Fraudulent Schemes Exposed in the UAE
A recent analysis of suspicious transaction reports and suspicious activity reports has revealed a plethora of fraudulent schemes targeting victims in the United Arab Emirates. The schemes, which have been identified as Redirection Fraud, Scam Fraud, Phishing/ Vishing, Forgery/Counterfeiting, and others, have resulted in significant financial losses for individuals and companies alike.
Redirection Fraud
In this type of fraud, scammers pose as suppliers or service providers and trick victims into changing their bank account payee details. The scam typically involves forged documents, such as contracts and invoices, which are designed to deceive the victim into transferring funds to a fraudulent account.
Scam Fraud
Scam fraudsters use sophisticated techniques to deceive their targets into divulging confidential information or credentials in order to gain monetary or personal benefits. Examples of scam fraud include:
- Fake products/fake websites fraud
- Fake visa/ticketing fraud
- Investment scams
Phishing/Vishing
Phishing and vishing are types of fraud where scammers obtain victims’ sensitive information or credentials online or over the phone. In phishing attacks, victims are tricked into clicking on malicious links or providing personal information to fraudulent websites. Vishing attacks involve scammers convincing victims to reveal their personal or sensitive information over the phone.
Forgery/Counterfeiting
Forgery and counterfeiting involve the unlawful alteration or imitation of genuine instruments or documents. Examples include:
- Signature forgery
- Cheque forgery
- Creating false identity documents
Risk Indicators
The UAE Financial Intelligence Unit (FIU) has identified several risk indicators that may suggest fraudulent activity is taking place. These indicators include:
- Submitting documents with false statements or entries
- Falsifying or concealing material facts
- Discrepancies in reported facts and supporting documentation
- Altered or inadequate supporting documentation
- Unusual wire transfers or withdrawals
Case Examples
The UAE FIU has received several reports of fraudulent activity, including a case of advance payment fraud. In this case, two individuals submitted suspicious transaction reports concerning a scheme where they were tricked into making an advance payment to a fraudulent supplier.
In light of these findings, the UAE FIU is urging citizens and businesses to remain vigilant against fraudulent schemes and to report any suspicious activity to the authorities. By working together, we can combat fraud and protect our financial systems.