DFSA warns public after foiling investment scam

Dubai: The Dubai Financial Services Authority (DFSA) yesterday warned investors to exercise caution when investing through online portals after foiling yet another internet scam.

The warning came after DFSA closed down www.smiequity.com, a Dubai-hosted website used to front an unlicensed investment company, SMI Equity, using the UAE as a base address on the website.

The DFSA was alerted to the unlicensed operation by an investor in the Czech Republic who had deposited $45,000 (Dh165,510) into the bank account of SMI Equity and received no response.

The DFSA immediately contacted the website host provider in Dubai and arranged to close the website down. David Knott, DFSA Chief Executive, said: "The internet has added a fantastic dimension to our lives but has also opened up prospects for criminals to prey on the public."

The authority urged investors not to respond to unsolicited emails that ask for money without first checking with an adviser.