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Apr 1 2013 onwards

1 April 2013 — DFSA Consumer Alerts Having an Impact



Dubai, UAE, 1 April 2013: The Dubai Financial Services Authority (DFSA) was recently informed of a fraudulent alert that attempts to undermine the credibility of the DFSA's Consumer Alert system.

The DFSA issues Consumer Alerts whenever it becomes aware of a scam that misuses the identity of the Dubai International Financial Centre (DIFC), the DFSA or any of their staff. The Consumer Alerts warn the public of the scam and advise consumers not to deal with any of the persons or companies associated with the scam. The DFSA applies best global standards to reduce the phenomenon of any fraud affecting the Center or its clients.

Consumer Alerts have saved a number of people from being scammed. The DFSA's Consumer Alerts are easily accessible through a simple internet search and consumers can easily protect themselves by simply conducting an internet search and informing themselves of the most recent scams. The DFSA also publishes any documents that are used to defraud consumers on its web site. The DFSA has had a lot of success in diminishing the effectiveness of scams by posting the alerts and documents on its web site.

Recently the DFSA became aware of unusual and fraudulent information being posted on the internet about the DFSA's own Consumer Alert system. It appears the fraudulent information attempts to imitate the DFSA's Consumer Alerts with the intention of undermining the credibility of the DFSA Consumer Alert's system.

The DFSA's Head of Enforcement, Stephen Glynn said that: "I was surprised to see a fraudulent alert that mimics the DFSA's Consumer Alerts. I am constantly amazed by the ingenuity of scammers to invent fraudulent practices that protect their own interests".

"It is not precisely clear why the fraudulent alert has been issued. One theory is that it is an attempt by scammers to undermine the credibility of the DFSA's Consumer Alert system, thus improving the prospects of their own illegal activities. Alternatively, it could be part of a broader scam for which we don't yet have full particulars."

Mr Glynn said: "Consumers need to be vigilant and careful when investing in products or services they do not understand, that offer returns well above the market rate or are too good to be true."

"Many scams are now reported on the internet or blog sites. Consumers can protect themselves by simply conducting an internet search. If in doubt, consumers should always first call their financial services regulator before parting with their hard earned cash."

The DFSA has issued a Consumer Alert in relation to the fraudulent alert which can be viewed here.