Authorities and experts in Dubai warn residents against sophisticated unlicensed online trading schemes circulating on social media, which have already caused significant financial losses and use advanced digital tactics to deceive victims.
Dubai authorities and legal, cybersecurity and psychological specialists are warning residents against unlicensed online trading platforms that promise quick profits through social media, saying many are tied to organised fraud networks that use sophisticated digital tactics to steal money.
The alerts come as fake investment adverts continue to circulate across WhatsApp, Telegram, Instagram and other platforms, often presenting themselves as gateways to global markets in gold, oil, currencies, shares, cryptocurrencies and indices. According to Emirates247, victims are typically drawn in by claims of easy income and financial freedom, only to discover that the platforms are designed to extract deposits rather than generate legitimate returns.
Several residents have already reported losses running into tens of thousands of dirhams. One victim said he transferred AED85,711 after being approached on WhatsApp and moved into a Telegram group that dangled payments for simple tasks. Another said he lost AED200,000 after being promised regular profits, while a third said she was out AED70,000 after being persuaded through Instagram and WhatsApp. Gulf News also reported a separate case in which a victim lost Dh42,000 after a bogus platform initially showed small gains before demanding more money to “unfreeze” the account.
Experts say the frauds work because they exploit predictable human behaviour as much as technical ignorance. Psychological consultant Medhat Al-Sabahi said scammers rely on fear of missing out, trust in apparent authority, peer influence, overconfidence and pressure to act quickly. They often start with small sums, provide fake early gains and then push victims to invest more, a pattern echoed in guidance from the Abu Dhabi Judicial Department, which has warned that scammers commonly use early rewards to build confidence before taking larger amounts.
Cybersecurity specialist Abdul Noor Sami said the scams have become more polished, with professional-looking websites, fabricated testimonials, fake certificates, deepfake videos and round-the-clock chatbots all used to create the impression of a real trading operation. He said many schemes also use complex fund transfers and digital wallets, making them difficult to shut down once they cross jurisdictions.
Legal experts say anyone who promotes such platforms without checking their status could face liability. Lawyer Salem Obaid Al-Naqbi said promoters may be exposed to civil and criminal claims if they knowingly help attract victims, including prosecution as accomplices to cyber fraud and orders to compensate losses. Lawyer Salem Saeed Al-Haiqi said liability can extend to anyone who advertises an unlicensed platform without first confirming it is authorised.
The warning also carries a clear legal dimension. Article 48 of Federal Decree-Law No. 34 of 2021 on combating rumours and cybercrimes covers misleading online advertising and the promotion of unlicensed virtual or digital currencies, with penalties that can include imprisonment and fines of AED20,000 to AED500,000. The UAE Ministry of Interior, the Securities and Commodities Authority and other official bodies have separately urged the public to verify licences before depositing money, avoid offers that promise high returns with little or no risk and report suspicious platforms immediately.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
