Online scammers are becoming more active, with new forms of scamming emerging, such as the ‘loan scam’. This scam involves a dubious lending company asking victims to deposit money as a processing fee to secure a loan, only to demand additional payments to release the funds. One victim, Cristy, fell prey to this scam after seeing a sponsored ad on Facebook offering collateral-free loans. She ended up paying a total of P70,000 (Dh4,375) and received nothing in return, as the loan officer blocked her calls and messages.
Attorney Barney Almazar, who handles cases like Cristy’s, highlighted the increase in online scams targeting victims’ trust and financial security. Scammers are posing as legitimate lending agents or market researchers to trick victims into paying processing fees or providing personal information. One victim lost Dh534,800 in two days to a fake market researcher through WhatsApp tasks, and was unable to recover the money despite reporting the incident.
Almazar warned about scammers promising high incomes through simple tasks on WhatsApp, such as liking and commenting on YouTube posts, targeting UAE residents. These scams have become more sophisticated, with scammers using legitimate company logos to appear trustworthy. In one case, a Dubai hotelier lost her entire life savings of about Dh66,000 to a part-time job scam. Almazar emphasized the importance of verifying sources, avoiding upfront fees, reporting suspicious activity, and enabling two-factor authentication to protect against online financial predators.
To protect oneself from online financial scams, Almazar advised verifying the legitimacy of loan or job offers, avoiding upfront fees, reporting suspicious activities promptly, avoiding clicking on unsolicited links, enabling two-factor authentication, monitoring financial statements, updating security software, and educating oneself and others about common scam tactics. With scammers becoming more aggressive and sophisticated, it is crucial for individuals to exercise caution and follow these legal and practical steps to safeguard their financial security and privacy.
