops. Consumers increasingly trust partners who take tangible steps to protect them.”
“We are delighted to launch Visa’s latest Stay Secure research for the UAE which underscores the important role retailers and financial institutions play in building and maintaining consumer trust in digital payments. Our latest research provides valuable insights that can inform industry strategies to enhance consumer trust and protect the payments system and support the UAE government’s efforts to grow the digital economy,” said Salima Gutieva, Visa’s VP and Country Manager for UAE.
The Stay Secure study highlights evolving consumer preferences, which could offer Visa’s stakeholders actionable intelligence for trust-building strategies and inform the creation of educational materials to empower consumers against fraud.
Consumers are highly wary of suspicious text messages or emails, recognizing these as potential scams designed to steal their money. The biggest red flag for fraud is a request to reset passwords or account information due to a data breach, with 68 per cent of respondents ranking it as one of the top three most suspicious messages.
Nearly all (99 per cent) surveyed consumers in the UAE remain cautious about suspicious requests. 61 per cent decline to respond to emails asking them to transfer money on someone else’s behalf, while 59 per cent refrain from sharing card or account credentials. Forty-eight percent (48 per cent) have set up text message alerts that notify them of any account transactions.
Consumers in the UAE use a variety of digital payment methods, the most common being card payments (67 per cent), mobile payments (59 per cent), and bank transfers via mobile banking apps or platforms (59 per cent). Seventy percent (70 per cent) of respondents find digital payments quicker and simpler than other methods and 66 per cent appreciate that they allow payments anytime, anywhere.
Mobile payments are also seen as one of the most secure digital payment methods. Meanwhile, peer-to-peer (P2P) payments are used by 34 per cent of adults in the UAE, yet only 5 per cent consider them the easiest payment option. This highlights an opportunity to improve the user experience and simplify the process for greater adoption.
As digital payments gain traction, retailers, banks, and payment processors can build trust by requiring users to confirm purchases via texted codes or links and displaying trusted security badges. Eighty-six per cent of consumers in the UAE feel safer when they must confirm their identity through a text code, while more than half (56 per cent) appreciate visible security icons.
Associate Editor Somshankar Bandyopadhyay brings more than three decades of experience to the KT newsroom. Currently, he manages the news production of the business section, ensuring that the top economic and business news of the day reaches its readers.