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18 March 2025

UAE Urges Vigilance Against Rising Financial Fraud During Holidays

Consumer awareness is highlighted as the best defense as digital payments surge and fraud attempts increase.

The rapidly increasing use of digital payments raises alarm as the Emirates Association of Accountants and Auditors calls for heightened consumer awareness to combat the rising tide of financial fraud. Recent studies reveal alarming statistics: around 49% of consumers in the UAE have fallen victim to some form of fraud, and 92% express concerns for their friends and family potentially being scammed.

Mr. Jamal Saleh, the General Manager of the Emirates Association of Accountants, emphasizes the urgency for consumers to adopt necessary precautions, especially during peak digital transactions seen around holidays and festive seasons. His call to action coincides with the national campaign launched by the association back in 2020, which aimed at raising awareness about financial crimes. “Awareness is our strongest line of defense against financial fraud,” he declared.

The campaign, now entering its fourth year, has been supported by various partners, including the Central Bank of the UAE, the Abu Dhabi and Dubai cyber police, and the Telecommunications Regulatory Authority. It has focused on educating individuals on various methods of fraud including phishing, email scams, and social engineering tactics.

The collaboration has led to significant strides: 90% of financial sector employees reportedly feel confident they can identify fraud attempts, up from previous years. But the statistics also reveal troubling facts; over half of UAE residents (56%) reportedly face at least one attempted fraud each month, highlighting the continuous threat consumers face.

During busy shopping periods, such as Eid Al Fitr, the anticipation of high transaction volumes elevates safety campaigns. With the rise of digital payments—reportedly increasing by 53% to reach $43 billion (AED 157.8 billion) by 2023—the environment remains ripe for fraudulent activities.

Simultaneously, Visa’s recent study reinforced these concerns, demonstrating how the public’s trust ebbs and flows with their online transaction experiences. Close to 99% of respondents acknowledge taking proactive measures to safeguard their online dealings, but 62% admitted to encountering attempts by others soliciting money under pretense.

Confidence about digital payment security is mixed. While 77% of respondents feel confident using these payment methods, and 81% anticipate increased usage over the next year, many also hold misconceptions about responsibility for fraud. Most believe accountability lies with external parties, not themselves. Only 30% feel primarily responsible when they fall victim to scams.

Charles Lobo, Regional Risk Vice President at Visa, underscored the need for enhancing consumer awareness. “Education is key,” he stated, stressing cooperation across industries to achieve this aim. “With fraud methods becoming increasingly sophisticated, it’s clear we’re engaged in a continual battle for security.”

Cutting-edge technologies like artificial intelligence and biometric verification systems are now being incorporated to heighten security measures. Mr. Saleh reaffirmed the UAE’s commitment to maintaining its status as a leading financial hub, with digital infrastructure capable of addressing the growing risks.

The legal frameworks are stringent. Regulations hold individuals accountable for sharing or promoting prohibited content—be it on social media or other platforms—with fines reaching millions of dirhams for violators. The laws dictate equal responsibility between content creators and those sharing content, exposing individuals to similar penalties as original publishers.

Users are warned to adhere closely to national values, which prioritize respect, tolerance, and the preservation of community harmony. Offending national symbols or public figures can lead to severe penalties, including administrative fines and potential imprisonment.

Consequently, legal analyses urge all social media users within the UAE to exercise strong caution. Fatima Al-Zadjali, from Tamimi & Co., outlined the potential legal consequences for spreading unverified content. She noted, “Even truthful statements can sometimes breach community standards and lead to severe repercussions.”

With the rise of social media integration, the explosion of online interactions means compliance with privacy laws is more important than ever. Users risk imprisonment and fines for breaches, emphasizing the need for responsible content sharing.

“The safest digital payment methods revolve around familiarity and security, ensuring transactions reflect user prudence,” noted one analyst. Consumers showcase varying preferences, with 67% favoring card transactions and 59% opting for mobile payments.

Maintaining security through verification processes, such as receiving SMS confirmations for monetary transactions, appears to be increasingly valued. Roughly 86% of users feel more secure executing transactions via confirmation codes; where visual security cues are present, 56% feel more reassured.

With adoption levels rising, those using digital payment systems are refining their security approaches. Yet only 34% of individuals turn to peer-to-peer (P2P) services which, though popular, need improved user experience and increased outreach. “We are still discovering new fraud detection technologies, and fluctuations will continue as digital transactions proliferate,” noted Lobo.

With the dynamics of the digital transaction environment constantly shifting, collaborative efforts and consumer education remain pivotal for safety. It’s evident, as fraud evolves, so too must the strategies employed to defend financial integrity, and win the trust of consumers venturing increasingly more boldly online.