The Financial Services and Markets Authority (FSMA) has
issued a warning about a rising scam targeting individuals who have fallen
victim to investment fraud. Scammers are using the FSMA’s name and logo to
create a false impression of legitimacy in an effort to deceive consumers.
This
type of fraud, known as recovery room fraud, involves fraudsters claiming they
can help victims recover money lost through previous investment scams.
Scammers Impersonate FSMA for Investment Recovery
The fraudsters contact individuals who have been defrauded,
offering to assist them in recovering the funds they lost. However, to proceed
with this supposed recovery process, the scammers ask for upfront payments ,
which they claim are necessary for compensation, taxes, or even fines payable
to the FSMA. These demands are completely false and are part of the fraudulent
scheme designed to extract money from victims without providing any real
assistance.
In particular, the FSMA has identified that one of the
companies involved in this scam is named Protectionline. This fraudulent entity
claims to be able to help victims reclaim their lost investments by submitting
a claim to the FSMA. To further deceive victims, the scammers often impersonate
the FSMA’s official communication channels, using its name and logo to make
their activities appear legitimate.
FSMA Reports Increase in Investment Fraud
Earlier, The FSMA
published a dashboard with statistics and trends on investment fraud. The
report for the second half of 2024 indicates that cryptocurrency scams and
fraudulent trading platforms make up nearly half of all reported fraud cases.
As reported by Finance
Magnates, in 2024, the FSMA received 2,621 fraud reports, reflecting a 20%
increase from 2023. Belgian consumers reported losses totaling €15.9 million,
with €12.5 million attributed to fraudulent trading platforms, mostly linked to
cryptocurrency investments. An additional €1.6 million was lost to fraudulent
portfolio management offers. Throughout the year, the FSMA issued 16 warnings
regarding 297 fraudulent entities and 396 websites.
Warning on Fraudulent Payment Requests
It is important for consumers to be cautious when dealing
with any offers or communications related to the recovery of funds lost in
investment scams. The FSMA advises the public to be aware that these fraudulent
entities do not have any official connection to the FSMA or any legitimate
regulatory body. The FSMA also emphasized that its official website is
www.fsma.be, and individuals should only rely on communication through official
FSMA channels.
Consumers are advised not to respond to any offers or
requests for payment that claim to be associated with the FSMA. The regulator
stated: “The FSMA is not competent to recover lost investments or to ask
for payment for any such a service. Nor is it competent to demand payment for
taxes. It will never contact investors in this regard. The FSMA will also never
ask consumers to provide their financial information or to pay for any
services.”
The Financial Services and Markets Authority (FSMA) has
issued a warning about a rising scam targeting individuals who have fallen
victim to investment fraud. Scammers are using the FSMA’s name and logo to
create a false impression of legitimacy in an effort to deceive consumers.
This
type of fraud, known as recovery room fraud, involves fraudsters claiming they
can help victims recover money lost through previous investment scams.
Scammers Impersonate FSMA for Investment Recovery
The fraudsters contact individuals who have been defrauded,
offering to assist them in recovering the funds they lost. However, to proceed
with this supposed recovery process, the scammers ask for upfront payments ,
which they claim are necessary for compensation, taxes, or even fines payable
to the FSMA. These demands are completely false and are part of the fraudulent
scheme designed to extract money from victims without providing any real
assistance.
In particular, the FSMA has identified that one of the
companies involved in this scam is named Protectionline. This fraudulent entity
claims to be able to help victims reclaim their lost investments by submitting
a claim to the FSMA. To further deceive victims, the scammers often impersonate
the FSMA’s official communication channels, using its name and logo to make
their activities appear legitimate.
FSMA Reports Increase in Investment Fraud
Earlier, The FSMA
published a dashboard with statistics and trends on investment fraud. The
report for the second half of 2024 indicates that cryptocurrency scams and
fraudulent trading platforms make up nearly half of all reported fraud cases.
As reported by Finance
Magnates, in 2024, the FSMA received 2,621 fraud reports, reflecting a 20%
increase from 2023. Belgian consumers reported losses totaling €15.9 million,
with €12.5 million attributed to fraudulent trading platforms, mostly linked to
cryptocurrency investments. An additional €1.6 million was lost to fraudulent
portfolio management offers. Throughout the year, the FSMA issued 16 warnings
regarding 297 fraudulent entities and 396 websites.
Warning on Fraudulent Payment Requests
It is important for consumers to be cautious when dealing
with any offers or communications related to the recovery of funds lost in
investment scams. The FSMA advises the public to be aware that these fraudulent
entities do not have any official connection to the FSMA or any legitimate
regulatory body. The FSMA also emphasized that its official website is
www.fsma.be, and individuals should only rely on communication through official
FSMA channels.
Consumers are advised not to respond to any offers or
requests for payment that claim to be associated with the FSMA. The regulator
stated: “The FSMA is not competent to recover lost investments or to ask
for payment for any such a service. Nor is it competent to demand payment for
taxes. It will never contact investors in this regard. The FSMA will also never
ask consumers to provide their financial information or to pay for any
services.”
This post is originally published on FINANCEMAGNATES.
