How to Report and Recover Lost Money in the UAE

The UAE is one of the world’s newest, most prolific, and fastest-growing financial hubs, but that also means it has increasingly become a target for cybercrime, financial scams, and fraud. 

According to a LexisNexis survey conducted since April 2023, “42 percent of (UAE) companies reported an increase in fraud,” with digital channels and online payment portals accounting for 52 percent of overall fraud losses. From 2019 to 2021, the UAE Financial Intelligence Unit (UAEFIU) accepted over 49,000 suspicious transaction reports (STR) and suspicious activity reports (SAR) were filed. While those related to fraud are going down, it’s clear that being a financial hub attracts criminals, and criminals are always innovating. 

Thankfully, the UAE has taken a strong stance against fraud and theft, with punishments ranging from heavy fines to imprisonment depending on the severity of the crime and value stolen. Still, knowing what to look for and how to report financial crimes will help you when growing accustomed to life and business in the UAE. 

What is Financial Fraud in UAE?

Financial Fraud in the UAE is when a group or individual tricks another entity into paying them or giving them financial information. In most cases, financial fraudsters in the UAE aim to deceive individuals or companies for monetary gain. The most common forms of UAE financial fraud are:

• Investment Scams: Schemes where individuals or companies promise high returns on investments that do not materialize. These are also known as Ponzi schemes or fake investment opportunities, and are common in the UAE where many companies and development projects begin.

• Credit Card Fraud: After gaining access to credit card information, a scammer uses that information to make purchases or withdrawals without the cardholder's consent. These can usually be stopped via the issuing bank, but recovering the money is not always possible. 

• Identity Theft: This type of fraud involves an individual gaining access to another person’s personal information like banking details or identification documents to commit fraud. With such information, a person can apply for credit cards or loans, take over your financial accounts, or sell them to other bad actors online.

• Insurance Fraud: Providing false information or making false claims to insurance companies for financial gain. The UAE’s insurance sector is rapidly expanding due to the growing economy, and scammers will attempt to stage accidents, make false claims, collude with other entities like healthcare providers, or fake theft to take advantage of insurance payouts. 

• Bank Fraud: This type of fraud involves fraudulent activities within banking institutions, such as forging signatures, manipulating accounts, or misappropriating funds. The Central Bank of UAE has issued a warning to be cautious when responding to emails that look like they came from them or their employees. 

• Cyber Fraud: This type of scam is conducted through online platforms. They involve phishing scams, malware attacks, and other cybercrime targeting financial transactions. The UAE has taken a strong stance against cybercrime and has introduced several ways to report any online fraud.

• Money Laundering: This is when illegally obtained funds are run through legitimate organizations to conceal their origin. It can also be done with transfers to foreign banks or offshore businesses. The issue is prominent enough that the UAE Central Bank has devoted an entire department to combating it. 

• Real Estate Fraud: Misrepresentation or deception in real estate transactions, such as inflated property values, false documentation, or illegal property flipping schemes, are all real estate fraud. Doing research into the reputation and solvency of an organization before making any purchases, investments, or commitments it recommended.

The UAE has stringent laws and regulations to defend against financial fraud. Bodies like the Central Bank of the UAE, the Dubai Financial Services Authority (DFSA), and the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) are in place to reduce and prevent fraud. Penalties for financial fraud in the UAE include fines, imprisonment, and deportation for expatriates involved in serious offenses.

General fraud has slowly decreased in the last five years while other forms of fraud have increased, indicating an increase in reporting accuracy in the UAE. Source: www.uaefiu.gov.ae

How to Report a Scammer in UAE

If you suspect you have been the victim of a scam of fraud, you should know how to gather materials that help support your claim. You should also know which authorities to contact, how to file a cheating case in the UAE or a complaint, and when to reach out to legal professionals that know the law and how best to serve your interests. 

First, gather information about the crime. Include any contact details you have from the suspected criminal, as well as communication you had with them including emails, messages, letters, or phone logs. Also include details about the scam itself, including the value of lost property or finances, how and where it happened to you, and how you got involved. 

Next, reach out to the proper authorities. The UAE has numerous reporting agencies for a plethora of different crimes, so try to choose the one that would handle your type of crime. If you’re not sure or need help deciding, you can call “999” to reach the police and either report the crime over the phone or ask them about the proper agency. Some of the more common agencies that handle fraud include: 

• UAE Central Bank or Dubai Economic Department (if in Dubai) - These agencies will handle most finance-related crimes. 
• Consumer Rights Department or Department of Economic Development (specific to each Emirate) - These agencies help with most commercial transactions or consumer rights issues. 

You can also report cybercrimes online in the UAE or call your local police to start the process. 

After you decide which agency is best suited to handle your incident, File a complaint by submitting a written statement, attaching your evidence, and providing personal information so the authorities can contact you. You may need to follow up with the agency handling your case from time to time, especially if you find any new evidence. 

Finally, if your loss involves significant financial loss or any legal issues that are difficult to understand, contact legal professionals like those at ConnectLegal. Lawyers are adept at handling complex legal situations and should understand the UAE’s legal procedures. Hiring a good lawyer can be the difference between recouping your losses and simply accepting your loss. 

How to Get Money Back After Being Scammed Online in UAE

The best way to get your money back after being scammed online is to make sure you document your evidence and report to the proper authorities. If that isn’t enough to recoup your losses, you should consider consulting and hiring a lawyer in the UAE. 

The most important part is to not give up: if you have been stolen from, UAE agencies will do everything they can to make it right. Where they lack jurisdiction, contact a legal team to help you locally or internationally. 

Hire the Best Lawyers for a Money Cheating Case in Dubai

Connect Legal UAE has been operating in the country for over a decade and is the best place to find a lawyer for your case, or to find clients looking for your expertise. Because Connect Legal facilitates legal assistance rather than running a law firm, you can be sure that the lawyers you find are interested and able to help you with your financial fraud issue. 

For fraud cases in the UAE, you should research a large list of lawyers who have the expertise and experience to handle your case. You should know their qualifications, reputation, and their fees for both legal representation and consulting services. It can sound daunting, and urgency is required after being scammed, which is why Connect Legal was founded. 

They handle the difficult step of making sure you can find a reputable lawyer with the proper qualifications and know-how so all you have to do is contact them. Everything from their fees to their experience is on Connect Legal; all you have to do is send a message. 

If you’ve been scammed in the UAE and need help quickly, try Connect Legal for an easy way to find a great lawyer today.