If you’re thinking an investment guarantee is too good to be true, it might just be.
The UAE’s Ministry of Interior has warned people of investment fraud, asking them not to be deceived by “promises of quick, guaranteed profits”. These, the authority says, are often tactics used to steal your money.
Dubai Police has also recently issued a similar warning to residents about fraudulent investment schemes circulating on digital platforms and social media that lure victims with promises of quick, guaranteed financial returns.
Signs to spot investment fraud
The UAE’s Ministry of Interior has also given a list of signs to watch out for:
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Pressure to invest urgently or immediately
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Promises of high returns within a short timeframe
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Vagueness about the nature of the business or how profits are generated
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Requests for your personal or banking information
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Inability to verify the company’s license or physical location
Risks of fraud
Aside from the obvious risk of losing one’s money, investment fruad also brings with it several other concerns. That includes being able to recover the money lost and misuse of personal data.
Such an incident can also cause the victim significant pschological and emotional harm.
How to protect yourself from fraud
The authority has also given a list of ways that investors can protect themselves from fraud. These include:
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Verify the entity’s license before committing to any investment
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Consult a qualified specialist before making any financial decision
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Deal exclusively with officially licensed entities
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Be wary of promises offering large, guaranteed returns
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Never transfer funds to personal accounts
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Never share your personal data or OTP
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Be cautious of unknown, unverified, or counterfeit apps and websites
