Reading a bank statement and spotting errors, fraud and fees

Your statement is the record of every dirham in and out. Ten minutes a month reading it properly catches fraud, mistakes and fees that would otherwise keep quietly draining your account.

What is on a statement

• The statement period: the start and end dates it covers.
• The opening balance: what you had at the start of the period.
• Credits (money in, such as allowance, salary or refunds) and debits (money out, such as card payments, transfers and fees), each with a date and a description.
• The closing balance: what you had at the end of the period.
• Your account number and IBAN, which you will need when someone sends you money.

Check the maths

• Opening balance + money in - money out = closing balance. If it does not add up, ask the bank.
• Example: opening balance AED 1,200, allowance in AED 800, card spending AED 640, a fee of AED 25. Closing balance = 1,200 + 800 - 640 - 25 = AED 1,335.
• Compare the statement with your own record (receipts, app notifications or a simple notes list).
• Look for the same payment appearing twice on the same day, which may be a duplicate.

Fees to watch

• Minimum balance fees: many UAE banks charge a monthly fee if you fall below their required balance.
• Overdraft interest: charged on the days you are overdrawn, usually at higher rates than loans or credit cards.
• Late payment fees and interest on credit cards if you do not pay in full by the due date.
• Currency and ATM fees abroad: check the ATM screen for fees before you confirm a withdrawal.
• International transfer fees and exchange rate margins (see the banking abroad lesson).

Spotting fraud

• Question any payment you do not recognise, however small, and any merchant name you have never heard of.
• Check for subscriptions you forgot to cancel or free trials that turned into paid plans.
• Real-time notifications help you spot suspicious payments within minutes.
• Be alert to scams such as invoice fraud, where payment details are changed so money goes to a criminal.

What to do if something is wrong

• Contact your bank immediately using the official app or the number on your card, and freeze the card if fraud is possible.
• In the UAE, report fraud to your bank first and then to the police. If the bank's response is unsatisfactory, you can go to Sanadak after 30 calendar days.
• In the UK, tell your bank about an unauthorised payment as soon as you notice, and within 13 months of the payment date. The refund should arrive by the end of the next business day.
• If a UK bank refuses and you disagree, complain to the bank and then, if needed, to the Financial Ombudsman Service.
• Keep screenshots, dates and reference numbers of every contact.