How to Recover Your Money Lost in Unauthorised Credit Card Transactions in the UAE?

Unauthorised transactions on credit cards can be distressing, particularly when they occur without any negligence on the part of the cardholder.

In the UAE, hacking e-payment transaction apps or websites is a serious criminal offence, punishable by imprisonment and fines ranging from Dh200,000 to Dh2 million.

This is stipulated under Article 15 of the Federal Decree Law No. 34 of 2021, which addresses hacking and cybercrimes related to e-payment instruments.

According to the law, severe penalties are imposed on individuals or groups involved in forging, cloning, or copying credit cards, debit cards, or any e-payment instruments.

The same penalties apply to those who design or use software with the intent to facilitate such criminal activities.

Additionally, unauthorised use of these instruments, or knowingly accepting forged or illegally obtained cards, is punishable under this law.

In the UAE, financial institutions have a duty to educate their customers about financial crimes, as per Clause 6.2.2.6 of the Consumer Protection Regulation issued by the Central Bank of the UAE.

This regulation mandates that licensed financial institutions conduct sufficient consumer awareness activities to help protect consumers from financial crimes.

Moreover, banks must maintain up-to-date security systems and be prepared to adopt new cybersecurity strategies as necessary. This ensures that they can effectively combat evolving threats, as outlined in Clause 6.2.2.5 of the same regulation.

When it comes to compensating customers for financial losses, banks are generally required to do so if the loss is due to financial crimes, cyberattacks, or the misuse of assets and information.

However, banks are not liable if the loss is due to gross negligence or fraudulent behaviour on the part of the customer, as stated in Clause 6.2.2.4 of the Consumer Protection Regulations.

For customers who have been cautious and can provide evidence that the unauthorised transactions were not due to their negligence, the bank may be obligated to compensate them for the loss.

A formal complaint should be filed with the bank, which would then conduct an investigation into the matter. Additionally, the customer may need to file a police report and provide transaction details and evidence.

If the bank's resolution is unsatisfactory, the complaint can be escalated to the Central Bank of the UAE.

In summary, while banks in the UAE are responsible for safeguarding their customers against financial crimes, they may not be liable for losses that result from the customer's own negligence or fraudulent actions.

However, in cases where the customer has acted responsibly, the bank could be required to compensate for any unauthorised transactions.

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