Up to $125 million loan offered to UAE consumers in new scam, Dubai authority warns

Dubai authority warns con artists impersonate government body to defraud residents

Last updated: December 18, 2018 | 11:46

2 MIN READ

A huge pile of cash. (Image is for illustration purposes only.)

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Are you in need of emergency money? Be wary who you're dealing with, as you could be transacting with a scammer, a government authority warns
Scammers are contacting clueless consumers, promising them that they could procure loans of up to $125 million
The catch is that they have to pay certain fees first before they could get their hands on the cash

Dubai: Scammers are upping the ante and they’re now doing the rounds to offer UAE residents access to loans worth millions of dirhams.

In a warning released on Monday, the Dubai Financial Services Authority (DFSA) alerted the financial services community and the public about an advance fee scam in which fraudsters use fake emails and documents using the name of the Dubai International Financial Centre Authority (DIFC Authority).

Unsuspecting consumers are being led to believe that they can procure loans worth up to $125 million (Dh460 million), according to DFSA.

To make their offer look credible, the scammers provide a fake loan agreement document that bears the DIFC’s logo, as well as the name of the DIFC governor.

They then tell consumers that they first need to pay the following fees in order to obtain the loan:

1. $10,000 for handling fees, which fraudsters say will not be refunded; and

2. $400,000 for expenses required to facilitate the loan, which can be refunded later.

Con artists also use a false DIFC letter purportedly from the DIFC’s “Loan Committee.”

The DFSA said consumers should bear in mind that the DIFC Authority does not provide loans, hence it does not collect any fees or charges in relation to any financing.

A copy of the fake document used by scammers shows the DIFC logo.

“The identity of the governor of the DIFC has been used without authority and for a malicious purpose,” the DFSA said.

“The DFSA strongly advises that individuals do not respond to any communication regarding the scam, and under no circumstances should they send any money to any party involved in the scam,” it added.

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