🔐 Be Money Safe
- Kacper Duda
- Oct 9, 2024
- 3 min read
5 Rules To Protect Your Finances From Scams And Cybercrime
October is global Cybersecurity Awareness Month. To us, financial awareness is about what to do, but also what to be careful of and avoid!
The UAE’s pace of development, the opportunities it has created over the years, and the corresponding (relative) wealth make people here an easy target for financial scams of all sorts.
So we devote this article to money safety, to make sure your hard-earned money stays with you. Remember, these are in addition to the usual cybersecurity guidelines of strong password security, two-factor authentication and limited trust principles.
1. Pay by credit card wherever you can
It’s just the safer and better way! Credit cards these days frequently offer “purchase protection”, effectively providing you with a level of insurance on your purchases. Should any disputes arise, you can raise a claim and often get your money back from your card company.
Paying by credit card also protects you more from fraud. Any fraudulent transactions you report can be reversed (although it may take a few weeks of chasing to make that happen) so not all money has to be lost!
Lastly, remember from last week’s newsletter - if you get the right card, spending on it can get you benefits. There really is no reason not to use your credit card if you can. Though REMEMBER, always pay off the balance in full every month! Credit cards are not about building up debt, they’re about maximising benefits in a controlled way.
2. Don’t keep cash in your current account (beyond small spending money)
Cash in your current account is exposed. Anyone who gains access to or clones your debit card can very quickly wipe your entire balance and that’s not a good way to lose your savings. There is very little your bank will be able to do for you in these situations.
Separately, keeping your savings in your current account doesn’t get you any interest so your money doesn’t grow. It’s much better to put your savings in a savings account and only keep what you need in your current account.
3. Never share your OTP or UAE Pass with anyone asking for it
No legitimate entities will ever ask you to share a one-time password (OTP) or log into the UAE Pass app for them. Not your mobile provider, not the police, not immigration services. All these scams are designed to inject fear and get you to act.
If you are ever in doubt, call the entity back yourself (on a published phone number) and ask them to clarify your situation.
When you do use OTP or your UAE Pass app, make sure the website is legitimate. Check the URL thoroughly and check the browser connection is secure.
4. Be careful with unsolicited texts asking you to click on a link
Whilst a lot of texts from Amazon, Emirates Post, and Aramex are legitimate, their sheer volume makes it easy to lull you into a false sense of security. There are a number of scams that make the texts look legitimate but the link leads to another website asking you for details and/or payment.
The majority of these services have their own apps and websites you can use to track your orders. It’s much safer to go there and check your shipment once you receive a text. That way you avoid accidentally clicking on any dodgy links.
5. Beware of expat pensions and investment opportunities
Unfortunately, there are a number of legal investment schemes that target expats and their hard-earned money. A lot of them promise 10%+ annual returns, which, whilst achievable, are unsustainable in the long term. These schemes are designed to pay the company first, then the advisor who sold you the product and eventually you.
Be very careful of anyone calling you to offer “unique investment opportunities” or special “expat pensions”. The golden rule is always - if it sounds too good to be true, it probably is. Seek advice from an independent financial advisor who charges you for the advice and is not driven by product commissions.
These 5 rules will enhance your financial security. So apply them and stay money safe.
Disclaimer: Please bear in mind that this email does not constitute financial advice. Any choices you make you are solely responsible for. We always aim to provide the highest quality, independent views but do your own research to ensure you’re comfortable with any changes you make to your personal finances.
