Historically, rallies in cryptocurrency prices have often resulted in a rise in scams as market activity intensifies. However, the main driver behind this trend is the fear of missing out, which has led some victims to lose tens of thousands of dollars.
It is, therefore, imperative for investors to stay alert and exercise caution during periods of heightened excitement, analysts say.
Rising prices always attract new, inexperienced investors who look to capitalise on the momentum. The driving force is the fear of missing out, says Stanford Cardoz, anti-money laundering director at virtual assets trading platform BitOasis.
“Because of this, fraudsters exploit this environment and target individuals who lack sufficient knowledge about virtual assets."
MB, a Dubai-based crypto investor who prefers to stay anonymous, remembers being scammed in 2021. “A lot of new projects had come out and you could participate in a non-fungible tokens project through minting,” he says.
NFT minting is the process of creating non-fungible, or unique, tokens on a blockchain through smart contracts. “I saw one of these mints on Twitter [now called X], which looked legitimate. However, maybe these accounts paid to get verified on Twitter and bought fake followers. I decided to mint an NFT but ended up clicking a phishing link instead, which analysed all assets in my wallet and stole them. I lost almost $60,000."
Bitcoin surged to a record high above $108,000 on December 17 after president-elect Donald Trump suggested plans to create a US Bitcoin strategic reserve.
The value of cryptocurrencies stolen in 2024 has hit about $2.2 billion, with more than 60 per cent of that coming from North Korea-affiliated attacks, a study from blockchain data platform Chainalysis found last week.
That figure is a more than 21 per cent leap from last year and marks a fourth consecutive year of breaching the billion-dollar mark, the New York blockchain company said in a preview of its 2025 Crypto Crime Report.
From June 2011 to March 2024, almost $19 billion has been reported stolen globally, comprising more than $6 billion in security system breaches, slightly less than $5 billion in decentralised finance hacks, and almost $8 billion in fraud, according to a report by Crystal Intelligence, a blockchain analytics, compliance and risk-monitoring company.
The investor MB fell victim to another crypto scam at the beginning of this year. He wanted to participate in a crypto project called Ethena, which helps generate yields on money. But the scammer had created a website that looked identical to the real portal, except with the smart contracts changed.
“I failed to look at the website URL accurately. The scammer may have web developers who helped build the UI similar to the legitimate website. I lost $5,000 in the process,” he says.
“Now, I exercise more caution and use Pocket Universe, a browser extension that protects users from Web3 scams. When I visit a crypto-related Twitter page, I make sure the followers are legitimate. There are many scam Twitter pages out there.”
Referring to another sophisticated scam, he cites how people approach you to collaborate on projects. You get on a Zoom call after verifying them and they eventually send a link to update your Zoom or Discord account.
This turns out to be a scam link and by clicking it, you potentially give them access to scan your computer for information. Some people make the mistake of saving their crypto seed phrases on their laptop. The scanner delivers information to the fraudster, who is able to steal your wallet holdings as a result, MB explains.
“In another instance of attempted fraud in 2022, someone reached out to me on Discord wanting to write about me and requested access to my Discord community,” he recalls. "I was a novice back then and granted access.
“The person was able to become an administrator of my Discord community, which had about 6,000 people in it. He put a scam link in the channel promoting a new project. Unfortunately, a few members in my community ended up minting this project, which was a scam and they all lost money.”
Similarly, Fazlur Rehman, a 69-year-old Indian who ran a business in the UAE for six years, lost $90,000 in a crypto scam. "I'm scared to invest in crypto again after losing 90 per cent of my life savings," he says.
In 2023, a stranger approached him with a promising investment opportunity in a decentralised crypto exchange. He was added to a WhatsApp group, which allegedly comprised other investors on the platform who shared their "investment success stories" and "trading wins". Starting with small amounts, Mr Rehman gradually increased his investment.
When he later grew suspicious, he tried to withdraw all his money from the trading account, but the platform blocked him and asked to pay an additional $10,000 to reactivate his account. All his attempts to contact the exchange have been futile. When he tried to file a police complaint in India, it was unsuccessful and the officer questioned his decision to trade in cryptos.
Navin Gupta, chief executive of Crystal Intelligence, says it is a cat-and-mouse game trying to prevent digital crime on the technology side. Every day, scammers come up with new ideas and they are highly sophisticated individuals and organised groups, he says.
Mr Cardoz from BitOasis says scams, especially in Web3 and the crypto ecosystem, are agnostic of jurisdiction.
However, what probably differentiates this region from the rest of the world is fleshed out, granular regulatory frameworks which look at consumer protection. In jurisdictions that are not regulated, there's no recourse for customers who fall for these scams.
“The UAE is one of the very few jurisdictions that have introduced comprehensive regulatory frameworks specifically for virtual assets and the governance around it,” Mr Cardoz says. "Because of the guardrails, there’s an enhanced consumer protection framework around it."
“Our regulator, the Virtual Assets Regulatory Authority, makes sure that virtual asset service providers are responsible for communicating risks, especially for vulnerable clients like retail customers."
Most law enforcement departments in each emirate have their own virtual asset crime division. The Ministry of Interior also has a similar division, he adds.
Public-private partnerships are also crucial in the crypto world, such as the bond between BitOasis and Crystal, and the partnership the two companies have signed individually with Dubai Police. This helps pass on information to law enforcement quickly.
However, despite law enforcement and crypto companies placing safeguards and requirements to minimise damage, investors must stay alert as the industry is still difficult to regulate.
Smarter scams
Similarly to how fraud in the fiat world has developed, crypto fraudsters have evolved on the blockchain, according to the BitOasis executive.
“They now impersonate applications that are very similar to the real thing, especially in the DeFi world,” Mr Cardoz explains. "They combine social engineering and website takeover. Some of them have used deep fake technology to take over accounts.”
"The most common forms of crypto scams are impersonation, investment scams and romance scams, which could be like pig butchering, where fraudsters take you into confidence over months and eventually take your money and run. The lure of quick profits often clouds judgment, and this typically makes investors forget critical due diligence."
Mr Gupta warns people to make sure that crypto is not being used to launder money or move funds in and out of the banking system, he says.
Customers in the crypto field should exercise the same due diligence that they would apply in the fiat world, too.
If you're new to this world, do your research and sign up only to licensed and regulated VASPs, Mr Cardoz recommends. Once you sign up, secure your account by using multifactor authentication, don't share your private keys and avoid unsolicited offers.
If a crypto customer is scammed, they must first inform their existing digital asset provider. If they are not working with one, they can go directly to Dubai Police, who have smart police stations where they can file a complaint, Mr Gupta explains.
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
Day 3, Dubai Test: At a glance
Moment of the day Lahiru Gamage, the Sri Lanka pace bowler, has had to play a lot of cricket to earn a shot at the top level. The 29-year-old debutant first played a first-class game 11 years ago. His first Test wicket was one to savour, bowling Pakistan opener Shan Masood through the gate. It set the rot in motion for Pakistan’s batting.
Stat of the day – 73 Haris Sohail took 73 balls to hit a boundary. Which is a peculiar quirk, given the aggressive intent he showed from the off. Pakistan’s batsmen were implored to attack Rangana Herath after their implosion against his left-arm spin in Abu Dhabi. Haris did his best to oblige, smacking the second ball he faced for a huge straight six.
The verdict One year ago, when Pakistan played their first day-night Test at this ground, they held a 222-run lead over West Indies on first innings. The away side still pushed their hosts relatively close on the final night. With the opposite almost exactly the case this time around, Pakistan still have to hope they can salvage a win from somewhere.
COMPANY%20PROFILE%20
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Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Company%20profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Ogram%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Karim%20Kouatly%20and%20Shafiq%20Khartabil%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20On-demand%20staffing%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2050%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3EMore%20than%20%244%20million%3Cbr%3E%3Cstrong%3EFunding%20round%3A%3C%2Fstrong%3E%20Series%20A%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EGlobal%20Ventures%2C%20Aditum%20and%20Oraseya%20Capital%3Cbr%3E%3C%2Fp%3E%0A
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
RESULTS
Bantamweight
Victor Nunes (BRA) beat Siyovush Gulmamadov (TJK)
(Split decision)
Featherweight
Hussein Salim (IRQ) beat Shakhriyor Juraev (UZB)
(Round 1 submission, armbar)
Catchweight 80kg
Rashed Dawood (UAE) beat Otabek Kadirov (UZB)
(Round-1 submission, rear naked choke)
Lightweight
Ho Taek-oh (KOR) beat Ronald Girones (CUB)
(Round 3 submission, triangle choke)
Lightweight
Arthur Zaynukov (RUS) beat Damien Lapilus (FRA)
(Unanimous points)
Bantamweight
Vinicius de Oliveira (BRA) beat Furkatbek Yokubov (RUS)
(Round 1 TKO)
Featherweight
Movlid Khaybulaev (RUS) v Zaka Fatullazade (AZE)
(Round 1 rear naked choke)
Flyweight
Shannon Ross (TUR) beat Donovon Freelow (USA)
(Unanimous decision)
Lightweight
Dan Collins (GBR) beat Mohammad Yahya (UAE)
(Round 2 submission D’arce choke)
Catchweight 73kg
Martun Mezhulmyan (ARM) beat Islam Mamedov (RUS)
(Round 3 submission, kneebar)
Bantamweight world title
Xavier Alaoui (MAR) beat Jaures Dea (CAM)
(Unanimous points 48-46, 49-45, 49-45)
Flyweight world title
Manon Fiorot (FRA) v Gabriela Campo (ARG)
(Round 1 RSC)
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
MATCH INFO
Quarter-finals
Saturday (all times UAE)
England v Australia, 11.15am
New Zealand v Ireland, 2.15pm
Sunday
Wales v France, 11.15am
Japan v South Africa, 2.15pm
UAE currency: the story behind the money in your pockets
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
Results
STAGE
1 . Filippo Ganna (Ineos) - 0:13:56
2. Stefan Bissegger (Education-Nippo) - 0:00:14
3. Mikkel Bjerg (UAE Team Emirates) - 0:00:21
4. Tadej Pogacar (UAE Team Emirates) - 0:00:24
5. Luis Leon Sanchez (Astana) - 0:00:30
GENERAL CLASSIFICATION
1. Tadej Pogacar (UAE Team Emirates) - 4:00:05
2. Joao Almeida (QuickStep) - 0:00:05
3. Mattia Cattaneo (QuickStep) - 0:00:18
4. Chris Harper (Jumbo-Visma) - 0:00:33
5. Adam Yates (Ineos) - 0:00:39
The Great Derangement: Climate Change and the Unthinkable
Amitav Ghosh, University of Chicago Press
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Scoreline
Real Madrid 1
Ronaldo (53')
Atletico Madrid 1
Griezmann (57')
BELGIUM%20SQUAD
%3Cp%3EGoalkeepers%3A%20Thibaut%20Courtois%2C%20Simon%20Mignolet%2C%20Koen%20Casteels%0D%3Cbr%3E%0D%3Cbr%3EDefenders%3A%20Jan%20Vertonghen%2C%20Toby%20Alderweireld%2C%20Leander%20Dendoncker%2C%20Zeno%20Debast%2C%20Arthur%20Theate%2C%20Wout%20Faes%0D%3Cbr%3E%0D%3Cbr%3EMidfielders%3A%20Hans%20Vanaken%2C%20Axel%20Witsel%2C%20Youri%20Tielemans%2C%20Amadou%20Onana%2C%20Kevin%20De%20Bruyne%2C%20Yannick%20Carrasco%2C%20Thorgan%20Hazard%2C%20Timothy%20Castagne%2C%20Thomas%20Meunier%0D%3Cbr%3E%0D%3Cbr%3EForwards%3A%20Romelu%20Lukaku%2C%20Michy%20Batshuayi%2C%20Lo%C3%AFs%20Openda%2C%20Charles%20De%20Ketelaere%2C%20Eden%20Hazard%2C%20Jeremy%20Doku%2C%20Dries%20Mertens%2C%20Leandro%20Trossard%3C%2Fp%3E%0A
Ultra processed foods
- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns
- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;
- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,
- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
THE LOWDOWN
Photograph
Rating: 4/5
Produced by: Poetic License Motion Pictures; RSVP Movies
Director: Ritesh Batra
Cast: Nawazuddin Siddiqui, Sanya Malhotra, Farrukh Jaffar, Deepak Chauhan, Vijay Raaz
The biog
Prefers vegetables and fish to meat and would choose salad over pizza
Walks daily as part of regular exercise routine
France is her favourite country to visit
Has written books and manuals on women’s education, first aid and health for the family
Family: Husband, three sons and a daughter
Fathiya Nadhari's instructions to her children was to give back to the country
The children worked as young volunteers in social, education and health campaigns
Her motto is to never stop working for the country
MATCH INFO
Tottenham Hotspur 3 (Son 1', Kane 8' & 16') West Ham United 3 (Balbuena 82', Sanchez og 85', Lanzini 90' 4)
Man of the match Harry Kane
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
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Results
4pm: Al Bastakiya – Listed (TB) $150,000 (Dirt) 1,900m; Winner: Panadol, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer)
4.35pm: Dubai City Of Gold – Group 2 (TB) $228,000 (Turf) 2,410m; Winner: Walton Street, William Buick, Charlie Appleby
5.10pm: Mahab Al Shimaal – Group 3 (TB) $228,000 (D) 1,200m; Winner: Canvassed, Pat Dobbs, Doug Watson
5.45pm: Burj Nahaar – Group 3 (TB) $228,000 (D) 1,600m; Winner: Midnight Sands, Pat Dobbs, Doug Watson
6.20pm: Jebel Hatta – Group 1 (TB) $260,000 (T) 1,800m; Winner: Lord Glitters, Daniel Tudhope, David O’Meara
6.55pm: Al Maktoum Challenge Round-1 – Group 1 (TB) $390,000 (D) 2,000m; Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass
7.30pm: Nad Al Sheba – Group 3 (TB) $228,000 (T) 1,200m; Winner: Final Song, Frankie Dettori, Saeed bin Suroor
