UAE warns against get-rich-quick investments

Authorities have warned UAE residents against online schemes promising quick financial gains or stupendous returns.

The Telecommunications and Digital Government Regulatory Authority and the Securities and Commodities Authority have launched an awareness campaign, asking UAE residents to question investments that guarantee a very high percentage of returns or profits and also verify authorizations and licensing of the investment products being sold online.

It advises investors to check the promoter’s licensing and accreditation, as well as verification from the country of incorporation to which the promoter belongs, reviewing the investment prospectus, and the prospectus for the offered investments.

Mohammad Al Zarooni, CEO of Policies and Programs Department, said the campaign is in line with its role as the entity responsible for promoting digital safety. “It has been noticed recently that online investment has increased, and due to our responsibility for telecommunications, digital government and smart services we have coordinated with the Securities and Commodities Authority to highlight methods of proper investment over the internet, and how to avoid falling victim to scammers and fraudsters in this vast field,” added Al Zarooni.

This campaign has been launched in response to suggestions received through social media and other channels on online investments and helps guide investors in dealing with fake advertisements and misleading campaigns they receive via the Internet, other communication channels and social media.

UAE residents are vulnerable to cyberscams due to high internet penetration in the country and a growing tendency to invest in online schemes.

waheedabbas@khaleejtimes.com