Trading scam smashed

Dubai: The Dubai Financial Services Authority (DFSA) said on Thursday it has broken a global currency trading scam.

The scam invited investors in Australia and Singapore to put their money in fictitious entities which claimed to be based in the Dubai International Financial Centre (DIFC).

One alleged operative, who liaised with potential investors using a UAE phone number, has been arrested in Dubai. At least six fraud victims contacted the DIFC regulator, leading to a four-week investigation.

"At this stage we cannot be certain about the size of the scam or investor losses, but we know that approximately $600,000 [about Dh2.2 million] has passed through a bank account set up by these fraudsters in Malaysia," DFSA chief executive David Knott said.

The probe was conducted by DFSA and with the Emirates Securities and Commodities Authority and involved market regulators from Malaysia, Britain, the US and Singapore.

The racket operated three fictitious entities called the Dubai Options Exchange, the UAE Commodities Futures Board and Cambridge Capital Trading. All claimed to offer services within the DIFC.

The fraudsters used a US-based internet service provider. Australian and Singaporean investors were cold called by representatives of Cambridge Capital Trading to take options on currency movements.

The investors were then directed to the false websites and told to transfer funds into the bank account in Malaysia.

DFSA has obtained injunctions in the DIFC Court against Husam Abu Amara, a French national, and others in the case.

His passport has been confiscated and the case referred to the Dubai prosecution. Abu Amara is the managing director of Globalstar Telecom that provided the phone number.

Police said it is investigating the case. "It is too early to give details or accuse any party at this stage," a police official said.

Have your say
Have you or anyone you know encountered this scam? How much money was lost? Has it affected your trust in the security of internet trading? Tell us.

I am doing a currency trade with a bank in the USA and I receive profits without any delay, so please be aware that some firms are trading legally.
Mohamed
Dubai,UAE