Coronavirus Pandemic

Combating coronavirus: Dubai warns of $10 million loan scheme fraud

Waheed Abbas/Dubai
Filed on April 27, 2020 | Last updated on April 27, 2020 at 01.58 pm
coronavirus, covid-19, DFSA, loan, Dubai Financial Services Authority, fraud, scam

DFSA had earlier warned consumers about an increase in scams and other fraudulent activity since the onset of Covid-19.

The UAE residents and financial services community have been warned against a scam offering $10 million loan to support young entrepreneurs and to protect people from coronavirus.

According to the Dubai Financial Services Authority (DFSA), the scammers have set up a fake LinkedIn account, which contains a photograph of a current DFSA employee, claiming to be a profile of the regulator.

"A post on the fake LinkedIn profile details a fictional $10 million loan with a zero per cent interest return allegedly provided by the DFSA for the purpose of promoting the Indian economy, helping young start-up entrepreneurs, supporting the good people of India because of Novel Coronavirus (Covid-19)," the DFSA said in a statement.

Earlier this month, the regulator had issued an alert to consumers warning about an increase in scams and other fraudulent activity since the onset of the Covid-19 pandemic.

The scammers' post indicated that, in order to apply for the loan, an application form should be requested and completed.

"The DFSA confirms that the LinkedIn profile is fake, and the loan being offered through the LinkedIn profile is fictitious and a scam. The DFSA does not offer loans to consumers of any kind. The DFSA strongly advises that you do not respond to the perpetrators of the scam, and under no circumstances should you send or give any money to any party connected to the scam," it said in a statement.

In order to cope with growing Covid-19 fraudulent activities, UAE Banks Federation, the Central Bank of the UAE, Abu Dhabi Police, and Dubai Police have also launched the UAE's first national fraud awareness campaign to educate and protect consumers from financial cybercrime and fraud, particularly in light of the increased use of digital banking services during the Covid-19 pandemic.

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