Financial Crime World

Title: Belgian Financial Markets Witness a 60% Surge in Fraud Cases in H1 2021 📊

Key Findings 🔝

  • The Financial Services and Markets Authority (FSMA) reported a 60% increase in financial fraud cases in H1 2021.
  • Over 1,000 reports and complaints were filed, with fraudulent online trading platforms accounting for 40%.
  • Victims lost around €42 million between May 2019 and June 2021.

FSMA’s Review of H1 2021 Fraud Cases ��etective

The Belgian regulatory body, FSMA, recently published data on financial fraud cases noted in the first half of 2021. A staggering increase of 60% from the same period last year was reported, with 1,087 reports and complaints concerning fraudulent financial activities. Here’s a breakdown of the reported cases:

Fraudulent Online Trading Platforms 💻

Out of all the reported cases, 40% pertained to fraudulent online trading platforms. These platforms primarily focused on offering trading in:

  • Binary options
  • Contracts for difference (CFDs)
  • Forex
  • Cryptocurrencies

The FSMA alerted consumers to be cautious of these fraudulent platforms that use fake advertisements on social media to target potential victims.

App-Based Scams 📱

App-based scams also saw an increase in H1 2021, with promises related to virtual currencies or training.

Celebrity Frauds 🏆

One notable trend was the utilization of photos of French-speaking celebrities in fraudsters’ social media campaigns to target vulnerable investors.

Financial Losses 💥

Financial fraud victims lost approximately €42 million between May 2019 and June 2021.

FSMA’s Response & Consumer Protection 💪

Despite the surge in fraudulent activities, the FSMA remained dedicated to monitoring the markets, issuing public warnings, and flagging suspicious platforms. Belgium is one of a few countries that prohibits the retail sale and distribution of over-the-counter forex instruments, CFDs, and crypto derivatives. However, many platforms still offer their services to Belgian citizens.

Consumer Warnings & Reporting 📢

The FSMA urged consumers to report to the authority if they become victims of fraud. They emphasized the importance of consumer protection in the financial markets and encouraged investors to stay informed and vigilant.