"Kuwait Finance House" Warns of Risks of Fake Investments

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 warning comes amid the proliferation of fake companies and fraud schemes that advertise rapid, high returns without any safeguards.

In a press statement issued as part of its efforts to support the “Let’s Be Aware” campaign for banking awareness, in collaboration with the Central Bank of Kuwait and the Kuwait Banks Association, KFH urged the public not to engage with unsolicited calls, advertisements, text messages, or electronic communications from unknown sources, and to consult qualified experts before making 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, 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 supervised 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 returns from projects that are either fictitious or highly risky.

At the same time, banks help those wishing to invest their money and savings achieve the best returns through diversified investment instruments suited to different capacities and resources. These instruments are professionally managed by specialized staff and are subject to oversight and monitoring by multi-level regulatory authorities.

Among the most prominent investment forms offered by banks are “investment deposits,” where 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 for a specified fee, with fund investments spanning various areas such as stocks, bonds, commodities, money markets, and more. Bank investment funds are supervised and licensed by the Capital Markets Authority.

“Investment savings accounts,” which also offer profits to customers, are distinguished by the ability to deposit and withdraw funds at any time. Additionally, “short- and long-term investment plans” help customers meet future personal and family needs, such as children’s education, launching a personal business, or retirement, by regularly saving money in a bank account and investing it to generate returns, ensuring the funds are available when needed.