Dubai online fraud probe: three arrested

But fake websites in a scam uncovered by the DFSA may still be operating.
Dubai online fraud probe: three arrested
By Ben Flanagan
Sun 18 Feb 2007 02:43 PM

Three people have been arrested following an internet fraud investigation launched by the Dubai Financial Services Authority (DFSA).

The uncovering of a Dubai-centred fake investment scheme has see arrests made in Kuala Lumpur at the request of the Malaysian Securities Commission.

Two were released and one person is currently being questioned, according to a statement released by the DFSA.

A bank account linked to the alleged fraudsters, which contains $350,000, has been frozen in actions taken by the Malaysian authorities, who are assisting in the ongoing DFSA investigation.

"The actions relate to the fraudulent investment scheme targeting Australian and Singaporean investors who were cold called by representatives of Cambridge Capital Trading, a fictitious London firm. Investors were directed to websites called the Dubai Options Exchange and a fictitious regulator, the UAE Commodity Futures Board," according to a statement issued by the DFSA.

"Cambridge Capital Trading asked investors to transfer funds to a bank account in Malaysia, upon becoming a client of the fictional exchange. The perpetrators took great care to construct realistic websites, electronic answering services and a bogus facsimile in the UK to fool investors and to conceal their identities. The DFSA has confirmed that the billing address for the web sites is also false."

However, the websites linked to the fraud may still be running, given that civil court orders obtained in the Dubai International Financial Centre Court have only just been served on internet service providers in the USA and Malaysia.

"It is expected that the websites will be closed down shortly with the cooperation of the internet service providers," said the DFSA.

"The DFSA is continuing its investigation, working jointly with ESCA and Dubai Police and our counterparts in the United Kingdom, USA, Australia and Malaysia."

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