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Combating COVID-19: Dubai warns of $10 million loan scheme fraud

A recent scam has emerged in Dubai which involves a $10 million loan for young entrepreneurs and the public for protection against the COVID-19.

As per the Dubai Financial Services Authority (DFSA), the scammers have created a fake LinkedIn account, which consists of a photograph of an existing DFSA employee, claiming to be an account of the regulator.

It stated that a forged LinkedIn profile posted details of an imaginary $10 million loan with a zero percent markup supposedly provided by the DFSA to promote the Indian economy, assisting start-up entrepreneurs and helping the people of India due to the novel COVID-19.

Earlier this month, the regulator had alerted consumers about a rise in scams and other fraudulent activity since the beginning of the Coronavirus epidemic. In their post, the scammers pointed out that an application form had to be filled to apply for the loan.

The DFSA said in a statement, “The DFSA confirms that the LinkedIn profile is fake, and the loan being offered through the LinkedIn profile is fictitious and a scam. We do not offer loans to consumers of any kind. We strongly advise that you do not respond to the perpetrators of the scam, and under no circumstances should you send or give any money to any party connected to the scam.”

To cope up with the increasing number of COVID-19 related scams, a number of bodies including the UAE Banks Federation, the Central Bank of the UAE, Abu Dhabi Police, and Dubai Police have initiated the UAE’s first national fraud awareness campaign to educate and protect consumers from financial cybercrime and fraud, especially since the increased use of digital banking services during the Coronavirus epidemic.