DFSA warns about advance fee scam

DFSA Warns about an Advance Fee Scam Impersonating the DIFC Authority and DFSA

03 Oct 2016

The Dubai Financial Services Authority (DFSA) alerts the financial services community and the public about an advanced fee scam in which scammers impersonate the DFSA, the Dubai International Financial Centre Authority (DIFC), a legitimate Authorised Firm in the DIFC and a legitimate bank in the United Arab Emirates (UAE).

The scammers contact consumers (the Victims) offering personal or business loans subject to the payment of an advanced fee. In doing so, the scammers fraudulently:

impersonate the DFSA by falsely referring to themselves as the “Dubai Financial Service Corporation LLC”, and stating that they are located in “DFSA Corporate House”. They also state that their email address is Dubaifinancialserviceloans@outlook.com and that their Skype ID is “Dubaifinancialserviceloans. These contact particulars are not associated with the DFSA;

prepare and send to the Victims a Loan Application Form and a Loan Agreement in which the Dubai Financial Service Corporation LLC is falsely referred to as the lender. Both documents falsely misuse the DFSA logo. The Loan Agreement also falsely states that:

the Victim must obtain an Insurance Covering Bond Certificate from a legitimate DFSA Authorised Firm. The scammers also provide the Victims with a fake DFSA Certificate of Incorporation and a fake DIFC Commercial Licence alleged to be from a legitimate DFSA Authorised Firm; and

the Victim must receive the loan from the Dubai Financial Service Corporation LLC through a legitimate bank in the UAE;

claim that, in order to apply for the loan, the Victim has to:

complete the Loan Application Form, and sign the Loan Agreement;

pay registration/processing fee, the advanced fee, of at least USD 6,150 to Dubai Financial Service Corporation LLC; and

pay for the production of several legal documents from different authorities in the UAE. The advanced fees for these legal documents are payable by the Victim to the bank from which the lender transfers funds to the Dubai Financial Service Corporation LLC; and

claim to appoint Credit and Loans Authorised Representatives internationally by entering into an “Agent Contract” with these representatives. These representatives then facilitate or arrange loans to the Victims.

Copies of the fraudulent “Loan Application Form”; “Loan Agreement”; “DIFC Commercial License”; and “DFSA Certificate of Incorporation” can be found here.

The DFSA informs you that:

there is no such company as the “Dubai Financial Service Corporation LLC”, and the address and other contact details given for this company are also fake;

the DFSA does not provide, facilitate or arrange loans to any person or entity;

the “Loan Application Form”; “Loan Agreement”; “DIFC Commercial License”; and “DFSA Certificate of Incorporation” used by the scammers are false documents;

the DFSA does not appoint representatives or agents in different regions to facilitate or arrange loans;

the scammers have fraudulently used, without authority and for malicious purposes, the names of:

the DFSA;

the DIFC;

a legitimate DFSA Authorised Firm; and

a legitimate bank in the UAE.

The DFSA strongly advises that individuals do not respond to any communication regarding the scam, and under no circumstances should they send any money to any party involved in the scam.

The DFSA has a page on its website dedicated to alerts which it has issued about scams. All alerts issued by the DFSA may be accessed by going to: ALERTS.

The DFSA has also issued warnings and guidance about the common types of scams perpetrated on consumers. For more information on these scams, please go to: HOW TO AVOID BEING SCAMMED.

The DFSA encourages consumers to refer to the list of regulated Firms and Authorised Individuals licensed by the DFSA that is available on the DFSA’s PUBLIC REGISTER.

If you have any concerns about the authenticity of any correspondence or documents that purport to be issued by the Dubai International Financial Centre (DIFC), DFSA or a DFSA regulated Firm, you should direct your concerns to the DIFC on Tel:+971 4 362 2222 and to the DFSA via the DFSA Complaints function on: COMPLAINTS.