The Dubai Financial Services Authority has issued a warning pertaining to a real estate scam promoted by Star-Dubai, a company that displays what it claims is a Certificate of Incorporation from the regulator on its website.
The DFSA advises that it does not issue such certificates, and the yields offered of between 120-224 per cent profit per month by Star-Dubai are unrealistic.
“The DFSA strongly advises prospective investors in Dubai real estate not to respond to Star-Dubai Ltd or any other person or company representing the firm.” it said on Thursday.
Also on Thursday, it issued an alert warning of “a fraudulent scam involving the use of false documents and the impersonation of DFSA board members”.
The fraud involves perpetrators claiming to be from a non-existent DIFC-based company, called either “UAE Investment Finance Group” or “UAE Investment Finance Services”, and represented by a non-existent DIFC-based legal firm called “Syed Furrukh Rizvi (SFR) Advocates and Legal Consultants”, the DFSA said.
As of August this year, the DFSA had issued nine alerts warning firms registered in the Dubai International Financial Centre about scams which use the internet to impersonate genuine investment companies and individuals.
Last year the DFSA issued two warnings on scams in response to fraudulent emails purported to be from the former Dubai International Financial Centre governor Abdullah Saleh, and from Hussain Al Qemzi, a member of the DIFC’s board.
The UAE Central Bank is also believed to be monitoring the increasing abuse of advance fee scams. The authorities believe the presence of wealthy people in the Middle East looking for investment outlets makes the UAE especially vulnerable.
jeverington@thenational.ae
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