Financial Crime World

Unmasking Financial Fraud: FSMA Warns Against New Scams Operating in Belgian Market

The Financial Markets Authority (FSMA) in Belgium has issued a warning against a surge in investment fraud cases involving newly-emerged trading platforms. Below are the key points covered in the warning.

Increase in Investment Fraud Cases

The FSMA has reported an increase in investment fraud cases involving trading platforms advertising virtual currencies, trading software, or training courses on social media and video platforms. These ads often conceal dangerous scams.

Fraudulent Platforms Offer Affiliate Programs

Some of these fraudulent platforms offer “affiliate programs,” which bear the hallmarks of pyramid schemes. These schemes rely on recruiting new members to invest with the promise of returns or commissions paid for each new recruit.

Scammers’ Tactics

Once a victim has transferred funds, scammers may pressure them into investing larger sums or making additional transfers for supposed “lucrative returns.” Scammers may also make promises of repayment and ask for one final transfer to close the deal.

Common Complaints from Victims

Common complaints from victims include losing access to their money or being unable to reach the platform they’ve invested in. These are likely cases of investment fraud due to the unauthorized operations and diversion of investors’ funds.

Suspicious Trading Platforms

The following trading platforms have been identified by the FSMA as potential fraudsters based on their suspicious activities:

Protecting Yourself from Investment Fraud

To avoid falling prey to these scams, investors are urged to:

  1. Verify the identity of the company
  2. Check if the company has the necessary authorization on the FSMA website (https://www.fsma.be/)
  3. Beware of ‘cloned firms’ trying to pose as legitimate companies
  4. Reach out to the FSMA using the consumer contact form before making any payment
  5. Report any suspicious contact from a company not yet listed as a fraudulent enterprise by the FSMA

For more information on recognizing and avoiding investment fraud, investors are encouraged to visit the ‘How to recognize and avoid fraud?’ page on the FSMA website (https://www.fsma.be/consumer/beveiliging-belangstellenden/winstgevende-vennotschapen/).

What to Do if You’ve Been the Victim of Investment Fraud

If you have been the victim of investment fraud, the FSMA advises filing a complaint with your local police or judicial authorities. In cases where scammers have managed to take control of your computer, the FSMA recommends contacting your bank and updating your passwords as soon as possible.