Dubai regulator warns of scam which impersonates DFSA

The Dubai Financial Service Authority warned the financial services industry as well as members of the public to be on the look-out for “a fraudulent scheme in which the DFSA has been impersonated”.

This particular scam involves someone by the name of “Yusuf Hassan Abdulrahman” who “claims to be the DFSA’s ‘Head of Recovery Department’,” who reaches out to consumers via emails and letters, with offers of a large loan (worth US$527m), the DFSA said in a statement on its website, posted on Sunday.

In order to access this loan, the consumers are told they must set up a special purpose vehicle (SPV), which they must then pay a fee to activate, the DFSA statement said.

“Once the fees to activate the SPV are paid, the scammers then tell consumers that the transfer of their loan funds has been put ‘on hold’ because the purported transfer has ‘violated the Middle East Fund Transfer Law’,” the DFSA said.

“The consumers are required to pay further fees, and an insurance premium, to allegedly several government ‘authorities’, so that the loan funds can be released.”

The DFSA goes on to note that “there is no such law as the Middle East Fund Transfer Law”; “Yusuf Hassan Abdulrahman is not an employee of the DFSA”; the DFSA does not have a department called “Recovery”; the DFSA “does not validate loan agreements, and therefore does not charge fees for validating loan agreements”; and finally, “the DFSA does not charge fees, or require the payment of fees, for loan transactions or the transfer of loan funds”.

The regulator said it strongly advises individuals who are approached by the scammers  not to respond to any communication from them, and under no circumstances to send them any money.

 

To see a copy of the false DFSA letter and false payment receipt from “Her Majesty’s Courts Services”, click here. 

To view the DFSA’s warning on its website, click here.

ABOUT THE AUTHOR
Helen Burggraf
Helen Burggraf is the editor of International Investment. A US-trained journalist, she has worked in Rome, New York City and London, covering everything from the fashion and retailing industries to the global drinking water and water-treatment sector, private equity, and most recently, the international cross-border financial services/advice industry.

Read more from Helen Burggraf

preloader
Close Window
View the Magazine





You need to fill all required fields!