"We are launching the web pages today, in both English and Arabic, in response to the growing number of investors being targeted by scammers who are increasingly using electronic facilities to market their illegal schemes, " DFSA head of enforcement Stephen Glynn said in a statement this morning.
"There seem to be new scams created every day, and they are becoming increasingly sophisticated," Glynn added. "Public awareness and education are the most effective means of eradicating this menace.”
The DFSA is the regulator responsible for overseeing financial and ancillary services that are offered in the Dubai International Financial Centre (DIFC), a so-called free-zone in Dubai.
The DFSA’s announcement of the new anti-scam web pages, which may be found at www.dfsa.ae/Pages/Alerts/HowToAvoidBeingScammed.aspx, comes three days after the United Arab Emirates Central Bank, located in Abu Dhabi, said it was banning banks in the country from cold calling would-be customers to market loans and investment products. It said it was implementing the ban in response to complaints from UAE citizens about the number and types of calls they had been receiving.
The two actions are the latest in a series of efforts taken by UAE regulators that have been aimed at cracking down on unscrupulous advisers and financial products sales agents. A few weeks ago, the Central Bank announced limits designed to curb excessive service fees, again in response to consumer complaints.
Other DFSA measures
The DFSA already publishes regular “alerts” on its website about the most recent scams known to be targeting individuals in the Dubai International Financial Centre (DIFC) and other investors. In today’s statement, it said that these alerts, together with the ‘How To Avoid Being Scammed’ web pages, would give investors “more information about scams and how best to avoid them”.
It advised any investors who had queries or concerns about any product offered to them to consult a financial adviser “from a reputable and licenced financial services provider, or their financial services regulator” before making any investment.
The DFSA also has an electronic portal through which members of the public are invited to file complaints. This may be found here.
