Dubai, a city known for its glittering skyscrapers, luxury lifestyle, and dynamic business environment, has become an attractive destination for people from around the world. However, beneath this shimmering facade, there’s been a rising tide of fraudulent activity. Cases of fraud, phishing, and identity theft are on the rise, as some individuals exploit digital platforms and others’ identities to seek financial gain. From deceptive online schemes to impersonation for monetary benefits, these crimes threaten residents and hamper their day-today activities.

The legal framework

In the UAE, fraud generally refers to the act of deceitfully obtaining funds, property, or services from another person or entity. Fraudulent acts involve intentional misrepresentation, false promises, or other dishonest means intended to mislead a person or organization. Fraud is punishable under the UAE Penal Code and the UAE Cybercrimes Law, among other statutes.

Article 451 of Federal law no. 31 of 2021defines fraud as the illicit acquisition of movable property, obtaining benefits or signatures through illegal means, or illegalfabrication of documents. The methods employed must involve deceit, such as false pretenses or identities, leading the victim to surrender valuable possessions. In order to establish fraud under Article 451, following prerequisites should be fulfilled:

• Presence of a fraudulent method in obtaining possession.
• The possession holds material value.
• Intent to defraud on the part of the offender.
• The fraudulent act precedes the surrender of possession.
• The possession is relinquished in furtherance of the fraudulent act.

However, if the victim is aware of the fraud but continues to surrender possession, it does not constitute fraud.

The Cybercrimes Law (Federal law 34 of 2021) also criminalizes fraud conducted through online platforms, including identity theft, hacking, and unauthorized financial transactions.Violators may face imprisonment, hefty fines, and in some cases, deportation.Penalties are particularly severe for cases involving misuse of personal data or attempts to defraud people through digital channels.

Penal Provisions

The penalties for fraud in Dubai depends on the nature and severity of the crime. Here is a breakdown of potential consequences:

• Imprisonment: Fraud offenses can lead to prison sentences ranging from one month to several years, depending on the fraud type and its impact.
• Fines: Fines can vary significantly based on the nature of the offense, with financial fraud and cyber fraud attracting substantial penalties. Cyber fraud fines, for example, can range between AED 250,000 and AED 1,000,000.
• Asset Seizure: In cases of financial fraud or money laundering, the court may order the seizure of assets obtained through fraudulent means.
• Deportation: Foreign nationals convicted of fraud may face deportation from the UAE following the completion of their sentence.

Protect yourself!        

To safeguard yourself and your business from fraudulent schemes, consider the following preventive measures:

• Be Cautious with Financial Transactions: Avoid sharing personal or banking information with unverified entities.
• Verify Documents and Identities: Always confirm the authenticity of documents and the identities of individuals involved in transactions.
• Secure Your Digital Accounts: Implement strong passwords, two-factor authentication, and avoid clicking on suspicious links to protect against cyber fraud.
• Conduct Due Diligence: Before investing or entering into a business agreement, conduct thorough research and consult with legal professionals if needed.

If you have become a victim of fraud or accused of fraudulent activities, seeking advice from a criminal lawyer in Dubai is essential. An experienced legal consultant in Dubai can help guide you through the complexities of the legal process, ensuring that your rights are protected.