Fraud under UAE law is the crime of obtaining money, property, or an advantage through deception or false pretences, and it is treated as one of the most common economic crimes of the digital age given the evolving methods used by fraudsters. Both individuals and companies face growing exposure to these schemes as fraudsters adapt their methods to new technology.
To protect commercial and civil transactions, the UAE legislator has put in place strict and decisive legal provisions to confront these practices.
The Legal Definition of Fraud Under UAE Law
Under the UAE Federal Penal Code, fraud is defined as: appropriating for oneself or another movable property, an instrument, or a signature on that instrument, or cancelling, destroying or altering it, by means of fraudulent methods, or by assuming a false name or a false capacity, with the intent to deceive the victim and induce them to hand over the property.
The offence is not limited to traditional, direct fraud — it also extends to electronic fraud carried out online or through telecommunications, which targets the theft of money or confidential banking data using modern information technology.
The Essential Elements of the Crime of Fraud
For the elements of the crime of fraud to be complete and for it to stand before the judicial authorities, the following elements must be present:
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Material Element (Fraudulent Methods)
The use of material means of deception, lies supported by false external appearances, or the assumption of a false capacity (such as claiming to be an official of a government or banking entity), or fraud carried out through fake messages and links.
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Delivery of the Property
The fraudulent methods must result in the victim handing over the money or instrument to the fraudster, as a consequence of having fallen into error and believed the deception.
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Moral Element (Criminal Intent)
The presence of prior criminal intent, and the offender's knowledge that they are taking another person's money without lawful right and through fraudulent means, with the intent to appropriate it.
Penalties for Fraud Under UAE Law
The UAE imposes deterrent and severe penalties on anyone convicted of committing fraud and financial deception offences:
Base penalty: Imprisonment and a substantial fine proportionate to the gravity of the offence and the value of the money obtained.
Aggravating circumstances and electronic penalties: Penalties are doubled and become more severe where the fraud is committed through information technology, the internet, or credit cards, and are accompanied by heavy fines and lengthy custodial sentences.
Deportation for residents: A foreign national convicted of fraud is mandatorily sentenced to deportation from the territory of the United Arab Emirates, following execution of the original sentence.
Restitution and compensation: The law obliges the fraudster to return the money obtained to its owners, in addition to civil compensation for the resulting damage.
How to Protect Yourself and Your Company from Financial Fraud
To avoid falling victim to fraud and deception schemes, legal and banking experts advise following these precautionary measures:
Never share confidential data: passwords or one-time verification codes (OTP) with any party.
Verify identities: confirm the identity of companies and individuals before entering into any commercial contracts or making financial transfers.
Ignore suspicious messages: disregard fake messages and links claiming cash prizes or requesting an update of banking details.
Seek legal advice: engage a qualified legal consultant or licensed lawyer to carefully review commercial contracts and agreements.
| Article | Topic |
|---|---|
| Money Laundering Crimes in UAE Law | Federal Decree-Law No. (20) of 2018 and its penalties |
| Deportation in UAE Law | Judicial and administrative deportation, and how to appeal |
Conclusion
The UAE's strict laws demonstrate its ongoing commitment to building a safe and stable investment and economic environment, free from financial crime. Raising the level of legal and financial awareness is the first line of defence protecting individuals and institutions from the risks of both modern and traditional fraud.
Husain Al Ali Advocates & Legal Consultants provides specialised legal advice and representation in fraud cases, before the Public Prosecution and the competent courts.
Do not rely solely on the information available on the website; you should consult a lawyer to clarify many matters.