Drivers in the United Arab Emirates (UAE) are strongly advised to exercise caution when purchasing vehicle insurance online. The Ministry of Interior (MoI) has issued a warning regarding a new scam involving counterfeit insurance companies on social media.
The Ministry reports that fraudsters create fake accounts, posing as official insurance companies and offices. They attract unsuspecting customers by advertising policies at unrealistically low prices.
This warning comes amid a rise in UAE residents using online platforms to compare and purchase car insurance, which creates opportunities for criminals targeting those seeking the best deals.
Scammers actively promote tempting offers, claiming to provide valid insurance in exchange for an upfront payment. Victims who make payments often discover that the policies are fake or do not exist at all.
Authorities have emphasized that cybercriminals are increasingly using digital channels and social media to deceive residents needing insurance services. Drivers are advised to always verify whether insurance companies or brokers hold an official license before making any payment.
Residents should purchase policies exclusively through approved digital platforms and from licensed providers operating in the UAE. Licensed insurers operate under strict regulatory control and follow established procedures designed to protect consumer rights and guarantee policy authenticity.
Any deviation from standard prices or instant issuance of a policy without verification capability should be considered a potential red flag. The Ministry also cautions against responding to advertisements that seem too good to be true, as extremely low prices are often used by scammers to lure victims. Drivers are urged to remain vigilant when interacting with accounts offering attractive insurance services on social media.
The authorities in the United Arab Emirates (UAE) strongly urge residents to exercise caution when making purchases, as counterfeit, fake, and spoiled products pose a serious threat to consumer health and safety. Therefore, citizens are advised to report any suspicious goods or misleading advertisements.
Buyers are advised to purchase goods exclusively from verified stores and on authenticated online platforms. It is important to check product details, country of origin, and expiration dates, and to keep all receipts and warranty cards after each purchase. Furthermore, the authorities warn against transactions with unlicensed sellers, especially on social media and online marketplaces.
The UAE has intensified its fight against commercial fraud through Federal Decree-Law No. 42 of 2023 on Combating Commercial Fraud. This law establishes strict penalties for anyone involved in the production, sale, or distribution of substandard and counterfeit goods.
According to Article 4 of this law, it is prohibited to import, produce, offer, sell, store, transport, trade, promote, or possess counterfeit, fake, or spoiled goods. Attempting to commit any of these actions is also considered a violation. The law defines several actions as commercial fraud, including importing fake or spoiled products or materials for fraudulent purposes. The circulation of counterfeit goods is also criminalized if one knows their true nature, misleads consumers regarding the type, quantity, origin, or expiry date of the product, or advertises or sells products using false or deceptive information.
Moreover, storing counterfeit or fake goods with the intent to alter, modify, or replace them is a violation of the law. The authorities emphasized that commercial fraud causes financial damage to consumers and can endanger public health and safety, especially when dealing with food, medicines, cosmetics, or other regulated items.
Willful participation in commercial fraud, such as the import, production, storage, transportation, promotion, sale, or trading of counterfeit, fake, or spoiled goods, can lead to severe penalties. Article 17 states that offenders may be sentenced to imprisonment for up to two years, a fine ranging from 5,000 to 1 million dirhams, or both penalties. These measures underscore the UAE's commitment to protecting consumers and maintaining market trust.
Residents are advised to report suspicious goods or misleading advertisements to the relevant authorities to help combat commercial fraud and protect society. For self-protection, consumers should only buy goods from licensed retailers and on verified websites, carefully check packaging, details, country of origin, and expiration dates, and keep all documents, including receipts and warranties. Purchases from unlicensed sellers on social media or commercial accounts must be avoided.
