Two women have been ordered to pay Dh700,000 in compensation after a man lost his savings in a fake online trading scam in a Dubai civil court.
The victim was contacted by individuals who purport to be from a licensed investment firm that trades in gold, oil and global market indices. They allegedly showed him documents that appeared to prove the company was legally registered in the UAE.
The man trusted the offer and opened an account and made several payments of money over several months. Between May and August last year, over Dh600,000 was deposited in bank accounts belonging to the two women, court records revealed.
The scam was uncovered when the victim discovered that the company was not licensed to provide the trading services it advertised. Investigators also discovered that the online platform had fake trading activity and fake losses to conceal the whereabouts of the money.
Dubai Police traced the transfers and linked the accounts to the defendants. Later, prosecutors charged the women with possessing money obtained under suspicious circumstances, and they were convicted in criminal proceedings.
One defendant said she did not know what was going on and did not know that her bank account was being used for the transactions. The court disagreed and found that the victim had been misled in a scheme to defraud.
The court directed both women to pay Dh700,000, legal interest and court costs.
