Whether it’s the staggering $6 billion (EGP 303.9 billion) estimated by some Egyptian sources or the roughly $40 million (EGP 2 billion) cited by Prime Minister Mostafa Madbouly on Wednesday, one thing is certain—the FBC platform fraud in Egypt is massive, making it the largest scam of its kind in the region.
The scheme lured users with deceptive yet convincing tactics, enticing them with promises of quick profits for smoke tasks like posting videos or completing social media tasks.
Moreover, the fraudulent operation exploited the trust of respected people within Egyptian society, particularly in rural areas, using them—often unknowingly—to promote a fake company.
However, the operation carried out by FBC is neither the first nor likely the last in the Arab region. In recent months, two major fraudulent schemes in Kuwait resulted in investors losing approximately $130 million through a fake platform called 'Bitcoin Kuwait.' Similarly, in Lebanon, thousands were deceived by a platform named Bytesi, which disappeared overnight after swindling millions of dollars from users.
The Middle East region has witnessed an unprecedented surge in online fraud over the past decade, with scammers exploiting economic vulnerabilities, technological advancements, and regulatory loopholes to amass illicit gains.
From pyramid schemes masquerading as investment platforms to the impersonation of major corporations, these scams have severely eroded trust in the online landscape for both individuals and organizations.
The FBC platform emerged as one of Egypt's largest fraud schemes before its dramatic collapse in February 2025. Presenting itself as a licensed entity focused on software development and digital marketing, it lured users through aggressive advertisement campaigns on platforms like WhatsApp and Facebook, promising high returns for simple tasks such as watching videos and recruiting new subscribers.
FBC has charged an initial subscription fee of $23 (EGP 720) while enticing users with upgraded packages that promised even higher returns. Within months, the platform deceived more than 100,000 users—though some reports suggest the number could be as high as one million—before abruptly shutting down. It was later revealed that funds had been funneled into external accounts through fake digital wallets.
The Economic Affairs and Money Laundering Prosecution has ordered the detention of 14 defendants for four days as part of the ongoing investigation. The group included 12 Egyptians, one Chinese national, and one Japanese national.
As part of the precautionary measures, authorities froze the financial assets of the accused, along with 22 local digital wallets containing $33,560.09 (EGP 1.7 million). Additionally, financial authorities in the UAE and Turkey were notified to freeze three bank accounts linked to the accused.
Investigators also uncovered 1,135 mobile phone SIM cards prepared for activating digital wallets, seized nearly $19,741.23 (EGP 1 million) in cash, and confiscated electronic devices used to manage the fraudulent operation.
The Public Prosecution has asked the Egyptian Computer Emergency Readiness Team (EG-CERT) to examine the seized devices, which include 32 computers and 48 smartphones containing financial transfer records.
Collaboration between the Public Prosecution and the National Telecom Regulatory Authority (NTRA) debunked claims that the platform had been targeted by a cyberattack. Technical analyses confirmed that no actual breaches had occurred within its systems.
The General Administration for Information Technology Crimes tracked 310 reports from victims across various governorates, revealing that approximately $161,878.10 (EGP 8.2 million) had been embezzled in the initial phase of investigations. Authorities expect this figure to surge to billions of pounds as more victims come forward.
Investigations also uncovered an international criminal network behind the operation, with the foreign defendants found to have lilnks to individuals in Asian and European countries.
The Public Prosecution has issued a memorandum to law enforcement agencies to track down nine defendants who fled the country, working in cooperation with Interpol through international judicial channels.
Experts are currently analyzing international transfer records to trace the financial movements of the network. So far, suspicious transactions totaling approximately $2.3 million have been detected in accounts based in Singapore and Cyprus.
In Egypt, another fraudulent platform called White Sands operated between 2021 and 2022, posing as a global investment company allegedly backed by the American firm Omnicom. Driven by economic hardship, many hapless people invested amounts starting at $95, lured by promises of high commissions for recruiting new subscribers.
However, in January 2022, the platform abruptly collapsed, leaving over two million Egyptians with losses exceeding $160 million. The fraudsters cleverly exploited local electronic wallets, such as Vodafone’s services, to convert the funds into digital currencies, rendering recovery efforts nearly impossible.
The HoggPool platform capitalized on the cryptocurrency hype in 2023, falsely claiming to offer "cloud mining" services with daily returns of up to 55%. However, when the platform collapsed in February 2023, losses touched as high as $194 million.
Although authorities arrested 29 individuals, including 13 foreign nationals, the encrypted nature of the transactions made fund recovery extremely difficult.
Egypt’s large population—exceeding 105 million—makes its market particularly attractive for digital fraud schemes.
In late 2024, Lebanon witnessed the sudden collapse of ByteSi, a fraudulent cryptocurrency platform that caused heavy financial losses on thousands of people in a country already grappling with a worsening financial crisis.
The scandal revealed that ByteSi was nothing more than an elaborate Ponzi scheme, disguised as a quantitative trading application. It took advantage of Lebanon’s currency collapse, regulatory void, and widespread financial illiteracy to lure investors.
Although the platform operated for less than a year, it abruptly shut down after seizing approximately $194 million from users. Adding to the damage, victims’ personal data was leaked on the dark web.
To appear legitimate, ByteSi claimed to be backed by four websites it falsely asserted had been established in 2017. The platform required users to invest using USDT, enticing them with promises of high returns in exchange for recruiting new investors.
Its scheme operated on a one-tier commission system, where marketers earned a percentage of the funds brought in, while details regarding minimum investments and return rates remained vague.
ByteSi promoted a fake “click-the-button” trading system, instructing users to log in daily to simulate trading activity. However, in reality, no actual trading took place—the so-called “profits” were merely fabricated figures, sustained by funds from new investors.
In January 2025, investors in Kuwait suffered losses to the tune of about $130 million due to a cryptocurrency scheme orchestrated by an anonymous platform called Bitcoin Kuwait, which collapsed just hours after its launch. According to expert Safaa Zaman, the absence of regulations left young people—who accounted for 60% of the victims—particularly vulnerable.
Kuwait also uncovered fraudulent naturalization networks, where scammers exploited loopholes in legal documentation. Similarly, in Bahrain, thousands of cases of citizenship were obtained through falsified family links, prompting the government to review naturalization records dating back to 2010.
In Kuwait, 750 cases of forgery were recorded, leading to the revocation of nationalities and the imprisonment of those involved.
Fraud schemes were not limited to fake investments but extended to the impersonation of major brands, targeting individuals seeking housing or employment. In the UAE and Saudi Arabia, fraudulent platforms posing as Ejar and Haraj exploited fake rental contracts, causing losses amounting to $2.5 million during the Ramadan period last year.
In Saudi Arabia, over 1,000 fraudulent websites were created to impersonate major recruitment companies, leading to the theft of personal data from thousands of job seekers.
Saudi security services also detected 320 phishing websites mimicking the Sadad payment system and the Musaned recruitment portal. These fraudulent sites facilitated the theft of $28 million through fake invoice payments and job application fees.
Scammers further replicated payment forms from banks such as the Swiss National Bank and Riyad Bank, leveraging geolocation data to tailor phishing campaigns to their targets.
In the UAE, the Mena Global Market platform exploited trust in financial markets by offering investment accounts ranging from $500 to $10,000—without obtaining any licenses from the UAE regulatory agency.
The scheme ultimately led to significant losses, with strict withdrawal restrictions. It was later revealed that the platform was registered in Saint Vincent and the Grenadines, placing it beyond the legal oversight of the UAE’s Securities and Commodities Authority (SCA).
The Bahrain authorities have dismantled a network of 12 fraudsters who posed as employees of a digital payment app, scamming users through fake calls urging them to "update their bank details." The scammers then used stolen verification codes to siphon money.
The Gulf country's Ministry of Interior has also issued warnings about WhatsApp and LinkedIn groups that lure investors with promises of high cryptocurrency returns. Fraudsters, often posing as women to build trust, redirected victims to fraudulent trading platforms such as Expertcapitalsus.
Victims who deposited funds on the platform were later blocked from withdrawing their supposed gains, facing unexpected hurdles such as "surprise taxes" or account freezing fees. The average reported loss per victim amounted to approximately $53,000 (BHD 20,000) over several months.
The social media platform Qatar Living has faced a data breach, exposing user information on the dark web. Hackers also leaked data from QNB, underscoring vulnerabilities within financial institutions.
Such breaches often enable secondary fraud, as stolen data is used to craft highly targeted phishing campaigns.
In 2024, a notable case involved a fraudulent voice call impersonating a CEO, leading to a $480,000 transfer—a tactic that was increasingly common in Qatar.
Omani authorities have issued repeated warnings about phishing scams involving fake websites that mimic official portals.
Fraudsters have cloned the Consumer Protection Authority (CPA) website to steal personal and banking information, facilitating unauthorized withdrawals from victims' accounts.
Meanwhile, the Ministry of Commerce has alerted citizens to a fraudulent email falsely offering “banking protection services,” which instead extracts sensitive data.
Spear phishing and business email compromise (BEC) remain the most prevalent cyber threats, cybersecurity expert Roland Abi Najem told Forbes Middle East, with leaked data fueling highly targeted attacks.
Advancements in artificial intelligence (AI) have also made it easier for fraudsters to create fake content, including deepfake videos used to impersonate executives and authorize fraudulent money transfers.
A growing concern is SIM swapping attacks, where telecom providers are deceived into issuing new SIM cards, allowing criminals to access victims' bank accounts.
While many Middle Eastern countries have strengthened their cybercrime laws, cross-border legal complexities continue to hinder the prosecution of fraudsters.
As many as 95% of Omani consumers are vulnerable to fraud due to overconfidence, often disregarding red flags in unsolicited emails, according to a study conducted by Visa.
AI-driven cybersecurity solutions are crucial in combating fraud, with machine learning systems capable of detecting threats in real time. However, regulatory loopholes and user overconfidence continue to leave millions at risk.
Abi Najem also highlighted on how digital fraud in the Middle East becoming increasingly sophisticated and targeted in recent years. Fraudsters have shifted to advanced techniques such as spear phishing and BEC.
The rapid expansion of digital payments and e-services—accelerated by the COVID-19 pandemic—has opened new avenues for cyberattacks. Abi Najem also notes that AI tools have made it easier for fraudsters to generate deceptive content, including fake text, images, videos, and deepfake material.
Attackers leverage personal data obtained from social media platforms and previous breaches to execute increasingly sophisticated spear phishing campaigns.
BEC scams specifically target executives and suppliers, aiming to authorize fraudulent financial transfers.
Abi Najem has warned that AI has made phishing attacks more convincing, while deepfake technologies allow criminals to impersonate executives or public figures to facilitate illicit transactions.
One of the fastest-growing threats, according to Abi Najem, is mobile banking fraud—particularly SIM swapping attacks, where fraudsters deceive telecom providers into issuing new SIM cards.
The effectiveness of cybersecurity laws in tackling digital fraud varies across the Middle East, Abi Najem explains. While many countries have strengthened their cybercrime regulations, challenges persist—particularly in cross-border enforcement and inconsistent reporting mechanisms.
Awareness of cyber threats is increasing in the region but remains uneven. Larger companies and urban populations tend to be more informed, yet even educated individuals often fall prey to sophisticated scams.
Abi Najem has highlighted that many victims hesitate to report fraud due to concerns over reputational damage, which hinders efforts to detect and combat cyber threats. Additionally, overconfidence in suspicious investment schemes and unverified financial platforms continues to exacerbate the problem.
Artificial intelligence (AI)-powered cybersecurity solutions play a crucial role in preventing digital fraud, with machine learning models detecting threats in real-time and automated response systems accelerating attack containment.
However, Abi Najem warns that AI is a double-edged sword. While it enhances security, it also enables fraudsters to launch sophisticated attacks, such as credential stuffing, and create highly realistic deepfake material to deceive victims.
On the other hand, blockchain technology offers a strong defense against fraud, particularly in financial transactions. Its immutable ledger minimizes the risk of data manipulation.
As a precaution against digital fraud, Abi Najem advises individuals to enable two-factor authentication (2FA) on all sensitive accounts, keep software and devices updated, and use strong, unique passwords—preferably managed through dedicated password applications.
Looking ahead, Abi Najem warns that the growing adoption of the Internet of Things (IoT) will expose new vulnerabilities, making smart devices and connected home systems prime targets for cyberattacks.
To protect themselves from organized financial fraud networks, consumers should stay informed and take proactive measures. Experts emphasize the importance of skepticism toward promises of quick profits and advise conducting thorough research before making any investment.
It is crucial to verify that a company is registered in reputable jurisdictions and legally authorized to operate in the country where it promotes its business. Additionally, ensuring compliance with applicable laws and regulations can help prevent costly mistakes, as rushed decisions often lead to significant financial losses.
To read the article on Forbes Middle East website click here
Cyber Security & Digital Transformation - Consultant & Expert
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