HOW DO SIM CARD SCAMS WORK?
Sim swap frauds are a form of identity theft.
They involve criminals conning mobile phone operators into issuing them with replacement Sim cards, often by claiming their phone has been lost or stolen
They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.
The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.
A UAE-based bank must pay close to Dh5 million to a customer swindled out of his life savings in a Sim card swap scam, after losing an appeal against the landmark ruling.
The financial institution was found to be responsible for the victim's Dh4.5 million losses after he fell foul to financial fraudsters by Dubai Commercial Court last October.
The court concluded that the victim's personal details had been leaked by an employee at the bank, the name of which was not disclosed to The National.
The verdict has now been upheld by Dubai's Court of Appeal.
The man, who had once worked in the UAE but was living overseas at the time of the crime, discovered his bank account had been emptied during a visit to the country in 2017.
It was found that, using the client’s phone number, tricksters were able to obtain a replacement Sim card, and change the Pin code connected to his bank services before logging him out and stealing the funds in his account.
Ghassan El Daye, partner and head of litigation Middle East with the UK-based law firm Charles Russell Speechlys (CRS) who represent the victim, said the bank failed to put in place sufficient security measures to protect their customer.
The legal team advised the man to pursue a claim in the civil court to win his money back, arguing failings on the part of the bank had allowed the crime to take place.
The bank had argued the account holder was responsible for the loss, since he possessed the original Sim card and Pin number, and had failed to object to the transactions within 30 days from reviewing his account statement.
Appeal court judges appointed banking and technical experts to assess the responsibility of the bank in terms of negligence, lack of supervision and control that led to the account being breached.
“The experts’ report held the bank responsible for our client’s financial loss due to a lack of technical protection of his confidential data and that of safe electronic procedures and investigations at the bank,” said Mr El Daye.
“It also indicated a clear technical failure at the bank by issuing and delivering a credit card to a client who is actually outside the country, in addition to the lack of strong procedures to prevent the breach from happening.”
The report stated that an authentication system at the bank to control which employees were allowed access to clients’ accounts and confidential data, did not exist.
It also said the absence of an alarm system that monitors suspicious transactions from accounts, especially inactive ones, had contributed to the significant loss of funds.
The court was told the money was stolen through a number of cash withdrawals, 15 online transfers, six transfers from his account to another bank account in the UAE, and purchases via the victim’s credit card.
“The report’s findings came in favour of our legal team’s argument regarding our client’s confidential data including his official documents and contact numbers, being illegally divulged to others by an employee of the bank," said Mr El Daye.
“This case set a precedence in the country, as it holds a financial institution liable for a fraud case involving a replacement Sim card, which is now an important element of banking operations in the country and the world.”
The legal expert said the judgment highlighted the need for banks to tighten up security measures, monitor the use of Pin codes rigorously and carry out more extensive background checks on employees.
The bank was ordered to pay the man Dh4,677,596, including the full amount of his losses plus Dh100,000 in compensation with 9 per cent interest accrued from the date the case was lodged.
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The specs
Engine: 6.2-litre supercharged V8
Power: 712hp at 6,100rpm
Torque: 881Nm at 4,800rpm
Transmission: 8-speed auto
Fuel consumption: 19.6 l/100km
Price: Dh380,000
On sale: now
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
The biog
Favourite hobby: I love to sing but I don’t get to sing as much nowadays sadly.
Favourite book: Anything by Sidney Sheldon.
Favourite movie: The Exorcist 2. It is a big thing in our family to sit around together and watch horror movies, I love watching them.
Favourite holiday destination: The favourite place I have been to is Florence, it is a beautiful city. My dream though has always been to visit Cyprus, I really want to go there.
THE POPE'S ITINERARY
Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport
Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial
Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport
Brief scores:
Everton 2
Walcott 21', Sigurdsson 51'
Tottenham 6
Son 27', 61', Alli 35', Kane 42', 74', Eriksen 48'
Man of the Match: Son Heung-min (Tottenham Hotspur)
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
Squad
Ali Kasheif, Salim Rashid, Khalifa Al Hammadi, Khalfan Mubarak, Ali Mabkhout, Omar Abdulrahman, Mohammed Al Attas, Abdullah Ramadan, Zayed Al Ameri (Al Jazira), Mohammed Al Shamsi, Hamdan Al Kamali, Mohammed Barghash, Khalil Al Hammadi (Al Wahda), Khalid Essa, Mohammed Shaker, Ahmed Barman, Bandar Al Ahbabi (Al Ain), Al Hassan Saleh, Majid Suroor (Sharjah) Walid Abbas, Ahmed Khalil (Shabab Al Ahli), Tariq Ahmed, Jasim Yaqoub (Al Nasr), Ali Saleh, Ali Salmeen (Al Wasl), Hassan Al Muharami (Baniyas)
Read more from Aya Iskandarani
HOW DO SIM CARD SCAMS WORK?
Sim swap frauds are a form of identity theft.
They involve criminals conning mobile phone operators into issuing them with replacement Sim cards, often by claiming their phone has been lost or stolen
They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.
The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.
