Scams have become a significant issue in the UAE, with tens of thousands of residents losing life savings to fraudulent schemes. A recent study reveals that 90% of UAE consumers are at risk of responding to scammers, as 9 in 10 people are likely to overlook common fraud warning signs. Even more alarming is that 17% of the victims have been tricked multiple times, surpassing the global average of 15%.
Last year, over 40,000 UAE residents lost millions to Ponzi and pyramid scams, crypto fraud, and bogus trading platforms. While people are generally wary of password reset requests, scammers employ extremely persuasive tactics, such as claiming a parcel is held up at customs, notifying about a subscription expiration, or offering a free voucher for a popular brand. About 77% of people in the UAE would happily press forward if a message had a positive hook, like “free gift,” “you’ve been selected,” or “you’re a winner.”
Common scams include falsely advertised products on online platforms and fraudulent websites. Scam methods such as fraud, phishing, and spoofing are significant threats, comprising 55% of the total cyber incidents in the UAE. These methods often involve sophisticated social engineering tactics to deceive victims into unwittingly disclosing sensitive information or credentials. Overall, 44% of UAE retailers were affected by fraudulent incidents related to cyberattacks.
Which Scams Stood Out in the Last Year?
In 2023-24, notable scams included BlueChip, which swindled Dh250 million, and the Sky Media and Metaverse Foreign Exchange (MTFE) schemes, which targeted thousands of people. SkyMedia is an “earning app” that claims partnerships with YouTube, TikTok, and Facebook, promising a daily income of Dh28 just for watching videos and interacting with posts. Likewise, MTFE promises an earnings bonanza of $40 each week with just a $500 investment into cryptocurrency. MTFE’s Dubai Support Team alone boasts nearly 10,000 members on Facebook, while their Telegram channel has over 71,000 subscribers. Typical investments by users into fraudulent schemes range from $1,000 to $25,000.
Many UAE residents also fall victim to forex and stock trading platforms that operate fraudulently. These scams often involve promises of high returns and aggressive marketing, preying on educated residents blinded by the lure of quick profits. Scammers typically have professional-looking websites and may sound very knowledgeable about the securities they are trying to sell.
Additionally, cybercriminals purporting to be from official bodies like Dubai Police or the Department of Criminal Investigation (CID) often feign urgency to spur people into action, such as paying traffic fines or credit card fees. Newcomers to the UAE, in particular, fall prey to these scams as they may feel compelled to comply with what they believe are legitimate institutional requests. Such communications often originate from countries such as Nigeria, India, Romania, and Pakistan using mobile numbers.
Government and Industry Actions to Combat Scams
The UAE government has implemented stricter regulations, launched awareness campaigns, and worked with law enforcement agencies to tackle scams. Authorities have collaborated with financial institutions to monitor suspicious transactions and block fraudulent accounts. Consumer protection agencies are educating the public on the dangers of online scams, while the Central Bank and telecommunications companies have issued advisories to warn residents about potential threats.
The UAE’s Cyber Security Council has introduced a free online tool called “Stay Safe” in partnership with etisalat by e& and the Global Anti-Scam Alliance: staysafe.csc.gov.ae. The website allows people to check if a website is legitimate or potentially an online phishing scam. Emirates NBD has launched a UAE-wide safe banking campaign after reports of customers being targeted by fraudsters. Emirates Post also proactively combats fraudulent online schemes.
Safe browsing practices include raising awareness through education, being cautious of promises of high returns, and verifying the legitimacy of investment opportunities. Authorities recommend only dealing with licensed and regulated entities and avoiding sharing personal or financial information with unknown sources. User awareness and training in mitigating socially engineered threats are paramount. Consumers should also be aware of red flags like pressure tactics and unsolicited offers. Suspicious activity should be reported to the Dubai Financial Services Authority (DFSA) or Abu Dhabi Securities Exchange (ADSE).
Strengthening Consumer Protections Against Scams
To enhance monitoring and compliance, the Cyber Security Council should introduce mandatory real-time threat intelligence-sharing platforms, where financial institutions and consumers can quickly report and access scam alerts, ensuring faster response and prevention of widespread damage. While the government has already introduced consumer protection laws and telemarketing regulations, expanding these initiatives with real-time fraud reporting systems and faster dispute resolution could further empower consumers. By enforcing stricter regulations on online investment and trading platforms, ensuring they are properly licensed, the Council can help consumers distinguish legitimate businesses from fraudulent ones.
As cybercriminals continue to refine their tactics, leveraging cutting-edge technology is essential to counter online fraud effectively. Netsweeper plays a key role in strengthening consumer protections by providing AI-driven web filtering and real-time threat intelligence solutions. Through partnerships with regulatory bodies and financial institutions, Netsweeper helps identify and block deceptive websites, phishing scams, and fraudulent trading platforms before they can cause harm.
By utilizing solutions like nsEnforce and nsClear, governments and organizations can adopt a proactive approach to scam prevention by:
- Detecting and blocking fraudulent websites before consumers engage with them.
- Monitoring digital activity to identify emerging scam tactics in real time.
- Supporting regulatory enforcement, ensuring compliance with anti-fraud measures.
By implementing these advanced countermeasures, authorities can disrupt fraudulent operations, enhance digital security, and reduce the risks faced by consumers. Leveraging AI-driven content filtering and real-time fraud detection ensures a safer online environment, making it increasingly difficult for cybercriminals to deceive unsuspecting victims.
Key Statistics from the 2024 State of Scams Report
The 2024 State of Scams in the United Arab Emirates report is an annual study conducted by the Global Anti-Scam Alliance (GASA), Trends Research, and BioCatch. This year’s survey was completed by 1,964 UAE citizens.
- 56% of the UAE population receives a scam attempt at least once per month.
- 50% believe they have encountered an AI-generated scam in the last 12 months.
- 49% of scams are completed within 24 hours of first contact.
- 27% of UAE survey participants reported having lost money to a scam, with an average loss of $2,194.
- Only 9% of victims in the survey were able to fully recover their losses.
- 62% of UAE residents trust the internet less due to scams.
- Shopping scams and identity theft are the most common frauds, followed by investment scams.
Building a More Secure UAE
Scams in the UAE have reached alarming levels, with more residents being targeted by increasingly sophisticated fraud tactics. While government initiatives and financial institutions are taking proactive steps to combat fraud, consumer awareness remains a critical line of defence. Practicing safe browsing habits, staying informed about emerging threats, and reporting suspicious activity are essential for reducing risks.
Stronger regulatory measures and increased collaboration between public and private sectors will further enhance digital security. Want to see how Netsweeper can help protect against online fraud? Schedule a free demo today and discover how our advanced filtering solutions can safeguard consumers and businesses from cyberthreats.