Dh42,000 lost in scam: UAE Ministry of Interior warns against fake trading platforms

The UAE Ministry of Interior (MoI) has issued a stern warning against fraudulent trading platforms that lure unsuspecting individuals with promises of easy profit and additional income. Authorities are urging the public to verify the authenticity and licensing of any trading platforms through the official website of the Securities and Commodities Authority before engaging in any activity.

In a cautionary tale shared as part of its ongoing awareness campaign “Don’t Fall for It”, the Ministry showcased the story of an individual who was defrauded of Dh42,000 after engaging with a bogus trading platform. The victim recounted receiving a message via social media offering a chance to increase his income without leaving his full-time job. The sender claimed the company offered a secure trading platform that could yield daily profits ranging between Dh100 and Dh325, depending on the time invested.

Initially convinced by small successful transactions—earning Dh10 for listing a product and Dh156 after depositing Dh120—the victim gradually increased his investment, building up a virtual balance of Dh42,000. However, when he attempted to withdraw the funds, he was told a technical error had occurred with his transfer code and was asked to pay an additional Dh42,000 to “unfreeze” his account—a fee he paid before realizing it was a scam.

Attempts to visit the company’s supposed local office or contact the representative via WhatsApp failed, confirming the fraudulent nature of the operation. The victim then reported the incident through the Ministry’s smart app.

The Security Media Department at the MoI, in collaboration with the Federal Criminal Police, launched a nationwide awareness campaign in mid-June titled “Don’t Fall for It”, aimed at educating the public about the dangers of online fraud. The campaign highlights common cybercrime tactics, methods of prevention, and the legal repercussions of committing or facilitating online fraud.

The initiative is part of the Ministry’s broader strategy to enhance public safety amid rising attempts to exploit individuals through fraudulent messages and suspicious links. It includes interactive activities, educational content across various media channels, expert interviews, social media influencer engagement, and multilingual digital content such as videos, real-life stories, and podcast episodes that shed light on actual scam cases.

The Ministry emphasizes the importance of reporting any suspicious messages or fraud attempts through its Cybercrime Reporting Platform available on the “MOIUAE” app.

In the third episode of the official Ministry podcast, Colonel Dr. Ibrahim Al Miyahi, Director of Digital Security at MoI, outlined the many forms of online fraud and the significant financial and emotional damage they can cause. He detailed the latest tactics employed by cybercriminals and provided guidance on protecting personal and financial information.

Al Miyahi described online fraud as increasingly dangerous and sophisticated, citing the UAE’s Federal Law on Combating Rumors and Cybercrimes, which defines online fraud as the unlawful acquisition of funds, services, or personal data through deceptive means using digital networks or electronic systems.

Al Miyahi highlighted that fake SMS messages impersonating official entities such as banks or government departments remain among the most common and deceptive fraud methods. These messages often contain fraudulent links requesting users to pay fines or fees, which—once clicked—result in theft of personal and banking information.

He noted that artificial intelligence tools have made it harder for individuals to distinguish between legitimate and fake content, allowing scammers to cast a wider net with minimal effort.

Security authorities have issued a stark warning about fraudulent trading platforms operated by international scammers based outside the UAE. These deceptive platforms lure unsuspecting individuals with promises of lucrative investment opportunities in trading and other business ventures—only to seize their funds.

Authorities noted that victims of such crimes typically seek help only after voluntarily transferring significant sums to these platforms. While law enforcement agencies exert maximum effort to track and take action against these fraudsters, many of them operate from countries that either lack extradition agreements or provide environments that allow such criminal activities to thrive. In such cases, authorities say, there is often little that can be done to recover the victims’ funds.

The authorities are urging anyone looking to invest in financial markets to work exclusively with licensed companies operating within the UAE. These companies offer the necessary legal protections for investors and operate under a regulatory framework that holds all parties accountable. A major concern, they say, is that many individuals lack basic investment knowledge and fall prey to misleading offers on social media, driven by the allure of quick profits.

Financial market experts echo these concerns, emphasizing that it is often difficult to distinguish between licensed and unlicensed trading companies—especially for beginners. Many fraudulent companies operate under the guise of legitimacy, making it nearly impossible for inexperienced investors to identify the risk.

Experts advise consulting qualified professionals before investing. The UAE is home to a broad selection of reputable, licensed companies that offer safe trading environments across both local and international markets. However, the global online trading space remains open and largely unregulated, making it a fertile ground for fraudulent actors.

Authorities have received numerous complaints from individuals who claim they were unable to withdraw their funds from platforms they invested in—platforms that often vanish after operating solely through websites and phone numbers.

In response, law enforcement agencies consistently advise investors to seek guidance from experts and to choose platforms that have a proven track record of smooth and secure transactions, including the ability to withdraw funds without complication.