Fake Vehicle and Health Insurance Flooding UAE Social Media: What to Check Before You Pay

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UAE residents warned as fake vehicle and health insurance offers flood social media. How to verify a policy is real before you pay.

Dubai Police's Anti-Fraud Centre has warned that unlicensed operators are using social media to sell fake vehicle and health insurance policies at below-market prices.
Fraudulent offers typically feature promises of instant policy issuance and direct payments to personal accounts rather than authorised corporate channels.
Policies issued are often forged documents bearing the name of a real insurer, with altered details - or no documentation is provided at all.
Federal Decree-Law No. 48 of 2023 makes operating as an unlicensed insurer or broker a criminal offence in the UAE, with penalties including fines and imprisonment.
Residents can verify a provider's licence through the Central Bank of the UAE and report suspected fraud via the eCrime platform at ecrimehub.gov.ae.
The warning forms part of Dubai Police's ongoing #BewareofFraud campaign targeting multiple categories of digital fraud affecting UAE residents.

How CBUAE Licensing Defines the Line Between Real and Fake Cover

Dubai's Anti-Fraud Centre has placed fake insurance offers at the centre of its consumer protection agenda, warning that unlicensed operators are exploiting social media platforms to market vehicle and health policies at prices well below the regulated market rate. The warning was issued under the #BewareofFraud campaign by the General Department of Criminal Investigation. It signals how fraudsters have identified mandatory insurance requirements as a reliable target for digital deception.

Since the Insurance Authority merged into the Central Bank of the UAE (CBUAE) in 2021, all licensing of insurers and intermediaries has been consolidated under a single federal regulator. Federal Decree-Law No. 48 of 2023 Regulating Insurance Activities makes conducting insurance business without a valid CBUAE licence unlawful. Any entity marketing policies on social media without that authorisation sits outside the law - and the policies it sells offer no real cover.

How the Scam Works: Low Prices, Fast Issuance, and Non-Standard Payments

These scams follow a consistent pattern. Fraudulent operators publish polished adverts on Instagram and other platforms, offering motor or health policies at prices noticeably below the market rate. They then pitch instant policy issuance - a detail that mimics legitimate digital insurers and plays on the expectation that modern insurance can be purchased in minutes.

Once contact is made, buyers are directed to complete payment via a personal bank account, an unregistered number, or an informal transfer channel. The policy that follows - if any arrives at all - is typically a forged document bearing the name of a real insurer, with personal details altered. In some cases, fraudsters simply disappear after receiving payment.

This technique mirrors what the UK's Financial Conduct Authority (FCA) calls "ghost broking": selling fictitious or forged motor policies via social media to price-sensitive buyers. The FCA found that 49% of young drivers in the UK had purchased insurance through social media, and 39% said they could not confidently identify a fake policy. RAK Police issued a comparable warning earlier in 2026, noting that car insurance adverts offering prices well below the minimum approved rates should be treated with heightened suspicion.

Legal Consequences for Buyers and Operators

For residents who unknowingly purchase a fake policy, the immediate risk is being uninsured without knowing it. A driver stopped by police or involved in an accident will quickly discover that the document they carry is invalid - which can result in fines, prosecution for driving without insurance, and vehicle seizure.

For operators running fake insurance schemes, the UAE's legal framework is explicit. UAE law imposes prison terms and fines of up to AED 500 million for unlicensed insurance operators. The use of electronic platforms to defraud victims attracts additional liability under Federal Decree-Law No. 34 of 2021 on Combatting Rumours and Cybercrime.

Dubai Police noted that these scams involve entities claiming to provide instant vehicle or health insurance services, pressuring buyers into transferring funds before any licence check is completed. When a fraudster induces someone to transfer money on the basis of forged documents, the conduct meets the definition of financial fraud under UAE criminal law.

What to Check Before Buying Insurance Online

Dubai Police and the CBUAE are aligned on the core advice: verify before you pay. Before completing any insurance transaction through social media or a messaging app, residents should:

Confirm the provider holds a valid CBUAE licence by checking official Central Bank registers.
Cross-check the contact details and bank account in the advert against the provider's official website.
Treat any quote significantly below the market average as a potential fraud indicator.
Decline requests to pay via personal accounts, informal apps, or unregistered phone numbers.
Ensure policy documentation arrives directly from a licensed insurer or authorised intermediary - not solely from the seller's own messaging channel.

In a related advisory, the CBUAE's Cyber-Security Centre of Excellence has cautioned that criminals misuse the names and logos of regulated financial institutions to add credibility to fraudulent communications. The presence of a recognisable brand in a social media post does not confirm that the advertiser is authorised.

Where fraud is suspected, residents should report it via the eCrime platform at ecrimehub.gov.ae, where screenshots, chat logs, and payment records can be uploaded as evidence. Non-emergency cases can also be reported by calling 901.

What This Means for Licensed Brokers and Insurance Professionals

For licensed insurance intermediaries, the spread of fake offers on social media creates both a competitive and a reputational challenge. Fraudulent pages sometimes impersonate named, licensed firms directly - generating customer confusion and harm that falls on legitimate businesses with no connection to the scam. As a result, brokers should consider displaying their CBUAE licence number clearly on all digital marketing materials, and communicating to clients that official policy documentation will be issued only through verifiable corporate channels.

Beyond brand protection, there is a broader concern about consumer confidence. If residents become widely sceptical of online insurance offers, the shift to in-person channels could slow the efficiency gains that digital distribution delivers. Brokers have a clear interest in educating clients to distinguish authorised intermediaries from unlicensed ones. Following changes to UAE insurance licensing rules for brokers and agents outside DIFC and ADGM earlier this year, the CBUAE register has become a more reliable cross-check for clients and intermediaries alike.

What Clients are Asking their Advisors

How can I check if an insurance company is licensed in the UAE?

The Central Bank of the UAE (CBUAE) maintains registers of all licensed insurers and intermediaries. Residents can check these registers on the CBUAE website before making any payment. If a provider cannot be found in official records, treat the offer as unlicensed.

What happens if I drive with a fake insurance policy in the UAE?

A fake policy provides no valid cover. If stopped by police or involved in an accident, a driver holding a forged certificate can face prosecution for driving without insurance, fines, and vehicle seizure. This applies even if the driver was unaware the policy was fraudulent.

How do I report a fake insurance offer in the UAE?

Dubai Police direct residents to the eCrime hub at ecrimehub.gov.ae, where screenshots, chat logs, and payment records can be submitted as evidence. Non-emergency cases can also be reported by calling 901. The CBUAE website also accepts complaints about financial fraud involving licensed and unlicensed entities.

Why are fake insurance policies sold so cheaply on social media?

Unlicensed operators have no regulatory costs, solvency requirements, or claims obligations. They can quote any price because they never intend to honour the policy. The gap between a fake offer and the market rate is effectively the cost of the cover the buyer will never receive.