Cryptocurrency (Bitcoin) Scams in Dubai: How to find? What are the Known scams?

Cryptocurrency (Bitcoin) Scams in Dubai: How to find? What are the Known scams?

What is a bitcoin scam in Dubai?

Cryptocurrency is a sort of digital currency that exists solely on the internet. Unless you utilize a service that allows you to exchange cryptocurrencies for a physical token, there is no actual coin or bill.

Without the use of an intermediary such as a bank, you normally exchange cryptocurrencies with someone online, using your phone or computer. The cryptocurrencies Bitcoin and Ether are well-known.

The recent flurry of interest in cryptocurrencies has piqued the interest of a wide range of investors, but it has also piqued the interest of scammers. The most common goal of crypto scams is to obtain sensitive information such as security codes or to dupe an unsuspecting user into sending cryptocurrency to a compromised digital wallet.

Attempts to gain access to a target’s digital wallet or login credentials include: Scammers are looking for information that will allow them to gain access to a digital wallet or other confidential information such as security codes. Additionally, It can even include access to real hardware in some circumstances.
Moreover, Directly sending cryptocurrency to a scammer as a result of impersonation, false investment or business possibilities, or other malicious tactics.

What are the known bitcoin scams in Dubai?

Bitcoin, Ethereum, Tether, Polkadot, and Dogecoin are all digital currencies. Whether or not you invest in one of these cryptocurrencies, you will undoubtedly be familiar with at least one of these digital payment methods by 2021.
Most bitcoin transactions are not reversible, and they are not regulated by the government.

When your hard-earned cash falls into the hands of a con artist, the prospects of getting it back are minimal. The best defense against a worst-case scenario is to avoid bitcoin scams from the outset.

Following are the known scams:

1. Scams involving investments or business opportunities

Scams involving investment or business opportunities usually start with an unsolicited invitation to become a bitcoin investor, which leads you to a fake website where you may learn more about the possibility. Once you’ve registered, you’ll be urged to start investing and making money right away. It’s possible that the website contains forged celebrity endorsements or testimonials.

 

2. Cryptocurrency imposter or impersonation scams

When a cyber criminal pretends as a reputable source in order to persuade victims to perform a bitcoin transaction, this is known as an impostor or impersonation scam. This might be a government agency, a credit card company, a bank, or even a service provider, and they’ll usually contact you via email and request that you pay using cryptocurrencies. It’s even possible that it’s a phony celebrity.

3. Cryptocurrency extortion or blackmail

Blackmail or extortion is one of the oldest scamming techniques in the book. It occurs when you receive an email claiming that someone has compromising material about you — such as images, videos, or personal data — and they demand payment or they will reveal it.

4. Scams involving cryptocurrency giveaways

Giveaway scams are a hybrid of impersonation and social media cryptocurrency scams, in which victims are enticed to donate money to someone who promises to multiply the amount.

5. Fake Apps that are not real

Different cryptocurrencies have different apps as digital payment methods. Cybercriminals are capable of duplicating them. Over ten thousand users have downloaded phony cryptocurrency apps. Users may begin sending payments directly to crooks after downloading these bogus apps.

6. Scams involving cryptocurrencies on social media

Scams involving bitcoin on social media are exactly what they sound like: scams involving cryptocurrency on social media. This is frequently accomplished through a phony social media post or commercial asking for payment in bitcoin.

7. Scams involving cryptocurrencies in the workplace

Employment bitcoin scams sometimes start with an unsolicited job offer that leads victims to a bogus website to learn more about the opportunity, similar to investment or business opportunity scams.

8. Cryptocurrency loader or load-up scams

Some cryptocurrency scams are as straightforward as asking for your account logins, believe it or not. This is how a bitcoin loader or load-up scam works. Scammers may contact victims and beg to borrow their accounts because they require greater credit limits. The scammer promises to give them a cut of the profits from their investments in exchange.

9. Phishing cryptocurrency scams

Phishing schemes, another old-school cyberattack, usually take place via email and contain a request for money. These mails are frequently sent by hackers impersonating credible sources, making phishing attacks comparable to impersonation scams.

10. Scams involving cryptocurrencies on social media

Scams involving cryptocurrency that take place on social media. This is frequently accomplished through a phony social media post or commercial asking for payment in bitcoin. You might even see other users commenting or posting feedback on the post. These could, in fact, be bots.

How to avoid Bitcoin Scam?

  1. Never grant remote access to your machine to support employees (or anybody else for that matter).
  2. Secondly, Outbound calls requesting confidential personal information should never be accepted. When making outgoing calls, be mindful that scammers can impersonate real phone numbers.
  3. Never transmit cryptocurrency to a supposed support agent’s external address.
  4. Under the pretense of address verification, never send cryptocurrency to giveaways.
  5. Any phishing or scam attempts should be reported.
  6. All giveaways and offers found on social media should be taken with a grain of salt.
  7. Only send cryptocurrency to people you know and trust. Look for reviews or stories about the receiver that are publicly verified.
  8. Report the email to your email provider as spam.
  9. Make a police report with your local authorities.
  10. Lastly, Under no circumstances should you give out your passwords or security codes to a third party.

Where to report the bitcoin scam in Dubai?

Report any cryptocurrency-related fraud or other suspicious behavior to Dubai Electronic Security Centre. You can email at mail@dubaipolice.gov.ae or their direct line is 901. For further details check here.

How to recover the lost cryptocurrency?

If you have a backup, you can restore the wallet using the private keys of the public addresses where the bitcoins are stored, or you can recreate a new wallet using the restore from seed or private key option.

DubaiCoin

According to the Dubai administration, the widely spread claim that Dubai has developed its own cryptocurrency, branded DubaiCoin, is a hoax.

Arabianchain Technology, based in the United Arab Emirates (UAE), introduced DubaiCoin. Moreover, It claims to be the Arabic world’s first public blockchain-based cryptocurrency.

However, the Government of Dubai Media Office tweeted on 28 may 2021 “DubaiCoin cryptocurrency was never approved by any official authority. The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors.”

Cryptocurrency Scam Fine in Dubai

Top legal experts have warned that cybercriminals who operate cryptocurrency frauds in the United Arab Emirates could face detention for up to five years and/or a fine of between Dh250,000 and Dh1 million. Several legislative amendments, including the new legislation, were proposed by the President of the United Arab Emirates, His Highness Sheikh Khalifa bin Zayed Al Nahyan, in November as part of a broader package of reforms.

Penalties for promoting unrecognized cryptocurrencies

“Under Article 48 of the Online Security Law, any person who promotes, advertises or encourages dealing in cryptocurrency, that is not officially recognized in the UAE, or does so without being licensed, is subject to a penalty of detention and, or a fine between Dh20,000 and Dh500,000,” explained Josh Kemp, partner at ADG Legal.

Aside from the fact that engaging in any fraudulent scheme is a criminal offense under the Penal Code, engaging in a cryptocurrency scam online would subject individuals to punishment under the new law

The law previously cautioned against cryptocurrency promotion operations but did not penalize those who engaged in them, resulting in an increase in cybercriminals pursuing cryptocurrency investors with false information.

Article 40 carries a penalty of detention of not less than one year and/or a fine of between Dh 250,000 to Dh 1 million, while Article 41 carries a penalty of detention for up to five years and/or a fine of between Dh 250,000 and Dh 1 million,” said Kostubh Devnani, dispute resolution lawyer at ADG Legal.

In the United Arab Emirates, new rules have been implemented to control cryptocurrency.

  • The Securities and Commodities Authority (SCA) issued Decision No. 23 of 2020 concerning Crypto Assets Activities Rule, which became effective on November 1, 2020, and is the most significant regulation lately implemented in the UAE.
  • It governs virtually all transactions involving Crypto Assets, including the offering, issuance, promotion, listing, and operation of exchanges for the trading of Crypto Assets (including cryptocurrencies) and related activities. Crypto Assets are defined as digital assets that can be traded on an exchange.
  • All of these operations will necessitate the authorization of individuals by the SCA and will, it appears, be subject to the same restrictions that apply to traditional financial instruments.
  • The Regulation also reiterates and expands on current restrictions on money laundering and terrorism financing, for example, by requiring that all licensed persons treat customers who transact in Crypto Assets as ‘high risk’ for the purposes of client due diligence.
  • It was announced today that the Dubai World Trade Centre Authority and Binance have struck a preliminary agreement to build an industrial hub for global virtual assets in the emirate with the goal of boosting their adoption in the Gulf Cooperation Council region by 2022.

Overview of the most recent updates to Online Security Law

  • When it comes into effect on January 2, 2022, the new Online Security Law will be one of the first comprehensive legislative frameworks in the region to address the hazards connected with the use of online technology, including the unlawful usage of cryptocurrencies.
  • The new law, which replaces the previous 2012 statute ‘Concerning Anti-Cybercrimes,’ intends to improve the protection of the general public, private businesses, and the government against cybercrime by increasing the effectiveness of existing laws.
  • “Broadly, the new law provides for a wider range of hacking crimes, as well as content-related crimes directed at the use of technology for illicit purposes such as terrorism, disseminating false information or fake news, and other uses that are contrary to public morals,” explained Josh Kemp, partner at ADG Legal.

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