Fraud is one of the most fact-sensitive financial offences under UAE law. It may involve false representations, impersonation, forged documents, misuse of entrusted funds, online deception, unauthorised fundraising, fraudulent property transactions or the concealment of criminal proceeds.

A financial loss, unpaid debt or failed transaction is not automatically a crime. The legal classification depends on how the asset was obtained, what was represented before the transfer, whether it was entrusted for a defined purpose and what evidence proves the required intent and causal link.

1. General fraud under Article 451

The principal general-fraud provision is Article 451 of Federal Decree-Law No. 31 of 2021 Promulgating the Crimes and Penalties Law.

Article 451 applies where a person uses fraudulent practices, a false name or a false capacity to obtain, for that person or another:

• movable property;
• a written instrument;
• a signature on a written instrument;
• the cancellation or destruction of an instrument; or
• an amendment to its contents.

The conduct must be capable of deceiving the victim and must induce the victim to surrender the relevant property, document or legal instrument.

The same article also addresses certain dealings in buildings or movable property where the person knows that the property does not belong to them, that they have no right to dispose of it, or that it has already been disposed of or made the subject of a prior agreement, where the conduct causes harm to another person.

The completed offence is punishable by incarceration or a fine. Article 451 also provides a specific penalty for an attempt: incarceration for up to two years or a fine not exceeding AED 20,000. An aggravating circumstance applies where State property is affected.

Article 451 therefore reaches beyond the physical taking of cash. Depending on the facts, it may concern signatures, instruments, legal capacity, property dispositions or a benefit obtained for a third party.

2. The legal elements that must be proved

A fraud complaint must establish more than the existence of a loss. Investigators and courts generally examine several connected elements.

Fraudulent conduct

There must be a deceptive act, fraudulent practice, false identity, false capacity or other conduct capable of misleading the victim. A statement that later proves inaccurate is not automatically criminal fraud; its wording, context and the speaker’s knowledge at the time are material.

Criminal intent

The prosecution must establish the required intention to deceive and obtain the relevant property, document, signature or benefit unlawfully. This is a central distinction between fraud and an ordinary commercial failure. A genuine transaction may fail after it is made. Failure alone does not prove that the transaction was dishonest from the outset.

Inducement and causation

The deceptive conduct must have influenced the victim’s decision to part with the relevant asset or right. If the alleged representation was made after payment, or had no real connection to the transfer, the required causal link may be difficult to establish.

Acquisition or benefit

The evidence should identify what was obtained, by whom and for whose benefit. The subject may be money, movable property, a document, a signature, the cancellation of an instrument or another legally relevant benefit.

Harm

The conduct must cause legally relevant prejudice or harm to the victim or another person.

Attribution

The evidence must connect the conduct to a specific person or group. The name on a receiving bank account may be important, but it is not always conclusive. The investigation may also need to identify who made the representations, controlled the account, prepared the documents, operated the digital profile and ultimately benefited from the transaction.

3. Related financial and document offences

One factual background may support more than one possible legal classification. The following provisions commonly require consideration:

These provisions should not be applied mechanically. The decisive question is what the evidence proves about the way possession was acquired, the purpose for which property was delivered and the conduct that followed.

4. Internet fraud and unauthorised fundraising

Article 40 of Federal Decree-Law No. 34 of 2021 on Countering Rumours and Cybercrimes addresses internet fraud.

It applies where a person unlawfully obtains, for that person or a third party, a movable asset, benefit, document or signature by using fraud techniques, an alias or false impersonation through an information network, information system or information-technology equipment.

The penalty is imprisonment for at least one year and/or a fine of not less than AED 250,000 and not more than AED 1,000,000.

Article 41 addresses unauthorised fundraising. It covers calling for or promoting a contest or electronic currency, or creating or managing a fictitious portfolio or company, with the intention of receiving or raising funds from the public for investment, management, employment or increase of those funds without the required licence.

The penalty is imprisonment for up to five years and/or a fine from AED 250,000 to AED 1,000,000. The court must also order the return of funds unlawfully obtained where the statutory conditions are established.

The use of WhatsApp, email, a website or social media does not automatically transform every dispute into a cybercrime. The electronic method must form part of the fraudulent conduct, and the remaining legal elements must still be proved.

5. Fraud, breach of trust and contractual non-performance

The distinction often turns on when and how possession was obtained.

Fraud generally concerns obtaining property or a relevant instrument through deception.

Breach of trust under Article 453 generally concerns money, instruments or movable property that were initially delivered lawfully under trust, lease, mortgage or pledge, loan for use, agency or another recognised entrusted arrangement, and were later embezzled, used or dissipated to the detriment of the rightful owner or beneficiary.

A contractual dispute may arise where a party fails to deliver goods or services, a project fails, payment is delayed, an anticipated return is not achieved or the parties disagree about the meaning or performance of an agreement.

These outcomes do not automatically establish criminal conduct. The criminal question is whether the evidence proves deception when the asset was obtained, later misuse of property entrusted for a defined purpose, forgery, unauthorised fundraising or another offence created by law.

A well-structured complaint should therefore explain why the case goes beyond non-performance. Equally, a defence should identify genuine performance, commercial risk, later events and documents that are inconsistent with an original intention to deceive.

6. Licensing in investment-related cases

Where money is collected for investment, financing, financial products, payment services or fund management, the regulatory position can be material.

Article 60 of Federal Decree-Law No. 6 of 2025 Regarding the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business prohibits carrying on licensed financial activities without the required licence. It also regulates the promotion of licensed financial activities and financial products. A licensed financial institution must remain within the scope of its licence.

An investigation may therefore need to examine:

• the precise activity stated on the licence;
• the service actually provided;
• whether the entity received, transferred or managed client funds;
• whether it promoted, arranged or issued a regulated financial product;
• whether the activity fell under the Central Bank, a capital-market authority or a financial-free-zone regulator; and
• whether the entity operated within the limits of its authorisation.

A commercial or trade licence may establish the legal existence of a company. It does not, by itself, authorise every financial activity.

At the same time, a licensing breach does not automatically prove fraud. It may constitute a regulatory or separate criminal violation, while fraud still requires proof of the relevant deception, intent, acquisition and harm.

7. How fraud complaints are handled

The procedural framework is contained in Federal Decree-Law No. 38 of 2022 Promulgating the Criminal Procedures Law.

Filing the complaint or report

Article 12 provides that a complaint may be filed with the Public Prosecution or a Judicial Police Officer. In practice, this may involve the police or another authorised investigative authority, depending on the nature and location of the alleged conduct.

The submission should identify the relevant persons and entities, transaction dates, amounts, representations, documents, accounts and supporting evidence. It should not be limited to the conclusion that the complainant was deceived.

The three-month period in Article 11 is not a universal time limit for every fraud allegation. It applies to offences for which the law specifically requires a complaint, including the limited family situations described in Article 11. Other limitation and procedural rules may apply, so delay should be avoided and case-specific advice may be necessary.

Evidence gathering

Under Article 31, Judicial Police Officers detect offences, search for perpetrators and gather the information and evidence required for investigation and indictment.

The authorities may record statements, review documents, identify the persons involved, examine transaction records and refer the matter to the Public Prosecution. The clarity and organisation of the initial evidence can significantly affect the direction and efficiency of this stage.

Public Prosecution investigation

Article 65 provides that the Public Prosecution conducts the investigation into felonies and misdemeanours where it considers this necessary.

Depending on the case, the prosecution may question parties and witnesses, examine documents and digital records, request banking or corporate information through lawful channels, supervise searches and seizures, and assess whether the evidence supports prosecution.

Where specialised knowledge is required, Article 94 permits the prosecutor to appoint a physician or another expert to establish a particular fact. Article 96 regulates the expert’s written report. In a complex financial case, an expert may be asked to reconstruct the movement of funds, analyse accounts, examine documents or assess technical data.

Precautionary measures

Arrest, provisional detention, travel-related restrictions, search, seizure and asset-preservation measures are not automatic consequences of filing a complaint. They require an applicable legal basis and depend on the evidence, seriousness of the alleged offence and procedural circumstances.

Prosecution decision and trial

After the investigation, the Public Prosecution may request further evidence, close or dispose of the matter where the legal or evidential basis is insufficient, refer the accused to the competent criminal court, or adopt another legal classification supported by the facts.

A referral to court is not a conviction. The criminal court examines the charge, evidence and defence before deciding the case.

Civil damages and recovery

Article 40 states that a complainant is not treated as claiming civil damages unless that intention is expressly stated in the complaint or a later submission, or compensation is claimed.

Depending on the case, a claim may concern the amount transferred, the value of property lost, direct financial damage and other legally recoverable compensation. A criminal complaint does not by itself guarantee recovery. Recovery may also require a civil claim or judgment, execution proceedings, asset tracing and properly authorised precautionary measures.

8. Electronic and financial evidence

Electronic material is frequently central to modern fraud cases. Relevant evidence may include:

• complete email and WhatsApp conversations;
• voice notes and call records;
• bank statements and transfer confirmations;
• advertisements, websites and social-media profiles;
• digital contracts and electronic signatures;
• platform account records;
• device, login and transaction data; and
• company, licensing and beneficial-ownership records obtained through lawful channels.

For civil and commercial evidential purposes, Article 60 of Federal Decree-Law No. 35 of 2022 Promulgating the Law of Evidence in Civil and Commercial Transactions states that electronic evidence should be produced in its original format or through another electronic means, and that the court may request a written presentation of its contents where appropriate.

In a criminal investigation, authenticity, completeness, provenance and forensic reliability remain important. Screenshots may be useful, but they should not be the only material preserved where the original device, full conversation export, email headers, metadata, bank records or platform data are available.

Evidence should be preserved without alteration. Deleting messages, supplying incomplete extracts or publishing accusations online can damage credibility and may create separate legal risks.

9. What a complainant should prepare

A properly structured file will usually include:

1. A concise chronological statement of events.
2. The identity and role of each person and entity involved.
3. Agreements, invoices, receipts and supporting documents.
4. Complete bank statements and transfer records.
5. Details of receiving accounts and payment channels.
6. Advertisements and representations made before payment.
7. Complete communications showing inducement and subsequent conduct.
8. Evidence of requests for performance, explanation or repayment.
9. Details of relevant witnesses or other victims, where lawfully available.
10. A clear calculation of the alleged loss.
11. Available information about related companies or assets.
12. An express statement if civil damages are being claimed.

The complaint should distinguish established facts from inferences and from matters that require official investigation. A short indexed evidence schedule is often more useful than an unstructured volume of screenshots.

10. Common errors that weaken a case

Fraud complaints may be weakened when they:

• treat non-payment alone as proof of fraud;
• fail to identify the representation that caused the transfer;
• omit the chronology or the date of each communication;
• submit cropped or partial screenshots without preserving the source;
• ignore documents that may support an alternative explanation;
• confuse a contractual remedy with a criminal offence;
• fail to identify who made the representation or controlled the account;
• overstate the regulatory effect of a trade licence;
• publish accusations before the investigation is complete; or
• delay until records, accounts or devices are no longer available.

The strength of a complaint depends on whether admissible and reliable evidence establishes the elements of a defined offence—not on the scale of the complainant’s understandable frustration or loss.

11. The position and rights of the accused

The filing of a complaint does not establish guilt. An accused person is entitled to challenge, among other matters:

• the proposed legal classification;
• the authenticity and completeness of documents;
• whether the alleged representations were made;
• the connection between a statement and the transfer;
• the existence of criminal intent at the relevant time;
• ownership or control of the funds or accounts;
• the reliability and provenance of electronic evidence; and
• whether the investigation considered exculpatory material.

A genuine commercial failure, accounting dispute or disagreement over contractual obligations should not be converted into a criminal conviction without proof of every required element. The defence should examine the entire transaction from its beginning, including the commercial purpose, actual performance, payment history, records and the parties’ conduct after the dispute arose.

Conclusion

Fraud in the UAE is not determined by financial loss alone. The decisive question is whether the evidence establishes a legally recognised form of deception, unlawful acquisition, misuse of entrusted property, forgery, internet fraud, unauthorised fundraising or another offence.

The correct approach is to identify the applicable provision, distinguish criminal conduct from civil non-performance, reconstruct the chronology, preserve original evidence, trace the movement of funds, verify the regulatory position and select the correct procedural route.

A strong fraud complaint is not simply an allegation that money was lost. It is a structured presentation showing what was represented, how the victim relied on it, what was transferred, who benefited, what evidence proves each step and which legal provision may apply.

Key official legislation

• Federal Decree-Law No. 31 of 2021 — Crimes and Penalties Law
• Federal Decree-Law No. 34 of 2021 — Countering Rumours and Cybercrimes
• Federal Decree-Law No. 38 of 2022 — Criminal Procedures Law
• Federal Decree-Law No. 35 of 2022 — Evidence in Civil and Commercial Transactions
• Federal Decree-Law No. 6 of 2025 — Central Bank and Regulation of Financial Institutions and Activities
• Federal Decree-Law No. 10 of 2025 — Anti-Money Laundering and Combating Terrorism and Proliferation Financing

Legal information notice: This article is intended for general legal information only and does not constitute legal advice. The application of UAE law depends on the facts, evidence, location of the conduct, identity of the parties and the competent authority. Legislation may be amended. The Arabic text of UAE legislation prevails in the event of any difference between the Arabic and English versions.