New Financial Frauds Are Trending In the UAE!

A new method of scamming people has been trending in the United Arab Emirates for quite a while now. Scammers never leave any stone unturned when it comes to developing new and unique ideas to fool investors and laymen, to coax hefty sums of money from them. Every city of the UAE, especially Dubai and Abu Dhabi, witnesses hundreds of financial frauds on a daily basis. While some people act smart by not falling prey to these fraudsters, others don’t know what they are getting into; hence become a victim of the fraud.

The con artists of the UAE have encountered many new ways to lure people into different scams in the past few months. They make sure not to leave any loopholes in their set up and this is why they manage to escape the police and the government. However, many frauds are reported and the tricksters caught as well.

WhatsApp is the new tool for scammers!

The latest trend of financial frauds that has disturbed the citizens of Dubai and Abu Dhabi is the ‘double your cash’ scam and all the Ponzi schemes. But the one that has really surprised everyone is executed through WhatsApp, the most used messaging application worldwide.

People residing in Abu Dhabi and Dubai have reported many incidents in the year 2016, stating that they have received messages on the social media platforms especially on WhatsApp, where someone asks them for financial assistance. People have also received calls from a UAE number in which the caller asks them for financial aid because he is facing a financial crisis and is unable to feed his family.

The messages received by people also had account numbers and complete addresses where the so-called needy person wants the money to be transferred. These cases are also reported to the police and according to the Abu Dhabi police, people have received messages containing sob stories and emotional requests to help the person (scammer) as he is really in desperate need for money.

Dubai and Abu Dhabi police have stated that they are willing to help those who are genuinely in need. But since these messages have been circulating all over the country in large numbers, they are definitely the work of a fraud ring.

Bogus and Ponzi schemes

Next are the Ponzi schemes which are one of the major financial scams, trending across the the UAE. These schemes target amateur investors by offering them an excellent plan of multiplying their money in the foreign exchange trading.

The common persuasion technique is to promise 100% or more on their returns on the foreign exchange, and they do provide this to a few selected individuals so that word gets out ‘how great this investment is’. Once a sufficient number of people have followed the footsteps of the initial investors (who came out a winner), they fall prey to the Ponzi scheme, since after a while, their entire investment is lost.

But the reality is, ‘Forex’ funds actually do not exist and all these are Ponzi schemes in which the cash received from new investors is used to pay off returns to the current investors. However, many cases have been reported where the investors realized that they were being conned, thus withdrawing their money at the right time.

The newspapers and media of the country are full of cases reporting frauds and scams happening every other day and they appear to be rampant in the UAE. It is advised to be cautious when visiting the UAE, as well as taking the necessary precautions by understanding their culture. Numerous people have been arrested by not following their laws.