Types of Banking Scams in Malta: MFSA Launches Educational Campaign to Warn Public
The Malta Financial Services Authority (MFSA) has launched an educational campaign to warn the general public about the different types of financial scams that exist and how they can be detected. In a bid to combat the recent surge in financial scams reported locally, the authority aims to equip individuals with the knowledge necessary to avoid falling victim to these schemes.
What You Need to Know
According to the MFSA’s online guide, scammers typically aim to convince people to share personal and account details or lure them into investing money through fake offers or services. The guide highlights various types of financial scams, including:
- Banking and cryptocurrency scams
- Forex scams
- Clones
- Romance scams
- Phishing email attempts
Warning Signs
The MFSA advises the public to refer to a checklist of red flags which can prove useful for spotting a scam. Some of these warning signs include:
- Aggressive selling techniques
- Promotion of limited time offers
- Unlicensed or unregistered companies
- Guarantees on risk-free investments
- “Get rich quick” schemes
- Absence of a padlock symbol near the URL of the website
Protect Yourself
To avoid falling victim to financial scams, consumers are advised to:
- Make transactions with financial entities only once they have ascertained that it is licensed by the MFSA or any other reputable regulator.
- Verify local entities through the MFSA’s Financial Services Register available on its website.
Quote from Dr. Michelle Mizzi Buontempo
“The MFSA is taking proactive measures to protect the public and consumers of financial services. Our approach is two-pronged - we are supervising authorised entities to ensure compliance with legislation while also ensuring that people are sufficiently informed to recognise red flags and prevent falling victim to these schemes.”
Stay Informed
The MFSA encourages the public to follow its social media pages on Facebook and Instagram for information bites on financial scams and how to avoid them. The full online guide is available for download from the website.
What to Do If You’re Scammed
In the unfortunate event that a user ends up being scammed or thinks they might be dealing with a scam:
- Stop transactions with the entity immediately.
- Contact the MFSA via its online form as soon as suspicion arises.
- Gather and relay as much information as possible to aid investigation.
Important Note
Scams may be considered fraudulent in nature, constituting a criminal offence. Contacting the appropriate law enforcement agencies, such as the Malta Police Force, is highly encouraged.