Charles Russell Speechlys secures landmark banking litigation win for client in Dubai
Charles Russell Speechlys' litigation team in Dubai, led by Ghassan El Daye, has secured a significant victory for a client who was subjected to SIM card fraud by a bank employee and outside accomplices, losing nearly 5 million Dirhams in life savings.
The client was based outside of the UAE at the time the fraud was committed, only to discover upon his return that his bank account had been completely emptied. An employee at the bank had leaked some of the client’s personal information including the phone number registered with the bank, to fraudsters, who were then able to request a SIM card change from the local telecommunications authorities. Neither the bank nor the telecommunications authority took additional security steps to identify who was requesting the changes. The fraudsters were then able to change the PIN code used by the client for his bank account, which in turn enabled them to access his account directly and steal all the funds saved with the bank.
Upon lodging a civil case in Dubai Commercial Court, the Charles Russell Speechlys team argued that the bank was responsible for the client’s losses, after the bank’s employee illegally shared the client’s private details. The Court ruled in favour of our client, and this ruling is the first of its kind in the UAE. There have been many cases involving SIM swap fraud previously; however, banks were not held liable in the past.
The team’s strategy involved bringing in technical experts who helped demonstrate that such a fraud could not have been committed had the bank not failed to protect its client’s personal information registered with the bank. The case is being hailed as a “wake up call” to banks and telecoms companies to introduce tighter security measures and take greater steps to protect their customers’ personal information used to open and register accounts or transact services. With this legal victory, the client will be able to recover his life savings.
Ghassan El Daye, the Charles Russell Speechlys partner who led the team, commented:
"This case is significant because it is the first time a bank is held liable for such losses. It demonstrates the urgent need for the banking sector to tighten up security measures, monitor the use of PIN codes more rigorously and carry out more extensive background checks on employees. Last but not least, telecommunications companies must also impose tighter controls related to SIM card replacement applications. It should not be allowed to issue a replacement SIM card and change the number and registration details with the bank, unless the holder of the card appears physically at both the bank and the telecommunications provider offices with original official documents as proof of identity.”
Our thinking
Daniel Sullivan
Charles Russell Speechlys advises Duke Royalty on increasing and extending its revolving credit facility agreement
London listed Duke Royalty was founded in 2015 and is the leading provider of royalty finance to companies in the UK and Europe.
Patrick Gearon FCIArb
Insolvency Legislation in the GCC
The interesting times of the last 14 months were preceded by the interesting times of the financial crisis of 2008/2009.
David Carver
Guidance where Domestic Abuse alleged
Rhys Novak
Rhys Novak quoted by Citywealth on the ways companies can combat potential issues of fraud
Is fraud on the rise and should investors be wary?
Rhys Novak
Bribery & Corruption team successfully act in Italian bribery prosecution
Helen Coward
Helen Coward, Hugh Gunson and Guy Bud write for Tax Journal on remuneration arrangements in partnerships with mixed membership
Odey Asset Management LLP and HFFX LLP consider the law relating to remuneration arrangements in partnerships with mixed membership.
Bruno Ledrappier
Mind the gap? Enforcing transition-period UK judgments in Switzerland revisited
A decision on an application to apply the Lugano Convention after the end of the UK’s transition period.
Matt Foster
The rise of cost sanctions in family law proceedings (even against successful parties!)
Mark Bailey
CIS General Insurance Limited v IBM United Kingdom Limited - An analysis
Slow and chaotic – lessons from a digital transformation disaster in CIS General Insurance Limited v IBM United Kingdom Limited.
Michael O'Connor
Infra.law - Spring 2021
Click here to read the latest edition of our construction and infrastructure publication, Infra.Law.
Stewart Hey
Stewart Hey featured in The Lawyer's reporting on the post-Brexit disputes landscape in the UK
Post-Brexit, the importance of making sure contracts have certainty with regards to jurisdiction and enforcement has never been greater.
Ghassan El Daye
Ghassan El Daye quoted by The National on the Dubai courts rejection of Dh1.3m rent refund claim
A convenience shop in Dubai lost its claim to a rent refund of Dh1.3 million from its landlord on grounds of lost revenue during lockdown.
John Sykes
Warranties on an indemnity basis: a question of damages
John and Simon take an in-depth look at warranties on an indemnity basis
Sonia Ghai
Sonia Ghai writes for the Practical Law Dispute Resolution Blog on disclosure and documents referenced in expert reports
It is well-established that parties have the ability to seek specific disclosure of documents not already provided by way of disclosure.
Ghassan El Daye
Ghassan El Daye quoted by The National on legal reform in the United Arab Emirates
Once a law change has been made and is effective, a court of law is obliged to follow the new rule and issue its verdicts based in it.
Emma Humphreys
Property Patter: The trendy option – FAQs on tenant CVAs
Listen in for the answers to FAQs on tenant Company Voluntary Arrangements
Sonia Ghai
Disclosure and documents referenced in expert reports: a level playing field?
Sonia looks at the impact of the recent High Court decision in Zverev v Ace Group International Ltd
Simon Heatley
John Sykes and Simon Heatley write for Practical Law on warranties on an indemnity basis
When negotiating the terms of an agreement, an issue that often arises is whether warranties ought to be backed by an indemnity.
Duncan Lamont
The latest phone hacking settlement achieved on behalf of six celebrity clients from Mirror Group Newspapers reported in the press
The news of the latest phone hacking settlements from MGN reported by The Telegraph, Sky News, Yahoo and New Law Journal
Duncan Lamont
Phone hacking: Charles Russell Speechlys achieves settlement for celebrity clients from Mirror Group Newspapers
Charles Russell Speechlys can today confirm the settlement of privacy claims for unlawful voicemail interception on behalf of six clients.