UAE: Fraudsters steal millions of dirhams by pretending to be Equiti Broker

Asma Ahmed - | UAE

The Securities and Commodities Authority (SCA) of the UAE has issued a warning to investors following reports of financial losses, including those incurred by Dubai personality Lojain Omran, allegedly due to an unlicensed entity posing as the reputable UAE-based brokerage firm Equiti.

The cautionary advisory, issued on March 27 by the SCA, aims to alert investors to the activities of MRL Investments, operating through the website equiity.com. This entity lacks the necessary licensing from the authority and is not affiliated with Equiti Securities Currencies Brokers LLC (ESCB LLC), which operates under the authorized brand name 'Equiti'.

The SCA underscores the distinctness between Equiity and Equiti, emphasizing that the former is not licensed by the SCA to engage in trading derivative contracts and currencies, unlike the latter. This differentiation is crucial for investors to recognize, as it pertains to the legitimacy and regulatory compliance of financial entities operating within the UAE. The warning serves to protect investors from potential scams and fraudulent activities perpetrated by unauthorized entities seeking to exploit unsuspecting individuals.

Among the victims of this alleged scam is Lojain Omran, a well-known personality in Dubai who recently shared her unfortunate experience on Snapchat. Omran disclosed a significant loss of $27,000 attributed to her dealings with Equiity. Her disclosure serves as a stark reminder of the risks associated with engaging with unlicensed financial entities and underscores the importance of conducting thorough due diligence before entering into any financial transactions.

In her Snapchat post, Omran urges caution and advises individuals to exercise prudence when dealing with financial institutions, emphasizing the need for comprehensive research and verification of the legitimacy of the entities involved. This call for vigilance echoes the sentiments expressed by regulatory bodies like the SCA, which are tasked with safeguarding the interests of investors and maintaining the integrity of the financial markets.

Ultimately, the warning issued by the SCA serves as a proactive measure to protect investors from falling victim to fraudulent schemes and unscrupulous practices. By raising awareness about the activities of unauthorized entities like Equiity, regulatory authorities aim to promote transparency, accountability, and trust within the financial sector, thereby fostering a safe and conducive environment for investment and financial transactions.

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Asma Ahmed
Asma Ahmed
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