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Dubai employee embezzles Dh800,000 in cryptocurrency fraud

Khaleej Times logo Khaleej Times 12/03/2018 Web Report
Dubai employee embezzles Dh800,000 in cryptocurrency fraud © Provided by Khaleej Times Dubai employee embezzles Dh800,000 in cryptocurrency fraud

An employee of a digital currency trading company allegedly embezzled Dh800,000 from cryptocurrency platform. The firm lodged a case against him after detecting discrepancies in the transaction amounts being entered and actually recorded in the system. 

The expertise and disputes settlement department in Dubai resolved the case, reports Al Bayan newspaper.  

Hashim Al Qaiwani, director of the expertise and disputes settlement department, said that the lawsuit claimed that the employee had taken advantage of his position to establish fake accounts and embezzle the money, the report says.

The department commissioned an expert to conduct an investigation into the company records, analysing the employee's computer and collecting data to determine the extent of the fraud and the damages incurred by the company.

It came to the fore that the accused possessed exceptional skills in managing and developing cryptocurrency trading systems. He circumvented the company's software that was used to record digital transactions.

He would convert a small percentage of the currency being traded on the platform. Then, he would enter the database platform and upload false information into the fake virtual accounts to convert the currency to his own account and other cryptocurrency trading platforms.

The employer had no reason to suspect the employee as he himself had developed the cryptocurrency trading platform and earned laurels for it. 

Unfortunately, due to the management's lack of expertise in implementing IT security systems, they could not detect his fraudulent activities. As the administrator's username was used by the entire technical staff, it was very difficult to trace the fraud and zero in on the culprit.

The company's management found that there were discrepancies in the amounts being entered and actually recorded in the system regarding trading transactions sent and received by individual traders. 

The man responsible for the fraud was identified after personal communications on his computer revealed that he had received large amounts of money, and was planning to buy a home with it.

His fake username was also discovered through these chats, the report pointed out.

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