Kuwait Finance House warns against fake investments and financial fraud

Kuwait Finance House (KFH) has warned customers and the public against high-risk investments being promoted through unofficial channels that are not subject to regulatory oversight or governed by laws ensuring investor protection. This caution comes amid the proliferation of fake companies and fraud schemes advertised through promotions promising quick and high returns without any safeguards.

In a press statement issued as part of its efforts to support the “Let’s Be Aware” campaign aimed at raising banking awareness, and in collaboration with the Central Bank of Kuwait and the Kuwait Banks Association, KFH urged individuals not to engage with unsolicited calls, advertisements, text messages, or electronic communications from unknown sources, and to consult qualified experts before making any investment decisions.

KFH emphasized that Kuwaiti banks offer a diverse range of investment opportunities that help customers grow their savings and achieve good returns with limited and calculated risks, all within a clear regulatory framework that ensures legal and administrative accountability.

Banks, through the investment opportunities they offer and their supervision by the Central Bank of Kuwait, represent a safe and stable option for those wishing to invest their savings and funds, alongside other licensed companies and official entities subject to oversight by authorities responsible for protecting the national economy, financial transactions, and investment activities.

Kuwaiti banks provide various services and products for safe investment, eliminating the need to engage in investment activities with unknown entities that promise alleged financial flows from projects that are either fictitious or highly risky and unsafe.

At the same time, banks assist those wishing to invest their money and savings in achieving the best returns through diversified investment tools suited to different capacities and resources of investors. These tools are professionally managed by specialized staff and are subject to oversight and instructions from multiple levels of regulatory authorities.

Among the most prominent investment forms offered by banks are “investment deposits,” in which the bank invests customer deposits to achieve the best returns over specific periods, with customers entitled to withdraw their deposited amount after the period specified in the contract.

“Investment funds” also enable the growth of shareholders’ funds in exchange for specific fees, with fund investments spanning various areas including stocks, bonds, commodities, money markets, and more. Investment funds offered by banks are supervised and licensed by the Capital Markets Authority.

“Investment savings accounts,” which also provide profits to customers, are distinguished by the ability to deposit and withdraw funds at any time.

“Short- and long-term investment plans” also play a role in helping customers meet future needs and those of their families, such as children’s education, launching a personal project, retirement, or other goals, by regularly saving money in a bank account and investing it to generate returns, ensuring the funds are ready when the period ends.