Dubai regulator warns over online fraudsters

Fraudsters posing as legitimate Dubai businesses to lure investors, says DFSA
Dubai regulator warns over online fraudsters
DFSA, regulator of Dubais tax-free business park, has issued eight fraud alerts since 2008
By Claire Ferris-Lay
Mon 25 Jul 2011 04:06 PM

fraudsters are baiting investors with fake websites purporting to be those of
legitimate Dubai businesses, Dubai International Financial Centre’s (DIFC) regulator
warned Monday.

The alert is the second issued by Dubai Financial Services
Authority in a month, and follows at least seven warnings on advance fee frauds
since 2008.

particular scam is quite elaborate in that it involves the theft of the
identity of a prominent and reputable UAE business and the creation of a fictitious
website in the name of … Dubai Investment Financial Capital by copying the
website of the UAE business,” Steve Glynn, head of enforcement at DFSA, told
Arabian Business.

company claims to be a wholly owned subsidiary of state-backed conglomerate
Dubai Holding and that it is regulated by the DFSA.

statement is incorrect. Dubai Investment Financial Capital is not regulated by
the DFSA,” and is not affiliated with the DIFC, the regulator said in a statement.

earlier this month issued a warning cautioning the investment community over so-called
advance fee scams, which use false documents bearing the DIFC letterhead.

The scam:
“involves people falsely advising victims that funds are available which they
can access; or fictitious loans are available. The terms of these loans carry
the promise of swift finalisation and release of funds,” the DSFA said in a
statement on its website.

agreed to access the funds or to take up the loan, the victim is then told that
registration with the DIFC is required for which a fee is required. False
DIFC documents, bearing the DIFC letterhead are used by the individuals to
legitimise the fraudulent activity.”

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