Crypto fraud is everywhere

The global web is unfortunately rife with fraudulent cryptocurrency brokers and trading platforms. These crooks are constantly on the lookout for new investors to rob them of their hard-earned money. But it is not only in Germany that vigorous action is now being taken against these criminal machinations. Tougher measures are being introduced to combat the fraud.

A new law targeting crypto fraud recently came into force in Saudi Arabia. The Saudi Arabian Central Bank, also known as the Saudi Monetary Authority (SAMA), defines fraud as any act that aims to deceive in order to provide a financial advantage to the fraudster or his assistants and cause harm to the defrauded party.

A new law is intended to help combat financial fraud and deception more effectively in the future. The definition of this law is as follows:

- Convicted fraudsters face prison sentences of up to seven years and fines of up to SAR 5 million (approx. US$ 1.3 million). 

- Anyone convicted of inciting fraud faces the same maximum penalties if the fraud takes place and a loss is incurred, or half the same maximum penalties (e.g. imprisonment of up to 42 months and a fine of up to SAR 2.5 million (~USD 650,000) if the fraud does not take place.

- Those convicted of attempted fraud face half the maximum penalties (e.g. imprisonment of up to 42 months and a fine of up to SAR 2.5 million (approx. USD 650,000)). 

- Importantly, repeat offenders and groups of organised financial criminals face up to double the maximum penalty, i.e. prison sentences of up to 14 years and fines of up to SAR 10 million (~USD 2.6 million).

- Courts may grant discretionary exceptions to these penalties, but only if individuals come forward and report the offence before a loss occurs, or if individuals report the offence later but the report leads to the arrest of all others involved.

Around the world, countless unsuspecting people are falling into the clutches of crypto scammers, not only in Saudi Arabia. But we are determined to put an end to these goings-on! As representatives of numerous clients, including those from Saudi Arabia, we have witnessed first-hand how large sums of money were paid to fraudsters. We would therefore like to urgently point out that anyone can become a victim and urge caution. Whether effective protection can be guaranteed by new laws and stricter penalties, however, remains to be seen.