Warning issued to UAE residents about a scam involving fraudsters using the name of a trading company
UAE residents are being warned about a fresh wave of fraudsters pretending to be genuine businesses in order to cheat unaware investors. These scammers are employing the names and information of legitimate and respected companies to establish a false sense of legitimacy and credibility. They frequently reach out to potential targets using emails, phone calls, and social media, offering bogus investment opportunities that guarantee high profits with low risk. The con artists employ advanced methods to mimic official communication channels, such as fake websites and documents, creating challenges for people to differentiate between real and deceitful proposals.
Officials are advising individuals to be very careful and confirm the legitimacy of any investment offer before investing money. It is advisable to contact the company directly using authorized communication channels to verify the validity of the offer. Residents can ensure their financial well-being by remaining vigilant and knowledgeable to combat deceptive schemes.
The SCA, responsible for regulating securities in the UAE, cautioned that an unidentified entity is pretending to be ADS Securities, a licensed entity overseen by the regulatory authority.
Fraudsters have taken advantage of ADS Securities' official license to trick investors into thinking they are a trustworthy financial institution. These scammers deceive individuals into thinking they are interacting with a reputable company by using ADS Securities' credentials improperly. This strategy enables them to avoid detection and attract innocent people to illegal investment scams. Officials are advising people to stay cautious and confirm the legitimacy of all financial transactions directly with the authorized firm. Being vigilant is essential to prevent monetary losses and avoid falling prey to deceptive schemes.
The regulator advised all investors to confirm the legitimacy of the entity they are dealing with before signing agreements or making financial transfers, and to consult the data of licensed companies listed on SCA's website.
The UAE authorities advise investors and residents to verify the authenticity of emails and messages from various sources to avoid falling victim to fraud.
Previously, the SCA advised investors not to engage with Platinum FX firms for activities under its supervision as the company lacks the required license for such practices. The regulator stated that SCA does not take any responsibility for any interactions with this company in this matter.
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