How to Avoid Being Scammed
If it sounds too good to be true, it probably is!
The ASMEC’s Role
Scammers cheat people out of their money. ASMEC, as the financial services regulator of the centre, takes action wherever possible to stop scammers who target or misuse the financial centre to promote fraud.
Many scammers remain anonymous and out of reach of regulatory authorities, making consumer education an important tool to minimise this threat. ASMEC regularly publishes alerts about the most recent scams affecting investors and institutions.
How to Contact Us
Please contact ASMEC as soon as possible if you have information about a scam that has been perpetrated in, from, or through the centre; or which uses the name of ASMEC or persons associated with it.
Typical Scams
Cold Calling
Cold calling is unsolicited contact through phone, email or fax. Although not always a scam, it is a common way scammers first reach potential victims. Buying financial products from unlicensed overseas firms is high risk.
Fake Bank Emails / Phishing
These scams involve fraudulent emails pretending to be from banks or financial institutions asking for account or PIN details. Fraudsters use realistic logos, links, and fine print to deceive recipients.
Banks and legitimate institutions will never request personal financial details online.
Ponzi Schemes
A Ponzi scheme pays returns to earlier investors using funds from new investors. The scheme collapses once new investment slows down. Promoters often promise secure, high returns to attract participants.
Lottery Scams
These scams involve fake notifications of lottery winnings requiring “fees” to release funds. Victims never receive any actual prize, and the scammers disappear after collecting the payments.
Boiler Room Scams
Boiler room scams involve aggressive sales of worthless or illiquid shares. Operators often claim to represent reputable firms but are usually based overseas and vanish once funds are received.
Advance Fee Frauds
Victims are persuaded to pay advance fees in the hope of large rewards, such as helping to transfer funds or business deals. The gains never materialise, and the money paid is lost.
How to Avoid Being Scammed
You can avoid being scammed by:
- Checking if the company is listed and regulated by the relevant authority.
- Researching the company online before engaging with it.
- Verifying that email domains match the company’s official website.
- Dealing only with trusted individuals and organisations.
- Seeking independent advice or a second opinion.
- Using common sense and avoiding pressure tactics.
Be wary of people who:
- Refuse to meet in person or provide regulatory details.
- Use generic email addresses (e.g. Hotmail, Yahoo).
- Encourage urgency or secrecy in transactions.
Remember:
- If an offer sounds too good to be true, it probably is.
- Do not invest in opportunities that promise quick, effortless profits.
DO NOT INVEST!
Who to Contact
To report scams or seek advice, you can contact the following authorities:
- ASMEC: The independent regulator of financial services within the financial centre.
- Securities and Commodities Authority: Oversees securities and commodities across the UAE.
- Central Bank of the UAE: Regulates banking and credit institutions in the UAE.
- Dubai Police: Handles reports of fraud and economic crimes.
Lists of Common Scams
Lists and details of common scams can be found through international and regional financial regulators’ public resources, which regularly publish alerts on fraudulent activities.
