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Dubai: Residents warned against scammers posing as top officials, faking documents

The growing role of AI in these fraudulent activities was a key point of concern at the Dubai Financial Services Authority's media roundtable

A top official from the Dubai Financial Services Authority (DFSA) revealed that both he and the authority itself have fallen victim to the sophisticated impersonation schemes by scammers trying to defraud people.

“We get impersonated a lot,” Patrick Meaney, head of enforcements at the DFSA told Khaleej Times. "Scammers often claim they can help people get a windfall but first, they ask for a fee. They might send documents that look like they're from the DFSA, signed by Mr. Patrick Meaney (me), but they're fake."

Meaney shared that he personally receives e-mails from individuals who are misled into thinking they need to make payments to the DFSA. “I reply immediately to let them know they are being scammed,” he said. “They thank me later, but education is crucial to combat these risks. People need to be aware of the danger and not trust individuals they meet online or via social media.”

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The growing role of Articial Intelligence (AI) in these fraudulent activities was a key point of concern during a media roundtable that outlined the authority’s enforcement outreach initiatives.

Speaking on the sidelines of the event, Patrick shared his concerns about the increasing use of advanced technologies like AI to create fake documents and trick people into paying fraudulent fees. "AI creates a very credible document," he said. "The formatting looks good, the logos are good, the language is good, it looks like a genuine document. AI has enabled that, unfortunately."

Regulatory actions

The DFSA has been actively tackling financial fraud, with one of its key enforcement actions in 2024 involving Vedas International Marketing Management. The company had engaged in "deceptive promotions," claiming to be authorised by the DFSA while promoting "highly speculative and risky financial products". According to Meaney, Vedas used these tactics to persuade individuals to trade on products that promised quick profits but also posed significant risks.

"This is a highly volatile product, marketed to retail investors with the promise of making a lot of money in a short time,” said Meaney. “While it’s true that you can make money, you can also lose it very quickly.”

As a result of its deceptive practices, Vedas was fined $100,000 (Dh367,000) earlier this month for deceptive cold calling. Meaney stressed that due diligence is essential before engaging in any financial service, particularly when dealing with unsolicited calls. “If someone is cold calling you, you cannot trust what they are telling you,” he cautioned. “You must ensure that the people you’re dealing with are who they say they are and that they have the proper credentials.”

'Name and shame' policy

To help prevent falling victim to scams, Meaney advised investors to use the DFSA’s website to verify whether a company is truly authorised by the authority. “Check the name of the company on our website. We maintain a list of authorised firms (on DFSA website)."

While regulatory actions like these make up a small portion of the DFSA’s overall work, Ian Johnston, chief executive of the DFSA, emphasised their importance in maintaining the integrity of the financial market. "It is in the interest of the industry to have a regulator with strong enforcement powers," Johnston explained. “Very often, if there is an outbreak of something wrong in the market, the knee jerk response of many regulators is to write more rules and impose them on the industry. By doing that, you are sometimes punishing the people who are not doing anything wrong. Sometimes it is better to find who is doing the wrong thing and take action specifically in relation to the misconduct.”

Johnston also pointed to the DFSA’s “name and shame” policy, which publicly identifies companies that engage in fraudulent or deceptive activities. "This serves as a deterrent and sets a strong example for others,” he said, underscoring the authority’s commitment to holding wrongdoers accountable.

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