DFSA warns of a corporate cloning scam

The Dubai Financial Services Authority (DFSA) has alerted the public about an advance fee scam that has cloned the name of a legitimate DFSA Authorised Firm.

Cloning is a practice whereby scammers misuse the names of legitimate firms and individuals without authority.

In this particular case, the scammers are using the name “Najd Investments Limited” to misrepresent that they are a legitimate firm operating from the Dubai International Financial Centre (DIFC).

Najd Investments Limited is similar to the former name of a legitimate DFSA Authorised Firm.

The scammers use the following modus operandi:

• Target firms and members of the public (Consumers) pretending to be a financial representative or employee of “Najd Investments Limited”;

• Falsely inform Consumers that “Najd Investments Limited” is licensed by the DFSA to operate in the DIFC;

• Advise Consumers that they offer a “debt project financing facility” or loans at guaranteed fixed rates to both companies and individuals;

• Provide Consumers with the name of a former director of the legitimate DFSA Authorised Firm; and

• Ask Consumers to secure the loan with a “Performance Bond” from a UAE insurance company, claiming that this is a legal requirement in the UAE, and provide a list of insurance companies. When the Consumer contacts an insurance company, the insurance company asks for an “advance closing fee” of 53,000 euros, or an “insurance application and underwriting fee” of $56,000.

The DFSA said that “Najd Investments Limited” is not registered or authorised by the DFSA or DIFC.

The scam referred to above is a fraud. The DFSA strongly advised that people do not respond to representations of this type, and under no circumstances should send any money to the scammers.

When dealing with firms or individuals claiming to be in contact or associated in any way with the DFSA or the DIFC, please ensure to check the DFSA’s and the DIFC’s Public Registers to confirm the authenticity of the firm, the DFSA said.

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