Victims lose tens of thousands of dirhams through fake investment schemes using deepfakes, fraudulent cryptocurrency and stock trading offers
Dubai: Legal, cybersecurity and psychological experts have warned the public against falling for fraudulent online trading and investment platforms that promise quick wealth through social media advertisements, stressing that organised criminal networks are behind many of these schemes.
The warning comes amid the continued spread of advertisements promoting purported trading platforms that describe themselves as gateways to global financial markets and claim to offer opportunities in gold, oil, commodities, currencies, stocks, cryptocurrencies and indices.
Experts said such platforms often attract victims with promises of high returns and financial freedom before ultimately defrauding them of their money.
Victims report substantial losses
Several victims said they suffered significant financial losses after being persuaded to invest through online platforms and messaging applications.
One victim, identified as Abu Suhail, said he was contacted via WhatsApp by a woman claiming to work with investment brokers and facilitators. He was later added to a Telegram group and encouraged to participate in investment activities that promised returns ranging from $90 to $185 per task.
He said he transferred funds to several accounts provided by the group before discovering he had been scammed.
“The total amount I transferred reached AED85,711 before it became clear that I had fallen victim to fraud,” he said.
Another victim, Abu Muhammad, said he transferred AED200,000 after being promised regular profits but later discovered the investment was not legitimate.
A third victim reported losing AED70,000 after being persuaded through Instagram and WhatsApp to invest in online trading schemes.
Eight psychological factors
Psychological consultant Dr Medhat Al-Sabahi said victims are often manipulated through carefully designed psychological tactics rather than a lack of awareness.
He identified eight major factors commonly exploited by fraudsters:
- Desire to improve financial circumstances
- Fear of missing out on opportunities
- Excessive self-confidence
- Reliance on perceived credibility
- Social proof and peer influence
- Gradual commitment and escalation
- Economic and psychological pressures
Al-Sabahi said fraudsters frequently use professional websites, fake certificates, fabricated success stories and testimonials to build trust.
They often encourage victims to start with small investments and provide apparent initial profits before persuading them to invest larger amounts.
Use of deepfakes and sophisticated technology
Cybersecurity expert Abdul Noor Sami said criminals are increasingly relying on advanced technologies and extensive advertising campaigns to target potential victims.
He noted that fraudsters often:
- Produce professional promotional videos
- Use deepfake technology to imitate trusted public figures
- Develop attractive websites and applications
- Deploy chatbots that interact with victims around the clock
- Operate through organised teams with specialised roles
According to Sami, many of the platforms create the illusion of legitimate trading activity through fabricated data and interfaces that are not linked to actual assets or investments.
He added that shutting down such operations can be difficult because many operate across multiple jurisdictions and make use of digital wallets and complex fund transfers.
Legal consequences
Lawyer Salem Obaid Al-Naqbi said individuals or entities that promote unlicensed trading platforms could face both civil and criminal liability if it is proven that they knowingly participated in attracting victims.
Potential consequences may include:
- Criminal prosecution as accomplices to cyber fraud
- Liability for compensating victims
- Penalties for misleading advertising
- Sanctions under cybercrime, consumer protection and advertising laws
Al-Naqbi said victims may seek compensation for:
- Costs incurred in pursuing legal action
- Psychological and emotional harm
Lawyer Salem Saeed Al-Haiqi said liability may extend to anyone who promotes unlicensed investment platforms without adequately verifying their legal status.
Cybercrime law penalties
Article 48 of Federal Decree-Law No. 34 of 2021 on Combating Rumours and Cybercrimes provides penalties for promoting goods or services through misleading advertising online, as well as for advertising or encouraging dealings in unlicensed virtual or digital currencies.
The law stipulates penalties of imprisonment and fines ranging from AED20,000 to AED500,000, or either penalty.
Abu Dhabi Judicial Department warning
The Abu Dhabi Judicial Department has also warned against joining fake investment groups on social media that entice users with initial rewards before encouraging them to participate in larger transactions.
The department said scammers commonly lure victims through promises of extraordinary profits, then gradually persuade them to invest increasing amounts before disappearing with the funds.
According to the department, common reasons people fall victim include:
- Desire to become wealthy quickly
- Belief in promises of unrealistic returns
- Failure to conduct proper research before investing
Authorities have urged investors to verify licences, conduct thorough due diligence and avoid any investment opportunity that guarantees high returns with little or no risk.
Experts stressed that legitimate investment is based on knowledge, research and risk management, not promises of guaranteed profits or rapid wealth.
Source: Emirates 24|7