DFSA takes action on ‘e-fraud’ site

The Dubai Financial Services Authority (DFSA) has thwarted a second attempt by criminals to align a fake investment scheme with Dubai International Financial Centre (DIFC).

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By  Administrator Published  April 12, 2007

The Dubai Financial Services Authority (DFSA) has thwarted a second attempt by criminals to align a fake investment scheme with Dubai International Financial Centre (DIFC).

The DFSA, the regulatory authority for the DIFC, announced this week it had obtained injunctions in the DIFC court against the operators of the Euro-America Index.

The internet-based investment scheme claimed on its web site to have three global trading centres, one each in Dubai, the US and Switzerland - a claim which on investigation turned out to be false, the DFSA said.

The DFSA was alerted to the site by a prospective investor in Malaysia, Niall Coburn, director of enforcement at the DFSA, told IT Weekly.

The regulator went to the DIFC court and - after working with US and Swiss authorities - was successful in removing DIFC from the web site, Coburn said.

Coburn added that the DFSA had also asked the site's host to close it down, but it did not do so. The site may be closed down in the future, he said.

The investigation occurred less than two months after the DFSA busted an internet fraud ring pretending to operate out of DIFC; investors were tricked out of almost US$1million.

"Once again the DFSA acted swiftly to protect the reputation of the DIFC and prevent potential loss to investors," David Knott, chief executive of the DFSA, said.

"We are starting to see an increased trend in these types of e-frauds in the Middle East. Where they occur in our jurisdiction, the DFSA will take appropriate action," he added.

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