TFS Gulf
  • All categories
    • inPractice
    • Entrepreneur Story
    • Finance Leaders
    • Videos
TheFinanceStory
No Result
View All Result
  • Login
  • Register
  TFS Gulf
  • All categories
    • inPractice
    • Entrepreneur Story
    • Finance Leaders
    • Videos
The finance story
No Result
View All Result
  • Login
  • Register
The Finance Story
No Result
View All Result

Fake financial reports used by UAE companies to raise money

UAE banks are receiving fake financial statements from some small businesses, that are misusing the credentials of reputable audit firms. Here’s the breakdown.

The Finance Story by The Finance Story
Published date: 9th October, 2024
Last edited date: 11th October, 2024
SHARE (0)
Fake financial statements target UAE banks
Share on FacebookShare on Twitter
  • The UAE banking sector is facing serious threats!
  • Some small businesses are submitting fake financial statements to secure loans.
  • Fraudsters are misusing the credentials of reputable audit firms to pull off these scams. Here’s the breakdown.

Fake financial statements submitted to UAE banks

The UAE banking sector is dealing with an alarming rise in bogus financial statements from small businesses.

To present a more favorable financial picture of the business to banks, businesses are altering elements including,

  • Inflated receivables
  • Understated liabilities
  • Exaggerated revenue figures
  • Fake signatures

Misuse of reputable audit firm credentials

Small businesses are creating these bogus reports, but they’re using the credentials of well-known audit firms, except for the Big 4, to not raise suspicion.

Discovery of the fraud

The issue came to light when a bank decided to recheck figures provided by a prospective client with Kreston Menon directly (who was allegedly stated as the auditor).

Raju Menon, Chairman and Group Managing Partner at Kreston Menon Chartered Accountants informed Gulf News.

The firm discovered that the financials were falsified, and the documents didn’t originate from any of their offices. “We’ve uncovered a serious issue, and I hope these cases aren’t widespread,” Menon explained.

Also read: UAE Ministry fines 29 companies over AED 22 million, here’s why

The motivation behind this?

It’s simple; they want to use these falsified financials to secure loans and other services from banks.

About Kreston Menon

Kreston Menon, formerly Morison Menon, is a 30-year-old leading auditing and advisory firm headquartered in Dubai, UAE.

They have a footprint in the UAE with 9 offices and over 350 staff.

Kreston Menon has branches in Abu Dhabi, Sharjah, Ras Al Khaimah, Jebel Ali Free Zone, Dubai Airport Free Zone, Hamriyah Free Zone, KIZAD, and DMCC as well as in other GCC Countries and India.

How can banks protect themselves?

Menon is raising the issue with the Ministry of Economy and may involve the police.

Nonetheless, banks must strengthen their defenses against fraudulent submissions by,

  • Implementing a system similar to India’s Unique Document Identification Number (UDIN).
  • UDIN is an 18-digit code issued for each certified document.
  • This verification mechanism would allow banks to quickly verify the authenticity of financial documents, reinforcing trust and preventing future fraud.

Have you ever come across such cases in the UAE?

The Finance Story

The Finance Story

Recommended for you

UAE’s Private Sector now employs 152,000 Emiratis
Dubai

UAE’s Private Sector now employs 152,000 Emiratis

4th August, 2025 | 3 mins read
Grant Thornton U.S. acquires Latin American AI-savvy outsourcing firm
News

Grant Thornton U.S. acquires Latin American AI-savvy outsourcing firm

4th August, 2025 | 2 mins read
U.S. Accounting Firm Wipfli gets Private Equity from Grant Thornton’s backer
News

U.S. Accounting Firm Wipfli gets Private Equity from Grant Thornton’s backer

4th August, 2025 | 3 mins read
PwC Middle East gets a seat at PwC’s Global Board
Big 4

PwC Middle East gets a seat at PwC’s Global Board

4th August, 2025 | 3 mins read
UAE's influencer's now need a License to post
Dubai

UAE’s influencer’s now need a License for monetising their content

4th August, 2025 | 3 mins read
CAs retain exclusive Tax Audit rights; CMAs, CS excluded
Chartered Accountant

CAs Retain Exclusive Tax Audit Rights; CMA, CS Officially Excluded

23rd July, 2025 | 4 mins read
Next Post
Jay-Z and Megan Thee Stallion left BDO amid theft allegations

BDO Accused Of Stealing, Lose High-Profile Clients Like Jay Z

Start conversation Cancel reply

Your email address will not be published. Required fields are marked *

Popular posts

  • KPMG Partner quits and goes Boutique with high end advisory firm: Now has 5+ offices & 75+ team

    KPMG Partner quits and goes Boutique with high end advisory firm: Now has 5+ offices & 75+ team

    0 shares
    Share 0 Tweet 0
  • Big 4 firms in India: Inside Deloitte, PwC, EY & KPMG career prospects, growth and salaries

    0 shares
    Share 0 Tweet 0
  • Designations in HDFC Bank: From Joining as an Assistant Manager to climbing to the rank of Managing Director.

    80 shares
    Share 0 Tweet 0
  • Big 4 India Partners jumping from one firm to another: High alert as Partner poaching surges

    0 shares
    Share 0 Tweet 0
  • CA Firms Kirtane & Pandit, Guru & Jana, SSKM unite to build India’s Next Big Global Consulting Firm

    0 shares
    Share 0 Tweet 0
  • Hierarchy level in ICICI Bank: Thinking of joining ICICI Bank? Here’s an overview of the employee grades.

    175 shares
    Share 0 Tweet 0
  • ICAI Under Fire: Women Removed from Front Row at CA Students’ Conference Following Guest’s Demand

    0 shares
    Share 0 Tweet 0
  • EY, PwC, Deloitte surpass 3,300 Partners. EY added 1000+ new Partners

    0 shares
    Share 0 Tweet 0
  • UK firm outsourced accounting work to India but quality dropped: Now established his own offshore unit

    0 shares
    Share 0 Tweet 0
  • Deloitte India offers ‘Golden Handshake’ to senior Partners aged 55 & above. Plans to elevate young partners.

    0 shares
    Share 0 Tweet 0
The Finance Story

The Finance Story empowers finance professionals—CFOs, consultants, accountants, tax experts, and bankers—to navigate critical market shifts, industry disruptions, and emerging technologies & trends.

How? We spotlight key opportunities in India and globally, equipping finance professionals with the insights and strategies to drive business growth, optimize decision-making, and position their companies at the forefront

Quick Links

  • Finance
  • Partners
  • Privacy and Policy
  • Terms of use

Follow us

  • /TheFinanceStory
  • @TheFinanceStory
  • /TheFinanceStory
  • @thefinancestory_com
  • TheFinanceStory

© 2022. The Finance Story. All Rights Reserved.

No Result
View All Result
  • TFS Gulf
  • Entrepreneur Story
  • Finance Leaders
  • Videos
  • Login
  • Sign Up

Welcome Back!

Sign In with Google
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Google
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies to personalize your experience. By continuing to visit this website you agree to our use of cookies.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
Book 1:1 call with industry expert