The United Arab Emirates (UAE) Public Prosecution has announced punishments for collecting money without a license, including investment fraud, cryptocurrency scams, etc.
Taking to Twitter, UAE Public Prosecution outlined the Article No. 41 of the Federal Decree-Law No. 34 of 2021 on Combatting Rumors and Cybercrimes.
#law #legal_culture #PublicProsecution #SafeSociety #UAE #ppuae pic.twitter.com/jVk4stvhJB
— النيابة العامة (@UAE_PP) April 5, 2023
Those involved in the promotion of fake competition, cryptocurrency, or fake companies to deceive others into making investments may be fined between AED 250,000 – 1 million, up to five years imprisonment, or both.
The court will also order the scammer to return the collected funds. It is an important reminder during a time when financial scams are growing, and many people are losing their life savings to these scammers.
Crypto-Romance Scam in Dubai
Earlier this year, a Dubai resident lost more than AED 660,000 after falling victim to a crypto-romance scam. An Indian-origin IT Director revealed that in late 2022, a woman named Coco texted him on WhatsApp, asking him if he was a hotel manager in Dubai.
Responding immediately, he told her that he was not a hotel manager. This brief conversation soon took a romantic turn when Coco informed the 54-year-old man that she wanted to visit Dubai. To which, the man replied, “Our first meeting will bring us closer together.” The Indian man also exchanged photos with her.
He further added that he was facing issues with her wife and Coco “came as a breath of fresh air.” Later, Coco told him about her financial advisor friend, Linda, who was helping her make money via crypto trading. She asked him to invest as well.
He was skeptical at first but agreed because he believed he had found “his soul mate and an easy way to make money with her help.” However, in November 2022, Linda scammed him of AED 661,100 ($180,000).
