Dubai Police Warns Against Fraudulent Investment Schemes Promising High Fixed Monthly Returns

Dubai Police, represented by the Anti-Fraud Center in the General Department of Criminal Investigation, has warned the public against engaging with companies or platforms that promote misleading investment offers promising fixed monthly returns of up to 10% with no risks. Authorities stressed that such claims are clear signs of fraudulent practices aimed at luring victims and seizing their funds.

Certain companies advertise through social media and paid online promotions, misusing the names and logos of reputable financial institutions to create a false sense of credibility while operating without valid licenses from regulatory authorities. Police noted that these scammers often rely on pyramid schemes or false promises, collecting money from new investors to pay temporary profits to earlier victims before disappearing without a trace.

Dubai Police emphasized that expecting monthly returns of 10% or more is unrealistic in a regulated investment environment, as high returns always carry corresponding risks. Such claims should be recognized as warning signs of potential financial fraud. 

The public is urged to exercise caution, resist the temptation of quick profits, and verify company licenses with the appropriate authorities before making any investments or transferring funds. Suspicious activities or advertisements should be reported immediately.

In July, Dubai Police arrested four members of a cybercrime group suspected of using social media platforms to promote fake trading and investment schemes.

BrokersView Reminds You

Do not readily trust the claims of investment platforms, especially those asserting associations with well-known financial institutions. Investors must conduct independent verification. Fraudulent operators frequently misuse the names and logos of legitimate firms to mislead and deceive.

Any broker claiming to be licensed in Dubai or the UAE should be checked against the registers of the Dubai Financial Services Authority (DFSA) or the Securities and Commodities Authority (SCA).