UAE: Customer tricked by SIM card swap fraud to receive Dh9.5 million from the bank

The Dubai Court of Cassation ordered a UAE-based bank to pay Dh9.5 million to a customer scammed by a SIM card swap fraud. In February this year, the verdict invalidated an initial ruling by the Dubai Commercial Court of First Instance, which found a local telecommunications provider liable for the fraud scheme. The victim of the fraud reportedly handed his brother a power of attorney in April 2015 to handle all bank transactions on his behalf. Later on, the customer's brother was notified in October 2018 that Dh9.5 million had been transferred from the account in 32 days between August and September 2018. In the same month, the customer found that his mobile phone service had been suspended. Furthermore, none of the transactions were disclosed to the customer or his representative. Investigation showed that the scammers made a replacement SIM card request to the telecommunication company of the victim's mobile number, which was registered with the bank. The final verdict found the bank equally guilty as the telecommunication company after the appeal for the initial ruling. The Court of Cassation stated in its ruling that the transfers would not have occurred if the bank did not leak the client's personal information. The final ruling also stated that the bank was liable for the customer's financial loss as a result of its failure to implement a strong authentication mechanism. BKM/ Expat Media
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