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Thu 11 Jul 2019 10:01 AM

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Dubai financial regulator warns of easy loan scam

The scammers use false certificates of incorporation, which the DFSA doesn't issue

Dubai financial regulator warns of easy loan scam
The DFSA is advising members of the public to not respond to kyo Microfinance Bank Limited or any person or company claiming to represent the firm.

The Dubai Financial Services Authority (DFSA) is warning about a fraudulent scam which offers easy loan approvals in return for a fee.

The scammers – going by the name Skyo Microfinance Bank Limited – first ask individuals to transfer a free to finance an insurance policy against the loan in addition to the administrative fees.

The fraudulent firm also displays a false certificate of incorporation purportedly issued by the DFSA.

In a statement, the DFSA clarified that it does not issue certificates of incorporation of any kind to any company, firm or person.

The DFSA is advising members of the public to not respond to Skyo or any person or company claiming to represent the firm.

The DFSA regularly alerts the public to scams through its website.

 In December 2018, for example, the DFSA warned about a scam being committed by fraudsters purported to come from the DIFC Authority.

In an alert posted to its website, the DFSA noted that the scammers are using fraudulent e-mails and documents offering consumers loans of up to $125 million.

The e-mails include a fake loan agreement document bearing the DIFC’s logo and the name of its governor.

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