Organized Financial Fraud

Fraud incidents have been rapidly increasing worldwide, with more complex schemes and sophisticated methods driven largely by advancements in technology. The UAE Financial Intelligence Unit (UAEFIU), in line with the 2023 FATF, INTERPOL, and Egmont Group report, has highlighted how criminals exploit modern financial systems to execute scams, often in collaboration with organized crime groups (OCGs). Fraud is not only a financial threat but is also linked to other serious crimes, such as money laundering, human trafficking, and forced labor.

In the UAE, fraud remains a major risk, contributing to money laundering activities, with an estimated financial loss of AED 1.2 billion between 2021 and 2023. The number of fraud-related Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs) has surged, reflecting the growing scale of fraudulent activities. Common fraud types include phishing, vishing, business email compromise (BEC), and investment fraud, with enablers such as money mules, social engineering, and fraudulent digital platforms.

The UAEFIU also developed 60 fraud risk indicators to help detect suspicious activities, alongside recommendations for improving customer due diligence, enhancing national and international coordination, and addressing risks posed by new technologies. To effectively tackle fraud, it is essential that financial institutions, law enforcement, and authorities collaborate, share intelligence, and stay vigilant against evolving fraud techniques.

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