New loan scammers, fake WhatsApp job offers dupe residents out of up to Dh500,000

UAE online scams

 New Loan Scammers and Fake WhatsApp Job Offers Dupe Residents Out of Up to Dh500,000

Online scammers have become increasingly active, with new schemes emerging to defraud unsuspecting individuals. One such scheme, known as the "loan scam," involves fraudulent lending companies tricking victims into depositing a processing fee to secure a loan, only to demand additional payments without ever releasing the funds. This type of scam recently ensnared Cristy, a 35-year-old Filipina expatriate working as a shift supervisor at a restaurant in Dubai.

Cristy recounted her experience to Khaleej Times: “I saw a sponsored ad on Facebook offering quick, collateral-free loans to OFWs (overseas Filipino workers). I grabbed the opportunity because there was an emergency back home, and I needed money.” She contacted the supposed lending company and was instructed to deposit P20,000 (about Dh1,250) as a processing fee, with no other requirements needed. Believing it was a straightforward process, Cristy borrowed money from a friend to secure a P200,000 loan (Dh12,500).

However, after making the initial deposit, Cristy was informed that her loan was canceled due to a "low credit" rating. The company demanded an additional P50,000 (Dh3,125) to rectify the issue and release the loan, including the additional deposit. Ultimately, Cristy ended up paying P70,000 (Dh4,375) and received nothing in return. The so-called loan officer blocked her calls and ceased responding to her messages. “All our conversations were done via Telegram, and I could no longer reach the loan officer,” she lamented. "I was enticed by the promise of quick loan release and a collateral-free arrangement. It was too late when I realized it was a scam," she added.

Growing Aggressiveness of Scammers

Attorney Barney Almazar, director of the corporate-commercial department at Gulf Law, who deals with cases similar to Cristy's, explained to Khaleej Times that scammers have become more aggressive and resourceful in targeting victims. "Our cybersecurity and financial fraud team has been assisting about 20 victims monthly for the past five months," he said. Almazar noted a troubling rise in online scams preying on individuals' trust and financial security. These scams range from fraudulent loan processing to enticing part-time job offers via messaging apps like WhatsApp. One client even reported losing more than half a million dirhams to these deceitful schemes.

 Fake Job Offers and Other Scams

Another prevalent scam involves fake job offers circulated through WhatsApp and similar messaging platforms. These messages promise high incomes for minimal work, such as completing simple tasks or participating in surveys. Victims are often required to provide personal information or pay a fee to get started. Once the fee is paid or the information provided, the scammers disappear, leading to potential identity theft or financial loss.

Almazar recounted a recent case where an Abu Dhabi resident received a WhatsApp message from an alleged market researcher. The victim was asked to do simple tasks and subscribe to a YouTube channel for an initial payment of Dh300. Over two days, the victim ended up transferring Dh534,800 to 16 UAE bank accounts. Unfortunately, the money could not be recovered as the bank accounts had been depleted.

Last month, Khaleej Times reported that scammers were targeting UAE residents by creating WhatsApp groups, enticing them with promises of earning up to Dh800 daily by liking, following, and commenting on various YouTube posts. A reporter from Khaleej Times was added to one of these groups, revealing how aggressively scammers were ramping up their recruitment efforts. In another incident, a Dubai hotelier lost her entire life savings of about Dh66,000 to a part-time job scam.

 Legal Perspective and Precautions

Almazar emphasized the significant risks these scams pose to personal security and privacy. "From a legal standpoint, these scams represent significant financial fraud and pose severe risks to personal security and privacy. Everyone should exercise caution and skepticism towards unsolicited offers that appear too good to be true," he warned.

He also offered several legal and practical steps to protect against online financial predators:

-  Verify Sources : Always verify the legitimacy of the financial institution or company offering loans or jobs by contacting them directly through official channels.
-  Avoid Upfront Fees : Be wary of any loan offers requiring an upfront fee before approval. Legitimate lenders typically deduct processing fees from the loan amount.
-  Report Suspicious Activity : Immediately report suspicious messages or offers to the Police Cybercrime Department or the Telecommunications Regulatory Authority (TRA). Prompt reporting can help track and shut down fraudulent operations.
- Avoid Clicking Links : Be cautious about clicking on links in unsolicited messages. Navigate directly to official websites if unsure.
-   Use Two-Factor Authentication : Enable two-factor authentication on all financial accounts and services for added security.
- Monitor Financial Statements : Regularly review bank and credit card statements for unauthorized transactions and report suspicious activity promptly.
- Update Security Software : Ensure devices have the latest security updates and antivirus software to detect and prevent malware infections.
- Learn and Inform : Stay informed about common scam tactics and educate family and friends to prevent fraud.

By following these precautions and staying vigilant, individuals can better protect themselves from falling victim to these increasingly sophisticated scams.