The Dubai Financial Services Authority (DFSA) alerts the public about an advance fee scam that has cloned the name of a legitimate DFSA Authorised Firm. Cloning is a practice whereby scammers misuse the names of legitimate firms and individuals without authority.
In this particular case, the scammers are using the name “NAJD Investments Limited” to misrepresent that they are a legitimate firm operating from the Dubai International Financial Centre (DIFC).
NAJD Investments Limited is similar to the former name of a legitimate DFSA Authorised Firm.
The scammers use the following modus operandi. They:• Target firms and members of the public (Consumers) pretending to be a financial representative or employee of “NAJD Investments Limited”;
• Falsely inform Consumers that “NAJD Investments Limited” is licensed by the DFSA to operate in the DIFC;
• Advise Consumers that they offer a “debt project financing facility” or loans at guaranteed fixed rates to both companies and individuals;
• Provide Consumers with the name of a former director of the legitimate DFSA Authorised Firm; and
• Ask Consumers to secure the loan with a “Performance Bond” from a UAE insurance company, claiming that this is a legal requirement in the UAE, and provide a list of insurance companies. When the Consumer contacts an insurance company, the insurance company asks for an “advance closing fee” of EUR53,000, or an “insurance application and underwriting fee” of USD56,000.
The DFSA informs you that “NAJD Investments Limited” is not registered or authorised by the DFSA or DIFC.
The scam referred to above is a fraud. The DFSA strongly advises that you do not respond to representations of this type, and under no circumstances should you send any money to the scammers.
When dealing with Firms or Individuals claiming to be in contact or associated in any way with the DFSA or the DIFC, please ensure that you check the DFSA’s and the DIFC’s Public Registers to confirm the authenticity of the Firm.
These Public Registers can be found at:
DFSA's PUBLIC REGISTER
DIFC's PUBLIC REGISTER
The DFSA has a page on its website dedicated to Alerts in relation to scams. All Alerts issued by the DFSA may be accessed by going to: ALERTS
The DFSA has also issued warnings and guidance about the common types of scams perpetrated on consumers.For more information on these scams, please go to: HOW TO AVOID BEING SCAMMED
If you have any concerns about the authenticity of any firms claiming to be authorised by the DFSA or the DIFC, you should direct your concerns to DIFC Authority on Tel: +971 4 362 2222 and to the DFSA via the DFSA Complaints function on: COMPLAINTS
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