What UAE Law Says About Credit-Card Fraud

One of the worst financial crimes in the United Arab Emirates (UAE) is credit card fraud. As more people use digital banking and make purchases online, the number of people who use fake cards has also gone up. The UAE has tough laws and strong cybercrime rules to stop these kinds of crimes and keep citizens, residents, and visitors safe.

This article goes into great detail about what UAE law says about credit card fraud, the penalties for it, the rights of victims, and how to stay safe online.

What You Need to Know About Credit Card Fraud in the UAE

Credit card fraud happens when someone uses someone else’s credit or debit card or their card information without permission to take money or buy things. It also includes making a fake card, copying or cloning one, or using stolen payment information online to make money illegally.

Credit card fraud in the UAE isn’t just about stealing cards. It also includes online purchases, digital payments, and stealing someone’s identity through electronic means. For instance, using someone else’s card information to buy something online or tricking someone into giving you their OTP or card number through phishing links is against the law in the UAE.

Laws in the UAE that deal with credit card fraud

The UAE has a strong legal system that deals with all kinds of financial fraud, but it is especially tough on fraud that involves credit or debit cards. The main legal rules are:

1. The UAE Penal Code, also known as Federal Law No. 31 of 2021

This law includes all types of fraud and forgery that have been around for a long time. Article 399 says that anyone who gets money, property, or benefits through deception, trickery, or a false identity is committing fraud. This article applies to using a credit card to get goods or money in a dishonest way.

2. The UAE Cybercrime Law, also known as Federal Decree-Law No. 34 of 2021

This is one of the most important laws for dealing with financial crimes in the modern world. Article 13 of this law says that anyone who forges, copies, or uses a credit card, debit card, or electronic payment instrument without permission could go to jail and pay a fine of between AED 200,000 and AED 2 million.

People who get or share card information for illegal reasons will get the same punishment. If the fraud leads to real financial gain, the person will go to jail and have to pay more fines.

3. Rules for the Central Bank and Banks

The Central Bank of the UAE also makes sure that banks follow rules about compliance and cybersecurity. Banks must keep an eye on transactions that seem suspicious, protect customer data, and work with the police when fraud is reported.

These laws work together to make sure that financial integrity and digital security stay at the top of the list of things to do in the UAE.

What happens if you commit credit card fraud in the UAE?

The UAE has a zero-tolerance policy toward financial crimes, so the penalties for credit card fraud are very harsh.

• If someone is found guilty of using someone else’s card or payment information without permission, they could go to jail for one month to three years and have to pay a fine of up to AED 2 million.
• People who use technology or hack into systems to forge or clone credit or debit cards could go to jail and pay a fine of between AED 200,000 and AED 2 million.
• Penalties are much harsher for people who commit crimes more than once or who involve a lot of money. Non-UAE nationals are also often deported after serving their sentence.
• The UAE takes credit card fraud very seriously, as shown by these punishments.

How to Tell the UAE About Credit Card Fraud

If someone steals your credit card information, the first thing you should do is act right away. When it comes to getting money back and minimizing loss, time is very important.

• Call your bank right away and block your card so that no more unauthorized transactions can happen.
• To keep your accounts safe, change the passwords and PINs you use to access your online banking.
• You can file a police report at the nearest police station or online through the Dubai Police Smart App or Abu Dhabi Police e-services.
• Keep all proof and evidence, such as receipts for transactions, SMS notifications, and emails.
• Check in with your bank often to see if there are any updates on your refund or recovery.

You help the police look into the crime and raise your chances of getting your money back by reporting it right away.

Victims’ Rights in the UAE

Under UAE law, people who are victims of credit card fraud have full legal rights. The Penal Code and the Cybercrime Law both protect them.

People who have been hurt can:

• Ask the police for help with the investigation.
• If the crime had to do with the internet, you can file a complaint with the UAE Central Bank or the Telecommunications and Digital Government Regulatory Authority (TDRA).
• If you can prove that the bank or the person who hurt you was negligent, you can get money back through civil claims.
• Once the fraud is confirmed, they should get their card or account back.

But if a victim willingly gave out their card number, OTP, or password, the police may see this as personal negligence, which could affect their claims for compensation.

How to Avoid Credit Card Fraud

The best way to deal with fraud is to stop it before it happens. To avoid losing money, both people and businesses need to follow good security practices.

For People:

• Do not give anyone your card PIN, CVV, or OTP.
• Always check out any phone calls or messages that seem to be from your bank.
• When you bank online, make sure your passwords are strong and one-of-a-kind.
• Don’t use public Wi-Fi networks to do business.
• Check your account statements often to make sure there are no charges you didn’t make.
• Only shop online at safe and official (HTTPS) sites.

For Companies:

• Use secure payment gateways that encrypt data.
• Teach your workers how to spot fraud.
• Keep an eye on your transaction monitoring systems.
• Tell the police or banks about any strange things you see.
• These easy steps are very effective at lowering risks.

Why UAE Laws Are So Tough on Credit Card Fraud

People know that the UAE has a safe and reliable financial system. The UAE government has some of the strictest cybercrime laws in the world to keep people trusting digital payments.

Strict punishments make it less likely that criminals, whether they are from the UAE or another country, will go after businesses or consumers in the UAE. This legal system not only protects people, but it also makes the UAE look better as a global financial center that values honesty, creativity, and digital security.

10 Questions That Are Often Asked (FAQs)

1. What does UAE law say about credit card fraud?

It means using someone else’s credit or debit card or card details without their permission to get money or buy things.

2. What laws in the UAE deal with credit card fraud?

The Federal Law No. 31 of 2021 (Penal Code) and the Federal Decree-Law No. 34 of 2021 (Cybercrime Law) are the most important laws.

3. What are the consequences of credit card fraud?

Depending on how serious the crime is, the punishment can be jail time and fines of between AED 200,000 and AED 2 million.

4. Is it possible for foreigners to be sent back to their home country for credit card fraud?

Yes. Most of the time, foreigners who are found guilty of fraud are sent back to their home country after serving their time in jail.

5. What should I do if someone steals my credit card?

Call your bank right away, block your card, change your passwords, and file a police report.

6. Are banks able to give back money lost to credit card fraud?

Banks may give back the stolen money after an investigation if the theft is reported right away and no negligence is found.

7. Are scams that happen online the same as card fraud that happens in person?

Yes. According to UAE Cybercrime Law, both online and offline card fraud can lead to                                  jail time and fines.

8. What can I do to keep my credit card safe from fraud?

Don’t share your personal banking information, use secure websites, and check your accounts often.

9. What happens if someone uses my card without me knowing?

Using your card without permission is against the law. Tell the police and your bank right away so they can look into it.

10. Why do people in the UAE take credit card fraud so seriously?

The UAE has strict penalties to protect residents and keep the economy safe because it hurts people’s trust in the financial system.

Final Thoughts

Credit card fraud is a serious crime in the UAE, and both the Penal Code and the Cybercrime Law have harsh punishments for it. The government has set up a strong legal system to keep people, businesses, and banks safe from these kinds of crimes.

You can stay safe and avoid fraud by knowing your rights, following safe online practices, and understanding these laws. If you see something suspicious, always act quickly. In the UAE, your best defenses against credit card fraud are speed and awareness.