UAE Firm's Sales Plunge 90% Due to Logo Scam
A UAE-based company, Simply The Great Food, has experienced a significant financial setback after scammers allegedly used the company's logo and product images to trick customers into losing large sums of money. The fraud has caused a sharp decline in sales and tarnished the company's reputation.
The Impact on Simply The Great Food
Shehroze Ramay, CEO of Simply The Great Food, revealed that the company has seen its sales plummet by up to 90% in the last few months. "Ever since the scams started, we noticed a dip in our sales. I’m considering shutting down operations for a few months to contain the losses," he shared. The company, a small home-grown business, depends on daily sales to support local farmers and workers.
How the Scam Worked
The scam started about eight months ago when Shehroze first noticed fraudulent social media ads. Scammers used the company’s logo and images of their A2 Desi Ghee product to promote a “special offer” for just AED1. These ads appeared on platforms like Facebook, TikTok, and Instagram, along with fake websites designed to look similar to Simply The Great Food’s official site.
Customers were tricked into filling out a survey and purchasing the product at an unrealistically low price. These fraudsters are believed to have stolen hundreds of thousands of dirhams from unsuspecting victims.
Financial Struggles and Customer Trust Issues
The scam has caused severe cash flow problems for the company. "We’re struggling to maintain customer trust and keep operations going," said Shehroze. "It’s mentally and emotionally draining to hear so many people telling us about losing their hard-earned money." Simply The Great Food now faces the challenge of rebuilding its reputation and recovering from the financial blow.
Rising Threat of Financial Malware
Experts say scammers are increasingly using advanced technology like artificial intelligence (AI) and machine learning (ML) to deploy sophisticated financial malware. Dubai-based cybersecurity expert Rayad Kamal Ayub explained that one such malware, "PixPirate," is used to manipulate and control applications on victims' devices. This malware can steal online banking credentials, bypass security measures, and even intercept sensitive data like SMS messages.
Fighting Back Against Fraud
While authorities have managed to take down some of the fraudulent websites, the scammers continue to create new ones. "Scammers just keep coming up with new websites each time one is shut down," said Shehroze. The company is actively working to alert customers about the scam through social media and other channels. They've joined social groups and posted warnings on their own platforms to help prevent further losses.
The Cost of Fraud on Small Businesses
This type of fraud is not uncommon, with even major brands like KFC and Al Baik being targeted in the past. However, for a small business like Simply The Great Food, the impact is especially devastating. "I’ve worked hard for eight years to build my reputation, and it’s heartbreaking to see it damaged by something beyond our control," said Shehroze.
The scam serves as a stark reminder of the growing threats faced by small businesses in the digital age. As scammers become more sophisticated, consumers must stay vigilant to avoid falling victim to similar scams.
Protecting Yourself From Online Scams
To avoid falling victim to fraudulent schemes, always verify the legitimacy of deals before making any purchases. Be cautious of offers that seem too good to be true, especially if they involve unfamiliar websites or social media ads. Additionally, consider using secure payment methods and double-checking website URLs for any inconsistencies.
Simply The Great Food is doing everything they can to recover from this setback, but it's a difficult road ahead. If you have encountered a similar scam, report it to the relevant authorities to help prevent further fraud.
Stay safe online and help support small businesses by being informed and aware of the threats lurking in the digital world.