TDRA Warns Individuals About Platforms that Promise Big Returns from Minimal Investments

In Dubai, you might have encountered a video on your social media feed or received a call from an unfamiliar number. "Grow your wealth rapidly through online trading," declares the voice on the other end.

Although the advertising and promotion for such platforms can be alluring, the Telecommunications and Digital Government Regulatory Authority (TDRA) in the UAE advises people to be wary of unlicensed platforms.

Through its official social media channels, the TDRA issued a warning regarding fraudulent advertisements that utilise media content and well-known influencers to endorse links promising trading opportunities, often exploiting people's trust.

Sharing a video featuring someone endorsing a trading platform with the pitch: "Invest just Dh300 to earn over Dh3,500 per month," the post informs individuals about how these ads may deceive users.

"Some individuals become victims of fraud, so it's essential to verify any links before registering. You can reach out to official authorities in the country to authenticate trading platforms," the advisory emphasises.

If you're uncertain about dealing with a particular trading platform, the UAE's Securities and Commodities Authority (SCA) offers a straightforward solution. They maintain a webpage listing entities you should avoid investing with, as they operate without the necessary licence, authorisation, or approval from the SCA.

Last year, the SCA launched an awareness campaign to combat unlicensed financial activities in the UAE. During this campaign, the SCA advised individuals seeking to invest to first verify that the company is licensed for the specific investment purpose. This can be confirmed through the SCA's website and other approved official channels.

Similarly, the Dubai Financial Services Authority (DFSA), the independent regulator of financial services in or from the Dubai International Financial Centre (DIFC), provides a dedicated webpage listing alerts issued to warn people of potential scams.

Authorities also caution investors about companies that may impersonate legitimate entities by using their name and logo to defraud people. To avoid falling victim to such scams, the SCA advises investors to verify the identity of the entity they are dealing with before entering into any agreements or financial transactions.

You can also verify if a trading platform is licensed in the UAE by consulting the list of companies licensed by the SCA on their website. Additionally, the list of brokerage firms licensed by the Dubai Financial Market to trade DFM and Nasdaq Dubai listed securities is available on their website.

If you find yourself a victim of online fraud, you can file a complaint through the UAE's eCrime platform or other official online platforms provided by the government.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.