FSMA Warns Against Fraudulent Trading Platforms in Belgium
Introduction
In recent weeks, the Financial Services and Markets Authority (FSMA) has noted an increase in complaints about new fraudulent trading platforms targeting the Belgian market.
These platforms use deceptive advertising tactics on social media, online video platforms, and mobile applications to attract victims.
Deceptive Advertising Tactics
These fraudulent entities often attract consumers through scam advertisements featuring well-known individuals who purportedly explain quick ways to become wealthy.
After consumers click on these ads or download an associated mobile app and provide their contact details, they are quickly approached by fraudsters with enticing investment proposals in stocks, alternative investment products, or virtual currencies.
Additionally, some of these platforms reach out to potential victims via dating apps and fake social media profiles, frequently using messaging apps like WhatsApp and Telegram.
Signs of Pyramid Schemes
The FSMA has identified that several of these trading platforms promote ‘affiliate programmes’ that exhibit characteristics of pyramid schemes, where returns for older investors are paid from the contributions of new investors, rather than from profit earned by the operation of a legitimate business.
Aggressive and Fraudulent Tactics
These platforms often operate aggressively, claiming false authorization from fictitious financial authorities to appear legitimate.
Scammers may even request remote access to victims’ computers to facilitate money transfers. They frequently coax victims into making larger investments and promise repayments following “one last transfer,” a tactic used to extort more money.
Common Complaints from Victims Include:
- Inability to recover any invested money.
- Complete loss of communication with the investment platform after sending money.
Identified Fraudulent Trading Platforms
The FSMA has specifically warned against several websites known to be associated with fraudulent activities:
- Bitcoineer: Website 1, Website 2
- Admirria: Website 1, Website 2
- Immediate Alpha: Website 1, Website 2
- Immediate Bitwave: Website 1
- Traderai: Contact Page
FSMA’s Advice to Avoid Investment Fraud
Verification Steps:
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- Check the identity of the company (name, country of registration, physical address, etc.).
- Verify the company’s authorization status via a simple search on the FSMA’s website.
- Beware of ‘cloned firms’: entities that impersonate legitimate firms but have no actual ties to them. Examining email addresses or contact details can help identify such frauds.
Recommendations:
- Exercise caution and, in case of doubt, contact FSMA through their consumer contact form.
- Report any suspicious interactions with unverified companies that are not yet listed by the FSMA.
- If you have fallen victim to investment fraud, file a complaint with local police or judicial authorities.
- If fraudsters have accessed your computer, inform your bank immediately and consider changing your passwords.
Additional Resources
For more detailed guidance on avoiding investment scams, visit the FSMA’s page on How to recognize and avoid fraud?. Also, view the FSMA’s awareness campaign videos available in French or Dutch.
For more details, visit the official warning page on the FSMA’s website
