19-02-2025
Dh1 scam: UAE firm's sales 'crash by 90%' after fraudsters use logo to dupe buyers out of up to Dh100,000
A UAE-based company has suffered severe financial setbacks, as well as significant damage to its brand and reputation, after scammers allegedly used its logo and product images to trick customers out of hundreds of thousands of dirhams, according to the firm's CEO.
"Ever since the scams started and people were targeted, we noticed a dip in our sales. In the past few months, our orders have crashed by up to 90 per cent. I am considering shutting down operations for a few months to contain the losses," said Shehroze Ramay, CEO of Simply The Great Food.
Around eight months ago, Shehroze said they first noticed this scam through social media ads. According to him, scammers copied the brand logo and images of A2 Desi Ghee product and promoted an offer for just Dh1. Sponsored ads were posted on platforms like Facebook, TikTok, and Instagram, along with fake websites that closely resembled Simply The Great Food. The frauds ran paid campaigns, prompting potential victims to fill out a survey and purchase the product for Dh1.
Shehroze claimed the company is struggling with cash flow and maintaining customers' trust. "We are a small, home-grown business that depends on daily sales to pay local farmers and workers. It's mentally and emotionally draining to hear so many people telling us about losing their hard-earned money," he added.
Victims of the scam
Talking about a victim, Shehroze said, "A taxi driver, Mr Majid, contacted me after being scammed. He lost Dh1,200, which he had saved for his upcoming wedding trip to Pakistan."
Another victim, who had saved for a deposit on her first property in Dubai, lost Dh100,000 to a scam. She has now filed a police complaint, hoping to recover the money she had set aside for her dream home.
Dubai resident Dharmesh Bhardwaj also fell victim to the scam, losing Dh18,000 when he tried to grab an unbelievable offer of Dh1 for a bottle of pure ghee. Meanwhile, Dinesh Kumar, a UAE resident for 16 years, lost Dh5,030.
Same scam tactics
The stories of these victims mirror one another, with the same scam tactics being used across the board. Dinesh talked us through how he fell for the bogus deal.
"I was scrolling through Facebook when I noticed an offer for ghee (clarified butter) from Simply the great food. I clicked the link to place an order, which redirected me to a different platform. I was prompted to participate in a survey and answer a few innocuous questions. In the next step I had to enter my card details. After that, I received an OTP from my bank. However, the transaction didn't go through, and an error message appeared on the website, so I closed it."
A few hours later, Dinesh received a message stating that a transaction of Dh14,980 on his card was declined due to credit limit. Shortly after, he received another message indicating that a purchase of Dh5,030 had been made. "There was no OTP request for this transaction, possibly because they had added my card to their Apple Pay earlier that morning. Thankfully, I had set a limit on my card's transaction."
Dinesh blocked all his cards and immediately contacted the bank to inform them about the fraud. He requested the bank return the amount, but they denied it. After several emails and visits to the bank, as a gesture of goodwill, the bank agreed to return 25 per cent, which is Dh1,275.
However, Binsy and Nageena received no assistance from their bank after losing money. In October 2024, Nageena also attempted to buy the ghee through the Dh1 deal. Around midnight, she received a message stating that a transaction of Dh1,500 was made on her card.
"After investigation, the bank claimed it was an authorised payment and couldn't help. But I never added my card to Apple Pay—how could it be authorised?" questioned the 40-year-old long-time UAE resident.
Sophisticated financial malware
Scammers are increasingly using artificial intelligence (AI) and machine learning (ML) to deploy malware on payment apps like Apple Pay, WhatsApp, and Google Pay.
Dubai-based cybersecurity expert Rayad Kamal Ayub, managing director of Rayad Group, explained, "PixPirate, a sophisticated financial malware that heavily utilises anti-research techniques. This malware operates through two malicious apps—downloader and a droppee. Once installed, it can:
Manipulate and control other applications
Log keystrokes
Collect a list of apps installed on the device
Instal and remove apps
Access contacts, calls, and location
Read, edit and delete SMS messages
Bypass security measures like Google Play Protect
Anti-virtual machine (VM) and anti-debug capabilities
"PixPirate monitors victim's activities and steal online banking credentials. It targets accounts with the ability to bypass two-factor authentication, making it a significant threat to mobile security," said Rayad.
Alerting consumers
Shehroze reported that while UAE authorities successfully took down a few fake websites duplicating his brand, the fraud remains widespread. "Scammers continue to create new websites each time one URL is shut down."
Shehroze and his team have been alerting buyers and loyal customers about the fraud. They have joined various social groups to spread the word and prevent others from falling for it. They have also posted warnings on our pages, detailing the methods scammers are using.
"Authorities have stated that these scams are common and have targeted big brands like KFC and Al Baik. However, we are not big. I started my business eight years ago, and it has taken me a lot of blood, sweat and tears to build a strong reputation. Unfortunately, this scam has damaged that reputation," he added.
