Fake investment offers are increasingly borrowing the names, logos, and online appearance of well known financial institutions, making them harder to detect. Industry experts and market analysts say these tactics rely heavily on public trust and a lack of independent verification to succeed.

“In my 17 years working across the UAE’s financial sector, I’ve learnt that the phrase ‘guaranteed returns with no risk’ is perhaps the single most reliable indicator that something is wrong,” said Muhammad Alamer, an SCA licensed financial influencer and independent market analyst.

He noted that legally operating financial markets do not offer such investments. Alamer added that as more residents turn to investing and look for reliable guidance, there are clear warning signs they should watch for, with unrealistic return promises topping the list.

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“If someone is promising you monthly returns of 10, 15 per cent, or even higher, walk away,” he said, explaining that even the best performing institutional fund managers globally do not achieve such figures on a reliable basis. Returns that appear excessively high are often not genuine.

Alamer also warned of other red flags, including pressure tactics and urgency. Phrases such as “limited spots available” or “this offer expires tonight” are designed to bypass rational thinking, he said. Other warning signs include vague investment strategies, difficulty withdrawing funds, unsolicited contact, and missing or unverifiable credentials. Legitimate investment firms, he added, do not make unsolicited WhatsApp or social media calls offering exclusive investment opportunities.

Muhammad Alamer

As fear of missing out is a common human reaction, Alamer urged residents to slow down and verify every step before handing over their money to anyone promising to invest on their behalf.

“The reason these scams continue to work is that most people do not verify,” he said, adding that individuals tend to lower their guard when they recognise the logo of a familiar bank or see what appears to be a regulatory emblem. Scammers, he said, are fully aware of this behaviour.

Fraudsters often support their claims using fake documents, UAE phone numbers, and professional looking email addresses that closely resemble official regulator communications.

Industry analysts say the rise in fake investment schemes is closely linked to the growing appetite for alternative income streams, driven by market volatility, rising living costs, and widespread access to online trading platforms.

“As more residents look beyond traditional savings to grow their money, fraudsters are exploiting this shift by offering simplified, high return investment narratives that appeal to first-time or less experienced investors,” said Ibrahim El Sheikh, an industry analyst.

Experts also point to social media as a major factor increasing exposure. Paid promotions, sponsored posts, and direct messages allow scammers to reach large audiences quickly, often without face to face interaction or proper verification. The use of familiar logos, professional looking websites, and influencer style messaging lowers suspicion, making it easier for fraudulent operators to gain trust.

UAE authorities have recently stepped up warnings as cases of unlicensed investment activity continue to surface. On December 12, the Securities and Commodities Authority warned the public against two entities, XC Market Limited and XCE Commercial Brokers LLC, stating they are not authorised to carry out regulated financial activities in the country.

Earlier, on December 3, the authority also alerted investors to an unlicensed entity using the name Gulf Higher Authority for Financial Conduct, which was found operating through the website financialgcc.com while falsely presenting itself as a financial regulator.

Similar concerns were raised in November when Dubai Police issued a warning following a rise in online investment offers promising fixed monthly returns of up to 10 per cent with no risk.

The alert, issued by the Anti Fraud Center at the General Department of Criminal Investigation, highlighted the growing use of social media pages and paid online promotions to market such schemes. Police said many of these operations rely on pyramid style structures, where money collected from new investors is used to pay earlier participants, creating the illusion of profitability before the operators disappear with the funds.

Alamer said tackling financial fraud requires action from both authorities and the public. He described the UAE’s new Advertiser Permit system as a step in the right direction, as it requires social media promoters to be licensed and to publicly disclose their permit numbers.

He also called for stronger ‘cross-platform coordination’, warning that scammers banned from one platform often move quickly to another. Better information sharing between platforms, he said, is essential to limit the spread of fraudulent investment promotions.