Fraud scam

Cybersecurity experts are worried as fraud cases rise

Technology experts have warned about the rise of fake trading companies that deceive people into investing in fraudulent financial portfolios. These companies have increased in recent years, including in Kuwait. Local bank fraud cases are also on the rise, reaching 128,000 cases from 2020 to 2022.

Dr. Safaa Zaman, a cybersecurity expert and President of the Kuwaiti Society for Information Security, confirmed the increase in fictitious trading companies in the country. She mentioned a recent case where a citizen lost KD300,000 to such a scam. These companies often use names similar to reputable firms and even have offices in well-known complexes. They exploit social media celebrities to promote their schemes and use fast-talking callers to convince victims of high trading profits.

Zaman warned about apps that hack into bank accounts by requesting users’ email and password information. Some apps are operated by criminal organizations. She raised concerns about Kuwait’s largest banks using such apps for international money transfers and called for stricter regulations from the Central Bank.

Dr. Bader Al-Khudary, a Computer Science Professor at PAAET, noted that fake trading companies target the elderly, who are often less proficient with technology. He highlighted the 128,000 fraudulent transactions over three years and called for intensified awareness campaigns. He advised the public to invest through banks and verify the sources of any applications or links before using them.

Financial expert Khaled Al-Kandari pointed out that electronic fraud is rising in the Gulf region, especially in Kuwait. Fake trading companies often lure victims with small initial investments and then ask for larger sums, eventually emptying their bank accounts. He suggested using search engines and verifying licenses to detect fraudulent companies.

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