Dubai judicial authorities recently announced a typical digital asset scam case, where a woman was sentenced for executing a wallet swapping scam during a business meeting.

The incident was quite covert. During a business negotiation in Dubai, she used a hardware wallet that looked almost identical to the victim's device to swap out the device, then secretly manipulated the wallet to transfer approximately $1 million worth of digital assets in one go. This "substitution" style scam exploited people's blind spots in distinguishing genuine hardware devices.

The Dubai Criminal Court ultimately ruled that she committed theft, sentencing her to two months in prison, a fine based on the stolen assets' value at the time, and permanent deportation. The civil court later added a judgment requiring her to compensate the victim with 4.3 million dirhams (about $1.2 million).

This case serves as a warning to crypto asset holders. While hardware wallets are considered the safest storage method, physical risks are often overlooked—such as swapping, tampering, physical damage, and environmental threats. Especially when dealing with large asset transactions or transfers, verifying device authenticity, ensuring a secure transaction environment, and maintaining vigilance are equally critical.