The Rise of Deceptive Forex Schemes
The conversation starts off friendly but quickly escalates into a hostile exchange filled with threats and abuse. Khaleej Times has an audio recording of a three-minute call in which a man, who once promised wealth, now resorts to verbal aggression after a victim’s investments turn into a nightmare.
The Lure and Betrayal: How Fraudulent Brokers Target Victims
When Imran Zaman, a civil engineer based in Dubai, received a call from DuttFX in September 2024, it wasn’t threats but charm that first drew him in. The “relationship manager” spoke with warmth and assured him that the forex market, impacted by events like US bank collapses, was ripe with opportunity. Lured by promises of massive returns, Imran made his first investment. But things took a turn for the worse, and before he knew it, he had lost Dh180,000. However, his situation deteriorated, and before he realized it, he had lost Dh180,000.
Imran’s story is not an isolated one. Other victims, like Shishir (who lost Dh80,000) and Nalini (Dh52,000), were similarly drawn into these schemes, many taking out loans or maxing out credit cards based on promises of high returns. However, there was one crucial thing these brokers never disclosed: none of the victims had ever set foot in a DuttFX office, as no such physical location exists in the UAE. Similar operations, such as EVM Prime Support, run entirely through websites and cold calls. 
The Manipulative Tactics: How Brokers Operate
The scam follows a well-known pattern: cold calls that begin with friendly advice and reassurances, followed by a request for a small initial deposit of around $1,000. Victims are then allowed small withdrawals, reinforcing the illusion that their investments are safe and easily accessible.
However, as they continue to deposit more, the pressure mounts. Brokers convince their victims to take high-risk trades, claiming it’s the only way to protect their growing profits. When victims attempt to withdraw their funds, they are locked out of their accounts, and their funds are gone. One victim, Mohammed Ayeshan, who lost Dh36,500 to EVM Prime Support, shared how he was led to borrow money on his credit cards, hoping to recover his losses. Instead, his investments spiraled deeper into loss.
Other victims, such as Nalini, were similarly manipulated into investing large sums, only to see their accounts plummet into debt. One of the brokers assured her that withdrawals could be made anytime, adding to the illusion of security. But when her investments began to suffer, they convinced her to deposit even more to “save” her account.
The Ongoing Challenge: How Fraudsters Continue to Thrive
Despite numerous reports and legal cases against similar frauds, these deceptive schemes continue to thrive under new names. The most notorious of these was the Exential Forex fraud, a Dh1 billion Ponzi scheme that affected thousands of expatriates and was exposed in 2017. Since then, other platforms such as MMA Forex, UT Markets, Alpha Bull, and more recently, Acme Consultancy and BlueChip, have used the same tactics—enticing victims with promises of high returns, only to vanish when it comes time to make withdrawals.
Many victims have attempted to file complaints with the Dubai Police and other authorities, but tracking down these fraudulent companies remains difficult. With no physical presence and no registered entities in the UAE, these operations are almost impossible to trace, and legal recourse is scarce.
Expert Warnings: How to Protect Yourself from Forex Scams
Experts urge caution, as these scams continue to evolve. Nigel Sillitoe, CEO of Insight Discovery, warns investors about the risks of dealing with unregulated forex companies. He emphasizes that there are over 40 regulated brokerage firms in the UAE, and investors should stick to these licensed institutions to avoid falling prey to fraudulent schemes.
It is crucial to always verify the legitimacy of any trading platform and be wary of unsolicited calls or offers. Even reputable firms can be impersonated by fraudsters, as seen last year when scammers used the name of Equiti Group to dupe investors.
As scams in the forex and cryptocurrency markets evolve, so must the vigilance of investors. While authorities continue to crack down on fraud, experts agree that prevention is the key to avoiding these financial traps. Always exercise due diligence before making any investments—especially when dealing with unregulated platforms.
Conclusion: A Never-Ending Cycle of Deception
Despite the exposure of these scams and the arrest of several key perpetrators, the cycle of fraud continues. Each new name and website lures fresh victims into their traps, exploiting their trust and financial naivety. Until authorities take decisive action to shut down these operations before they reappear, many will continue to lose their hard-earned money to the same deception, under different names.
