Don't fall for this Dh15.5 million scam in Dubai
Dubai - The DFSA has also issued warnings and guidance about the common types of scams
Published: Thu 11 Jan 2018, 3:41 PM
Last updated: Fri 12 Jan 2018, 7:51 AM
The Dubai Financial Services Authority (DFSA) has warned residents about a scam that impersonates its chairman, a UAE commercial bank and other government entities.
Scammers contact consumers and falsely claim they have been the beneficiaries of a $15.5 million, before using a fake letter under "The Official Portal of UAE Government" stating that to access the beneficiary, they have to pay a "due charge" of $54,250 (about Dh200,000) as charged by "the Federal Government."
In a statement, the DFSA said scammers incorrectly spelled the name and signature of the authority's chairman on the letter.
The scam also falsely attributes the letter headed "RE: APPROVAL AND ENDORSEMENT OF FUNDS FOR REMITTANCE TO [NAME OF CONSUMER]" to a UAE commercial bank, a government ministry and an online government system.
DFSA clarified to residents that it "does not deal with any payments that may be requested from consumers by the "Federal Government"."
The authority also advised residents to avoid under any circumstance sending or giving money to any party in connection with the scam.
The public can access DFSA's page on its website dedicated to alerts about scams.
The DFSA has also issued warnings and guidance about the common types of scams, including Advance Fee scams, perpetrated on consumers.
To confirm the authenticity of any correspondence or documents that claims to be issued by the Dubai International Financial Centre (DIFC), DFSA or a DFSA regulated Firm, call +971 4 362 2222 or send a compliant on the DFSA Complaints function on the website.
How to avoid being scammed?
- Check the relevant regulatory agency's website to see if the company you are dealing with is listed and regulated. You can even contact the regulator to verify whether the company is regulated
- Do general searches (e.g. on Google) to see what information can be found about the company you are dealing with
- Only deal with people you trust. Dealing with individuals you have never met carries a higher risk
- Get independent advice before entering into a transaction, or getting a second opinion from a trusted friend
- Use common sense.
Be wary of the tell-tale signs of a scam such as persons who:
- Communicate only via email and telephone with a reluctance or a refusal to meet in person;
- Are reluctant or refuse to provide information on who regulates their activity; and/or
- Use generic email address such as Hotmail and Yahoo; and-
- Keeping paperwork safe. When entering into any new relationship ensure that you maintain good records of all paperwork you receive and keep records of all your meetings and conversations. This may not prevent you from being scammed but will assist in the event that you need to take any action.
- If you receive an offer of an amazing deal out of the blue, don't believe it! If it seems too good to be true then it is probably a scam
- If you receive an opportunity to invest in a financial product which
- looks real
- offers bigger and faster profits than real investments
- offers less risk and less effort than real investments-
- offers something special that genuine investments don't offer; and urges you to act more urgently than the real thing