Rising Credit Card Fraud in the UAE: A Growing Crisis for Residents Amidst Bank Negligence

In the UAE, residents are increasingly falling victim to credit card fraud, facing debt that can amount to as much as Dh120,000. This growing issue, where customers are often blamed instead of finding solutions, is putting financial strain on many individuals. From unauthorized credit card charges to emptied bank accounts, residents are left battling recovery agents and legal threats, often without adequate support from their banks.

One alarming case involves an individual who discovered fraudulent credit cards issued in his name, each maxed out to around Dh30,000. The fraudsters had manipulated bank systems to reroute statements to fake email addresses and control OTPs (One-Time Passwords) meant for the legitimate account holder. Despite the clear signs of fraud, the banks initially held the victim responsible, demanding payment for the debt, which exceeded Dh120,000. While some banks eventually waived the charges after a legal battle, others continue to insist on repayment.

This case is not isolated. Across the UAE, residents are reporting similar incidents of fraud. With cyberattacks increasing, including phishing, DDoS, and ransomware, many individuals are finding their accounts drained or credit cards charged without their knowledge. The issue is compounded by banks often failing to notify customers about suspicious activity in a timely manner, leaving account holders in a vulnerable position.

One resident discovered her credit card was used abroad, despite never leaving the UAE. Another had her card charged even after it had been blocked. In yet another case, a customer found that multiple unauthorized transactions had occurred without any OTP verification. In all of these instances, the banks shifted the blame to the customers, threatening legal action and sending recovery agents to harass the victims.

For many residents, the process of recovering stolen funds and restoring their financial standing is long and arduous. Some victims, even after extensive legal battles, are still facing significant debt and rising fees. The lack of immediate support or acknowledgment from banks leaves victims feeling trapped in a system where they are held accountable for security failures beyond their control.

The issue goes beyond individual cases. Insider involvement and bank security lapses are suspected to play a role in these fraud incidents. Banks are being urged to adopt advanced technology to protect against cyber breaches. Implementing systems like AI-driven fraud detection, blockchain-based identity verification, and SIM-swap detection tools are critical measures needed to safeguard customers from future fraud.

Despite these technological solutions, accountability remains a key issue. Banks have a duty of care to protect their customers, and when they fail to do so, they should be held liable. Recent court rulings in the UAE have demonstrated that banks can be ordered to compensate victims of fraud, particularly in cases where security measures were inadequate or not enforced.

While efforts to enhance cybersecurity in the financial sector are underway, including real-time cyber-attack simulations and webinars focused on data protection, many victims continue to face unresolved cases. The tendency of some banks to shift responsibility onto customers rather than address internal shortcomings only worsens the situation. Until stronger measures are put in place and banks are held accountable for their role in these breaches, residents may continue to find themselves burdened by debts they did not incur.

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