U.A.E Online Frauds: heavy lose in 2023, What You Need to Know to Stay Safe

 Just two days ago, I stumbled upon an enticing offer online: a NOL Card for unlimited Dubai Metro travel for a year, all for a mere AED 8! Offered by what appeared to be the Roads and Transport Authority (RTA) of Dubai

, it seemed too good to miss. However, upon closer inspection, a red flag went up – the payment wasn't directed to the official RTA channels but to a US web payment system. Alarm bells instantly started ringing. 

Intuition often proves right, and this was no exception. My suspicions led me to report the offer to my bank, ADCB. Their investigation confirmed my fears: it was a fraudulent scheme. Thankfully, they promptly canceled my old debit card and issued a new one, safeguarding my finances. 

This close call spurred me to write this article, not just to share my experience, but to warn fellow residents about the prevalence of online scams targeting unsuspecting individuals. 

Remember, if something seems too good to be true, it probably is. Always be cautious of online offers, especially those:

• Promising unrealistic deals or benefits.
• Requesting payment through unofficial channels.
• Pressuring you for immediate action..

online fraud in the UAE has reached concerning levels, with estimates reaching billions of dirhams in recent years. Here's a breakdown of the situation:

The scope of the problem:

·       A Sharjah Police official reported a 50% increase in cybercrime and electronic fraud reports in 2023 compared to the previous year.

·       Total e-commerce in the UAE reached over $5 billion in 2021 and is anticipated to surpass $8 billion by 2025, creating a larger playing field for fraudsters.

·       Juniper Research estimates merchant losses to online payment fraud will exceed $200 billion between 2021 and 2025 globally, highlighting the widespread issue.

Common types of fraud:

Phishing scams: Fake emails or messages impersonating legitimate organizations like banks or government agencies trick victims into revealing personal information.

Online shopping fraud: Fraudulent online stores lure customers with unrealistically low prices, taking their money but never delivering the products.

Credit card fraud: Fraudsters steal credit card details through various means like skimming devices, data breaches, or phishing, and use them for unauthorized purchases.

Emotional cyber frauds: Manipulating victims' emotions, scammers pose as loved ones in need or offer unrealistic investment opportunities to steal money.

Impact of fraud:

Financial losses for victims can be significant, impacting their credit scores and emotional well-being.

Businesses suffer reputational damage and financial losses due to chargebacks and fraudulent transactions.

The overall digital economy's growth can be hampered by a lack of trust and security concerns.

Combating online fraud:

The UAE government and law enforcement agencies are actively involved in:

Raising awareness: Public campaigns educate people about common scams and safety measures.

Investing in cybersecurity: Strengthening infrastructure and regulations to protect data and systems.

Cracking down on cybercriminals: Apprehending and prosecuting individuals involved in online fraud.

Staying safe online:

·       Be cautious about sharing personal information online, especially with unknown senders.

·       Verify the legitimacy of websites and emails before clicking on links or entering data.

·       Use strong and unique passwords for all your online accounts.

·       Monitor your bank and credit card statements regularly for suspicious activity.

·       Stay informed about the latest online fraud scams through official channels.

·       By working together, individuals, businesses, and authorities can create a safer online environment in the UAE and minimize the impact of online fraud.

Online fraud is on the rise in the UAE, with reports showing a significant increase in recent years. Here are some key points to consider:

 Increase in cybercrime: A Sharjah Police official reported a 50% increase in cybercrime and electronic fraud reports in 2023 compared to the previous year.

Common types of fraud: Phishing scams, online shopping fraud, credit card fraud, and emotional cyber fraud are some of the most common types of online fraud reported in the UAE.

Reasons for the increase: The UAE's growing digital economy, high internet penetration, and large population of affluent individuals make it a target for cybercriminals. Additionally, the COVID-19 pandemic led to a surge in online activity, which created more opportunities for fraudsters.

Impact of fraud: Online fraud can have a significant financial impact on victims, as well as damage their credit score and emotional well-being.

Authorities' efforts: The UAE government and law enforcement agencies are taking steps to combat online fraud, such as raising awareness, investing in cybersecurity, and cracking down on cyber criminals.

Here are some specific examples of online fraud that have been reported in the UAE:

Phishing scams: Fraudsters send emails or text messages that appear to be from legitimate companies or organizations, such as banks or government agencies. The emails or text messages often contain links that, when clicked, take the victim to a fake website that looks like the real website. Once the victim enters their personal information on the fake website, the fraudster can steal it.

Online shopping fraud: Fraudsters create fake online stores that offer products at very low prices. When a customer makes a purchase, the fraudster takes their money but never sends them the product.

Credit card fraud: Fraudsters can steal credit card information through a variety of ways, such as skimming devices, data breaches, and phishing scams. Once they have a victim's credit card information, they can use it to make unauthorized purchases.

Emotional cyber frauds: Fraudsters use emotional manipulation to trick victims into giving them money. For example, they may pretend to be a loved one in distress or offer a get-rich-quick scheme.

Here are some tips for staying safe from online fraud in the UAE:

·       Be careful about what information you share online. Never share your personal information, such as your bank account number or Social Security number, with anyone you don't know and trust.

·       Be suspicious of unsolicited emails and text messages. Don't click on links or open attachments from senders you don't know.

·       Only shop on websites that you know and trust. Look for the padlock symbol in your browser's address bar and make sure the website address is spelled correctly.

·       Use strong passwords and keep them safe. Don't use the same password for multiple accounts.

·       Monitor your bank statements and credit card statements regularly. Report any suspicious activity to your bank or credit card company immediately.

·       Stay informed about the latest online fraud scams. The UAE government and law enforcement agencies often publish information about the latest scams on their websites.

·       By following these tips, you can help protect yourself from online fraud in the UAE.

 Unfortunately, recouping money lost in online fraud for UAE residents, or anywhere else for that matter, is not always possible.  However, some steps can be taken to try and recover the funds and protect yourself from further harm: 

Immediately after realizing the scam: 

Report the scam to the authorities: File a police report with the Dubai Police or your local Emirati police station. They may be able to investigate the case and track down the scammers.

Contact your bank or financial institution: Inform them about the fraudulent activity and ask them to block your accounts and cancel any unauthorized transactions. They may also be able to help you recover some of the lost funds.

Report the scam to the relevant platform: If the scam occurred on a specific platform, such as an online marketplace or social media site, report it to them as well. They may be able to take action against the scammer and help you recover your account.

Gather evidence: Keep copies of all relevant documents, such as emails, text messages, and bank statements, as they may be helpful in your case.

Additional possibilities, depending on the specific circumstances:

Chargeback: If the fraudulent transaction was made with a credit card, you may be able to file a chargeback with your credit card company. This involves requesting that the company reverse the transaction and return your money.

Civil lawsuit: If you have lost a significant amount of money, you may want to consider filing a civil lawsuit against the scammer. However, this can be a lengthy and expensive process, and there is no guarantee that you will be successful. 

U.A.E amended Federal Law to control Cyber Crimes

Sheikh Khalifa issued Federal Law No. 12/2016 amending Federal Law No. 5/2012 on combating information technology crimes.

Article 1 provides for replacing the text of Article 9 of Federal Law No. 9/2012 as follows:

Whoever uses a fraudulent computer network protocol address (IP address) by using a false address or a third-party address by any other means for the purpose of committing a crime or preventing its discovery, shall be punished by temporary imprisonment and a fine of no less than Dh500,000 and not exceeding Dh2,000,000, or either of these two penalties.

Article 2 of the law states that the law shall be published in the Official ‘Gazette’ and shall come into effect the day following publication.

Ministry of Foreign Affairs

Federal Law No. 10/2016 amends some of the provisions of Federal Law No. 45/1992 on regulating the work of the Ministry of Foreign Affairs.

The first article of the law, published in the latest issue of the Official ‘Gazette’, changes the text of Clause 10 of Article 2 of Federal Law No. 45/1992 and replaces it with the following text:

Issuance and renewal of diplomatic and special passports for nationals of the state as well as service passports. Specifying the eligible groups (of people) and rules for issuing these passports as an exception from the provisions of Federal Law No. 17/1972 on naturalisation and passports and amendments. A diplomatic or special passport is given to groups of people, who are not specified in the previous clause, excluding their families, and by virtue of a decision made by the President or the Vice-President of the State, based on a proposal from the Foreign Minister.

Article 2 states that each and any provision that contradicts the provisions of this law shall be abolished.

Article 3 provides for the publication of this law in the Official Gazette and that it will come into effect the day after publication.

National Media Council 

Sheikh Khalifa also issued Federal Law No. 11/ 2016 regulating the competencies of the National Media Council. 

According to the law, the National Media Council is the federal government body established to oversee and undertake the media affairs of the United Arab Emirates. It has corporate character, an independent budget and the legal capacity required to undertake all activities to ensure achievement of its goals. It is a government body affiliated with the Cabinet and shall have its seat in Abu Dhabi City. The Council may set up branches and offices inside and outside the UAE.

Article 4 of the law states the objectives of the NMC and accordingly it shall develop the UAE's media policy, draft media legislation and ensure its execution and co-ordinate the media policy between the emirates, in line with the UAE's domestic and foreign policy to ensure support for the Federation of the UAE and project national unity.

Article 5 states the NMC's scope of jurisdiction which includes the following:

Developing and executing the required policies and plans to develop the media sector; proposing bills and regulations relating to the work of the Council in coordination with the relevant authorities in the country; proposing regulations, standards and foundations required for licensing and accrediting media outlets and their staff and activities, including e-publishing; issuing rules and regulations that ensure the achievement of the Council's goals in line with the controls it specifies; coordinating with the authorities of media free zones on developing an organisational framework to regulate the Council's relationship with these zones; representing the UAE at media meetings, events and activities in and outside the UAE; undertaking any other relevant responsibilities specified by the Cabinet's regulations and resolutions.

Article 6 states that a Board of Directors, formed by virtue of a decision issued by the Cabinet, shall run the Council.

Article 7 states that the Board of Directors is the supreme authority of the Council and shall accordingly exercise all its powers and the required authority. It may develop the Council's general policy, propose amendments to the required plans and follow up the plans for their execution, propose draft regulations pertaining to the work and competencies of the Council as well as to the achievement of its objectives and submitting the same to the Cabinet for approval as well as the preparing of a draft organisational structure for the Council, specifying the responsibilities and competencies and departments of the Council, and submit the same to the Cabinet for approval, propose a draft annual budget for the Council and a draft annual closing account in addition to any other competencies delegated to the Board by the laws, regulations and resolutions issued by the Cabinet. The Board may also delegate some of its competencies to its Chairman.

According to the law, the Chairman of the National Media Council is responsible for overseeing the management of the Council for all aspects in line with the provisions of the Council's effective regulations. The Council shall have a director general, to be appointed by virtue of a federal law based on a proposal from the Chairman, who will be the legal representative of the Council. The Board of Directors shall issue a decision specifying the Chairman's competencies and jurisdiction.

Article 10, a clause about the standards and regulations issued by the Council, states that media organisations in the state must comply with the regulations and rules issued by the Council, as well as commit themselves to provide information and data required by the Council to achieve its objectives.

Article 11 states that the fiscal year of the Council shall start on the 1st of January and ends on the 31st of December every year.

According to the law, regulations and decisions which are effective in the National Media Council shall remain enforced at the time of issuance of the law without conflict with its provisions.

The law shall be published in the Official ‘Gazette’ and will come into effect the day following publication.