UAE Experts Warn of Deepfake Scams Defrauding Victims of Tens of Thousands in Fraudulent Investment Schemes

Dubai: Legal, cybersecurity, and psychological experts have issued a stark warning regarding the rise of fraudulent online trading and investment platforms that lure individuals with promises of quick wealth through social media advertisements. These scams are often orchestrated by organized criminal networks, capitalizing on the allure of financial freedom and high returns.

The alert comes as advertisements proliferate, promoting dubious trading platforms that claim to provide access to global financial markets. These platforms often present opportunities in various sectors, including gold, oil, commodities, currencies, stocks, cryptocurrencies, and indices. Experts emphasize that these schemes frequently attract victims with enticing promises, only to ultimately defraud them of their investments.

Victims Report Substantial Losses

Numerous victims have reported significant financial losses after being persuaded to invest through online platforms and messaging applications. One victim, known as Abu Suhail, recounted being contacted via WhatsApp by an individual claiming to work with investment brokers. He was subsequently added to a Telegram group where he was encouraged to engage in investment activities, with promised returns ranging from $90 to $185 per task. After transferring funds to various accounts provided by the group, he realized he had been scammed, with total losses amounting to AED85,711.

Another victim, Abu Muhammad, reported transferring AED200,000 after being assured of regular profits, only to discover later that the investment was fraudulent. A third individual disclosed a loss of AED70,000, having been persuaded through Instagram and WhatsApp to invest in online trading schemes.

Eight Psychological Factors

Psychological consultant Dr. Medhat Al-Sabahi highlighted that victims are often manipulated through sophisticated psychological tactics rather than mere ignorance. He identified eight key factors that fraudsters exploit:

• Desire to improve financial circumstances
• Fear of missing out on opportunities
• Excessive self-confidence
• Reliance on perceived credibility
• Social proof and peer influence
• Gradual commitment and escalation
• Economic and psychological pressures

Dr. Al-Sabahi noted that fraudsters frequently employ professional-looking websites, fake certificates, and fabricated success stories to establish trust. They often encourage victims to start with small investments, providing apparent initial profits to entice them into larger commitments.

Use of Deepfakes and Sophisticated Technology

Cybersecurity expert Abdul Noor Sami indicated that criminals are increasingly leveraging advanced technologies and extensive advertising campaigns to target potential victims. He pointed out that fraudsters often:

• Produce professional promotional videos
• Utilize deepfake technology to impersonate trusted public figures
• Develop visually appealing websites and applications
• Deploy chatbots that interact with victims 24/7
• Operate through organized teams with specialized roles

Sami explained that many platforms create the illusion of legitimate trading activity through fabricated data and interfaces that do not connect to actual assets or investments. He added that shutting down these operations is challenging due to their operation across multiple jurisdictions and the use of digital wallets and complex fund transfers.

Legal Consequences

Lawyer Salem Obaid Al-Naqbi stated that individuals or entities promoting unlicensed trading platforms could face civil and criminal liability if it is proven they knowingly attracted victims. Potential consequences may include:

• Criminal prosecution as accomplices to cyber fraud
• Liability for compensating victims
• Penalties for misleading advertising
• Sanctions under cybercrime, consumer protection, and advertising laws

Al-Naqbi noted that victims may seek compensation for costs incurred in pursuing legal action and for psychological and emotional harm. Lawyer Salem Saeed Al-Haiqi emphasized that liability may extend to anyone promoting unlicensed investment platforms without verifying their legal status.

Cybercrime Law Penalties

Article 48 of Federal Decree-Law No. 34 of 2021 on Combating Rumours and Cybercrimes outlines penalties for promoting goods or services through misleading online advertising, as well as for encouraging dealings in unlicensed virtual or digital currencies. The law stipulates penalties of imprisonment and fines ranging from AED20,000 to AED500,000, or either penalty.

Abu Dhabi Judicial Department Warning

The Abu Dhabi Judicial Department has also cautioned against joining fake investment groups on social media that entice users with initial rewards before encouraging larger transactions. The department noted that scammers often lure victims with promises of extraordinary profits, gradually persuading them to invest increasing amounts before disappearing with the funds.

Common reasons for falling victim to these scams include:

• Desire to become wealthy quickly
• Belief in unrealistic return promises
• Failure to conduct proper research before investing

Authorities urge investors to verify licenses, conduct thorough due diligence, and avoid any investment opportunity that guarantees high returns with minimal risk. Experts stress that legitimate investment relies on knowledge, research, and risk management, rather than promises of guaranteed profits or rapid wealth.

Source: www.emirates247.com

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Published on 2026-08-16 08:50:00 • By the Editorial Desk