24 C
Tuesday, February 27, 2024

Abu Dhabi businessman loses $20,000 in crypto scam

An Abu Dhabi businessman, Rashid Alam (name changed upon request), fell victim to a cryptocurrency scam, losing $20,000 (Dh73,461) after mistaking the scammer for a vendor with the same name.

In March, Rashid received a WhatsApp message from an individual claiming to be Nancy, inquiring if he needed products. He believed it was the same Nancy he had dealt with in the past for industrial chemicals, falling for the deception.

Their conversations evolved, and Nancy portrayed herself as a successful textile business owner. They grew closer, and she introduced Rashid to cryptocurrency trading, where he initially invested $1,000 and saw his capital grow to $3,000 in a few days.

Encouraged by the WhatsApp group’s claims of profits, Rashid invested $20,000. However, when he tried to withdraw, he was told about a 30% tax requirement, which others in the group assured him was standard procedure.

Rashid’s story serves as a cautionary tale about falling victim to cryptocurrency scams.

In April, Khaleej Times reported a similar incident where an Arab businesswoman in Sharjah lost more than a million dirhams in a comparable scam. Sara, who operates a confectionery business, was lured into investing in a cryptocurrency trading program by a cybercriminal who befriended her through WhatsApp.

Subsequent investigations have unveiled that the cryptocurrency trading platforms endorsed to both Sara and Rashid were fraudulent. These platforms were cleverly designed to mimic actual trading activity, deceiving investors into believing they were reaping substantial profits.

In January, Khaleej Times highlighted the case of a former IT director in Dubai who lost Dh650,000 in a cryptocurrency romance scam involving a scammer named Coco. Last year, a similar scam resulted in Ajman resident Sajjad Khan losing $47,000, as reported by Khaleej Times.

Perpetrators of this fraudulent activity, often referred to as the “pig butchering scam,” employ various channels such as social media, dating apps, WhatsApp, and text messages to initiate contact. They frequently begin by feigning a mistake and persist in communication even after being corrected. Gradually, they establish trust and convince victims to invest in cryptocurrency trading by offering supposed insider information. They guide victims to download an app or visit a website, all of which the scammers clandestinely control.

UAE law enforcement authorities have consistently emphasized the importance of vigilance on social media. Cybercrime is projected to cost a staggering $10.5 trillion annually worldwide, as reported by leading cybersecurity researcher Cybersecurity Ventures. Billionaire Warren Buffet has identified it as humanity’s top concern, with cyberattacks posing a more significant threat than nuclear weapons.

Next Article

Related Articles

Vital Vaccinations for Children Traveling during Umrah or Eid Holidays, UAE Doctors Emphasize Empowering Safety

Vital Vaccination for Umrah or Eid Travel , UAE Doctors Empowering Safety Around 20 percent of parents in the UAE inadvertently overlook their children's routine...

Dubai Parkin IPO Set to Ignite Market Surge on March 5th, Revolutionizing Prosperity

Dubai's Parkin IPO Set to Soar on March 5, Marking UAE's Pioneering Stock Market Debut in 2024 Dubai is gearing up for a groundbreaking event...

Sharjah-Muscat Bus Service Starting February 27th, Empowering Connectivity Launch of UAE

Sharjah-Muscat Bus Service on February 27, Launch of UAE Mwasalat, the renowned public transport company, has announced the launch of an eagerly anticipated new bus...

floating hospital of UAE begins treating Gazans, including 20-year-old with gunshot wounds

Floating Hospital Extends Lifesaving Treatment to Gazans, Rescuing 20-Year-Old with Gunshot Wounds In a significant humanitarian endeavor, the UAE Floating Hospital, stationed at the Port...

Dubai Banker’s Bold Transition to Volunteer at Abu Dhabi BAPS Hindu Mandir

Dubai Banker's Bold Journey from Corporate Success to Impactful Volunteerism at Abu Dhabi BAPS Hindu Mandir Vishal Patel, a Dubai-based investment banker, embarked on a...

Latest Articles