UAE Investment Scam Alert: Experts Warn Against ‘Guaranteed Returns’

Financial experts in the UAE have issued a strong warning to residents against investment schemes that promise unusually high or “guaranteed” returns, noting a sharp rise in sophisticated financial scams across the country.

Fraudsters are increasingly misusing the names, logos, and digital identities of well-known banks and financial institutions to make fake investment offers appear legitimate. According to industry analysts, these scams rely heavily on public trust and a lack of independent verification by investors.

‘Guaranteed returns’ a major red flag

Muhammad Alamer, an SCA-licensed financial influencer and independent market analyst, said that any investment offering risk-free or guaranteed profits should immediately raise concern.

Drawing on nearly two decades of experience in the UAE’s financial sector, Alamer explained that legally operating markets do not offer investments with zero risk. He warned residents to be particularly cautious of schemes claiming monthly returns of 10 to 15 per cent or more, noting that even top global fund managers cannot consistently achieve such results.

Pressure tactics and fake urgency

Experts say many scams use psychological pressure to push people into making quick decisions. Common phrases such as “limited slots,” “last chance today,” or “exclusive offer” are designed to create urgency and bypass rational thinking.

Other warning signs include unclear or vague investment strategies, difficulty withdrawing funds, unsolicited calls or messages, and missing or unverifiable credentials. Alamer stressed that genuine investment firms do not approach individuals through unsolicited WhatsApp messages or social media calls.

Fake documents and cloned identities

Scammers often support their claims with forged documents, UAE phone numbers, and professional-looking email addresses that closely resemble official regulatory communications. Many victims lower their guard when they recognise familiar bank logos or regulatory symbols, a behaviour fraudsters deliberately exploit.

Why investment scams are rising

Market analysts link the surge in fake investment schemes to growing interest in alternative income sources, driven by rising living costs, market volatility, and easy access to online trading platforms.

“As more residents explore investment options beyond traditional savings, fraudsters are using simplified high-return narratives to attract first-time and inexperienced investors,” said industry analyst Ibrahim El Sheikh.

Social media has also played a major role in increasing exposure. Paid advertisements, sponsored posts, and direct messages allow scammers to reach large audiences quickly. The use of influencer-style promotions, polished websites, and recognisable branding often lowers suspicion.

Authorities step up warnings

UAE authorities have recently intensified alerts against unlicensed investment activity. On December 12, the Securities and Commodities Authority (SCA) warned the public about two entities — XC Market Limited and XCE Commercial Brokers LLC — stating they are not authorised to conduct regulated financial activities in the UAE.

Earlier this month, the SCA also cautioned investors against an unlicensed entity operating under the name Gulf Higher Authority for Financial Conduct, which falsely presented itself as a financial regulator through its website.

Dubai Police have also flagged a rise in online investment schemes promising fixed monthly returns of up to 10 per cent with no risk. Authorities noted that many such operations follow pyramid-style models, where funds from new investors are used to pay earlier participants before the organisers disappear.

Call for vigilance and verification

Experts emphasise that combating financial fraud requires both regulatory action and public awareness. Alamer welcomed the UAE’s new Advertiser Permit system, which requires social media promoters to be licensed and display permit numbers publicly.

He also highlighted the need for stronger coordination between digital platforms, warning that scammers often move quickly from one platform to another after being banned.

Financial professionals urge residents to slow down, verify credentials through official regulatory channels, and avoid any investment opportunity that sounds too good to be true.