Cyber fraud is on the rise in the UAE, with residents falling victim to fraudulent transactions and finding themselves abandoned by their banks. From credit cards being maxed out without the account holder’s knowledge to unauthorized payments and charges, many customers face mounting debts and legal threats as they struggle to prove their innocence. The response from banks has been disheartening, with some shifting blame onto customers, threatening legal action, and allowing aggressive recovery tactics. Victims are left feeling helpless in a system where banks act as judge, jury, and executioner.
One such victim, Ajoy Joseph, discovered that forged photocopies of his Emirates ID were used to obtain credit cards in his name, leading to debts totaling over Dh120,000. Despite the fraud being uncovered, some banks demanded payment and legal action, leaving Joseph in a six-month legal battle. Ayesha Naseem, Sarika Thadani, Abdul Kader, and Yassin Hashem are among the other victims who have faced similar challenges, with little support from their banks and authorities.
Experts emphasize the importance of proactive measures to prevent cyber fraud, including advanced technologies like AI-driven fraud orchestration platforms and blockchain-based identity verification. However, legal accountability for banks when systems fail is equally crucial. Hossam Zakaria from HZ Legal outlined scenarios where banks may be liable for compensating customers, such as failing to implement adequate security measures or delaying notification of suspicious activity. Victims of account breaches are advised to seek legal advice to understand their rights and options for compensation.
While efforts are being made to enhance cybersecurity in the financial sector, many victims are still waiting for resolution. The tendency to shift blame onto customers rather than acknowledge shortcomings is not uncommon among banks. In some cases, banks have been held accountable for fraud incidents, with customers being compensated for their losses. Victims of cyber fraud in the UAE should be aware of their rights and seek legal recourse if necessary to hold banks accountable for their actions. It is essential for banks to prioritize customer protection and take responsibility for ensuring secure transactions and safeguarding customer data.
