UAE bank told to pay for Dh4.7 million after SIM swap fraud

Dubai: A recent judgment by a Dubai court, which held a local bank responsible for a Dh4.7 million SIM card swap fraud, serves as a reminder to all banks and telecom providers to adopt tighter security measures, a Dubai-based lawyer has said on Sunday.

Ghassan El Daye, Partner and Head of Litigation for the Middle East with the UK-based law firm Charles Russell Speechlys, said that in a landmark judgment, the Dubai Commercial Court recently found a local bank responsible for a SIM card swap fraud that cost a customer Dh4.7 million in life savings.

The case dates back to 2017 when the customer’s money was stolen from his account which the bank had then closed without his knowledge.

El Daye said the court has ordered the bank to pay the customer Dh4.7 million with a nine per cent interest from the date the case was lodged.

“This judgment is significant because it involves new essential factors related to the UAE’s banking sector and its customers. The judgment suggests recommendations for banks and telecom providers, including the need to apply strict security measures, carry out continuous monitoring, upgrading of PIN numbers and tighter background checks on employees,” said El Daye.