Expats in UAE warned over scam social media investment offerings

Published:  31 Dec at 6 PM
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Expats in the UAE are being warned not to fall for fake investment scams on social media.

Warnings about fake investment schemes promising quick returns at high rates are being given out by Kuwait’s Capital Markets Authority and its Ministry of Commerce. The enticing offers are found on social media and are phrased in such a way as to attract both Kuwaitis and expatriates working in the UAE. ‘Learn how to earn extra monthly income at as much as Dh1,500 to 1,700 a week’ is one phrase calculated to entrap those unfamiliar with the financial markets as well as those who’ve not been aware of the high number of financial scammers operating across the Gulf States.

According to the two UAE authorities, the people behind these scams don’t give company or personal names, nor to they state the nature of their businesses, but they do claim they have the correct licenses to be able to operate. Sources from the Capital Markets Authority and the Ministry of Commerce state unequivocally that they are not registered and are illegal as a result. Both expats and UAE citizens are raising questions with the Ministry as well as Kuwait’s central bank as to their position on the attempted online scams.

It seems those responsible for the social media posts are using the trade names of fictitious companies linked to real companies with names and trademarks registered with the financial authorities. The practice is, of course, illegal, with experts claiming it’s a time bomb resembling the recent real estate fraud attempts. Those in the know suggest the scams are being perpetrated by organised crime gangs and are aimed at dealers as well as at the general public. Virtual currencies are part of the scam, as are other investments not included in official frameworks. Expats are being reminded of that well-known phrase and saying – if it sounds too good to be true, it isn’t true.
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