Massive Dubai Scam: 12 Million Dirhams Stolen

Devastating Commercial Scam in Dubai: Over 12 Million Dirhams of Goods Disappear

Dubai Silicon Oasis was known for its peaceful business environment until now. A shocking commercial scam has come to light where fraudsters stole goods worth more than 12 million dirhams. According to the victims, the fraudsters built trust through small cash purchases and then ordered large quantities of goods with post-dated checks before disappearing without a trace.

How did the scam work?

The fraudsters established a company called Dynamic, which operated with a valid trade license and seemed authentic documentation. Their office was located in Dubai Silicon Oasis and initially conducted small cash purchases to build credibility. For instance, in one case, they paid 300,000 dirhams in cash, convincing many suppliers of their reliability.

After gaining the trust of business partners, Dynamic ordered large quantities of goods - including laptops, towels, cashew nuts, tires, and steel coils - with post-dated checks. However, after the goods were delivered, it turned out that the checks were worthless. By the time the victims realized the scam, the office and warehouses were emptied, and the phone lines were disconnected.

The victims' stories

The case affected dozens of businesses, including local and international suppliers. A Dubai-based Pakistani businesswoman, for instance, supplied goods worth 800,000 dirhams - including pulses, almonds, rice, sugar, and cashew nuts - to the fraudsters. She mentioned even visiting their office, which appeared completely legitimate at first glance.

Another victim, who supplied 76 Lenovo laptops and routers worth 267,000 dirhams, said that the first check was processed without issues. This reinforced the belief in the company's reliability. Unfortunately, this false confidence led to significant losses for him.

The extent of the scam and its consequences

According to gathered information so far, at least 70 companies were affected by the scam, but the number of victims is likely higher. Many companies have not reported their losses or simply haven't realized they were victimized yet.

An IT company leader, who supplied laptops and network cables worth 78,000 dirhams, expressed his shock that despite conducting all possible preliminary checks, he fell victim to the scam. This case was particularly painful for him as he had started his business only six months prior.

Wide-ranging impacts

The scam affected not only the suppliers but also employees. A sales representative of a Chinese company lost her job because the company blamed her for poor due diligence. Other victims, like a Lebanese businesswoman from whom 15,000 premium-quality towels were stolen, feel that this case has undermined their trust in new clients.

Lessons and precautions

This tragic case has once again highlighted the essential need for increased caution in the world of commerce. It is crucial for suppliers to not only rely on a company's apparent credibility but also scrutinize the client's past and financial standing.

Dubai’s business community now trusts that justice will prevail and authorities will catch the fraudsters, ensuring such scams can be prevented in the future. This case serves as an important warning to everyone that caution and thorough checks are indispensable for business success.