Introduction:
The threat of bank fraud has become one of the most serious concerns worldwide, including in the UAE, with rapid advancement in information technology and increasing complete digitalization of financial transactions. In this respect, the UAE has already promulgated Federal Decree-Law No. 34 of 2021 Concerning the Fight Against Rumors and Cybercrime to address the challenge of cybercrimes. This law is intended to combat different types of cybercrimes, including those targeting financial institutions, by exploiting Information Technology means.
Various Forms of Bank Fraud
- Phishing Scams: In order to seduce individuals into revealing personal or financial information, the offender act as respectable financial institutions and send messages or emails with misleading content. Victims may disclose their login information without realizing that the scammers will have access to their accounts.
- Identity Theft: Cybercriminals steal personally identifiable information, such as social security numbers or passport details, from others, impersonate them, and commit bank account opening frauds, loan applications, and/or other unauthorized transactions.
- Malware Attacks: This type of software secretly infects users' electronic devices and steals important data such as account information or banking details. It is also able to manipulate an online banking session to alter transaction details or divert funds.
- Unauthorized Access: Hackers may take advantage of weaknesses in banking systems or customers' accounts to obtain unauthorized access and transfer funds, modify account balances, or initiate fraudulent transactions.
- Payment Card Fraud: Criminals commit fraud using stolen or counterfeited payment card data through unauthorized purchases or withdrawals using the weaknesses within the payment processing system and security measures of the cards.
Under UAE cyber law, hacking and criminal attacks are generally defined as any intentional action taken to expose, leak, or misrepresent data from electronic networks, information systems, or electronic methods related to bank fraud. It is further elaborated that hacking refers to the act of obtaining unauthorized access or violating licensing provisions, which can result in a fine of between AED 100,000 and AED 300,000 or even detention. The sentence may be increased to a minimum of six months' imprisonment or a fine ranging from AED 150,000 to AED 500,000 if the hacking results in system damage or disruption. Furthermore, participating in hacking for unlawful reasons may result in a minimum imprisonment of one year or fines between AED 200,000 and AED 500,000.
In addition to these penalties, the cyber law criminalizes the unauthorized acquisition of, modification of, disclosure of electronic personal or financial data and prescribes provisional imprisonment for at least 5 years with penalties ranging from AED 500,000 to AED 3,000,000 which is stipulated under Article 6. Then again, Article 9 of the cyber law has included that obtaining third-party symbols or codes without authorization may lead to imprisonment and fines ranging from AED 50,000 up to AED 500,000.
Information network manipulation, fabrication of electronic accounts or websites, illegitimate interception and disclosure of information, and breaches of personal data laws carry different punishments, including imprisonment and fines up to AED 2,000,000. Similarly, forgery of electronic documents and breaches of electronic payment methods, as per Articles 10 and 15, are subject to provisional imprisonment and fines ranging from AED 150,000 to AED 2,000,000.
It further defines cyber fraud under Article 40, which provides that whoever fraudulently obtains movable property, benefits, documents, or signatures by using information technology methods shall be punished with temporary imprisonment for at least 1 year and a fine of AED 250,000 to AED 1,000,000. Article 42 addresses Electronic Extortion and Threat: threatening others via an information network or technology method; imprisonment for up to 2 years and fines from AED 250,000 to AED 500,000. Additionally, the penalties may extend to imprisonment of up to 10 years if the threat involves forcing others to do certain actions or abstain from such.
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