Dubai: The financial authority in Dubai has warned residents not to deal with a fake bank, which claims to offer easy loans in return for a fee.
The Dubai Financial Services Authority (DFSA) issued a public service announcement on Wednesday, alerting the financial services community and the public about a fraudulent scam promoted by "Skyo Microfinance Bank Limited".
The scam offered “easy loan approvals in return for a fee to be transferred”.
As part of the scam, Skyo Microfinance Bank Limited requested individuals to transfer a fee to finance an insurance policy against the loan in addition to the administrative fees. It also displayed a false Certificate of Incorporation purportedly issued by the DFSA.
In a statement, the DFSA confirmed that it does not issue Certificates of Incorporation of any kind to any company, firm or individual.
The fake certificate, which was used by Skyo Microfinance Bank Limited, was posted on the DFSA’s website to prevent residents from becoming the next victim.
The DFSA urged members of the public not to transfer money to the fake bank, and also advised against responding to Skyo Microfinance Bank or any other person or company representing the firm.
How to avoid scams
Always keep your paperwork in a safe place. When entering into any new type of financial relationship, it is vital to properly store all paperwork you receive, and keep records of all your meetings and conversations.
- Check the relevant regulatory agency’s website to see if the company you are dealing with is listed and regulated. You can contact the regulator to verify whether the company is regulated.
- Do a general search on the internet to check what information can be found about the company you are dealing with.
- Only deal with people you trust. Dealing with individuals you have never met carries a higher risk.
- Get independent advice before entering into a transaction, or getting a second opinion from a trusted friend.
- Use common sense.
Be wary of the tell-tale signs of a scam, such as people who:
- Only communicate via email and telephone with a reluctance or a refusal to meet in person.
- Always reluctant or refuse to provide information on who regulates their activity.
- Uses a generic email address such as Hotmail and Yahoo.
Source: Dubai Financial Services Authority