According to a survey conducted by BioCatch, a firm specializing in behavioral intelligence for fraud prevention, 58% of anti-money laundering (AML) and compliance team leaders from banks in the UAE reported an increase in fraud losses at their institutions.

Moreover, 62% of respondents estimated that their organization’s annual fraud losses exceeded AED 18.3 million, roughly equivalent to USD 5 million.

Almost all participants, specifically 95%, identified social media micro-scams as a rising challenge for detection and reporting, particularly concerning cases involving expatriate customers with limited local banking history.

Confidence, Investment, and Reimbursement Practices

Despite the growing losses, UAE banking leaders expressed high confidence in their current fraud protection mechanisms, with 83% rating them as effective or very effective. However, 77% also mentioned that their organization was actively exploring new vendors or solution enhancements, indicating awareness of evolving threats.

Regarding swift response to incidents, 41% of respondents noted that their institution thoroughly investigates the causes of fraud within a single day, compared to a global average of 26%. With respect to reimbursements for scam losses, UAE banks appear less likely to compensate victims than their counterparts globally; only 26% reported reimbursing more than half of scam victims.

Three-quarters of the respondents viewed reputational risk from fraud as a greater concern than any direct financial impact. Additionally, 76% indicated that their bank is either currently using a behavioral biometric solution or considering its implementation.

In comments on the findings, Thomas Peacock, Director of Global Fraud Intelligence at BioCatch, noted that while UAE banks are leading in investments in advanced authentication and machine learning solutions, the increasing use of real-time payments has introduced new opportunities for fraudsters.