The Financial Services and Markets Authority (FSMA), Belgium's financial market regulatory watchdog, flagged 38 online trading platforms offering unlicensed services in the country. The list contains foreign exchange (FX), contracts for difference (CFDs) and cryptocurrency trading brands.
FSMA Adds 38 Fraudulent Companies to Warning List
According to FSMA's warning today (Monday), the unlicensed trading platforms use scam advertisements on social media, offering ways to get rich quickly and generate above-average returns. Finance Magnates has checked the listed brands and their websites to confirm that a sizable number of them are still in operation and offer their services to retail customers.
"These platforms act very aggressively," FSMA warned in a written statement. "They often claim to hold authorization by a fake financial authority, displaying it so as to seem trustworthy. Scammers even try to persuade the victims to allow them to take control of their computer remotely in order to make certain money transfers."
The full list of new fraudulent entities can be found on the FMSA's official website. The 38 unlicensed platforms include Assets-Access (https://www.assets-accessltd.com), A-trade International (https://atrintl.com/), BingX (https://bingx.com/en-us), Bitelitgroup (https://bitelitgroup.com/), Bitradercode (https://bitradercode.com/), Common Investments (https://commoninvestments.co/) and many more.
FSMA has reminded it is essential to consistently verify a company's identity, including its name, home country, and registered office. If the company cannot be clearly identified, it should not be trusted. Additionally, confirming whether the company in question possesses the necessary authorization is crucial.
Belgium's FSMA is regularly updating its warning list. Recently, it warned against a Webull clone and 20 other unlicensed platforms. At the end of 2022, the regulator identified another 30 fraudulent websites, including a CoinDesk clone.
Beware the Impersonators
The rise of impersonation schemes involving legitimate authorities has become a prevalent issue, with Belgium's FSMA being the latest to raise concerns about such fraudulent tactics. Fraudsters are utilizing the market watchdog's name and logo to deceive consumers and engage in unethical activity.
According to the FSMA, these fraudsters are posing as employees of the regulatory body and reaching out to victims of investment fraud. They are promising to recover a significant portion of their losses. In return, they request a fee from the victims, employing the well-known strategy of recovery room fraud.
The FSMA states that any emails originating from such addresses are fraudulent and not sent by the FSMA. The regulator advises consumers who receive emails from these suspicious email addresses to refrain from responding and delete them.
It is important to note that the FSMA is not the only financial market regulator grappling with impersonation attempts. The Cyprus Securities and Exchange Commission (CySEC) has also issued several warnings regarding impersonators posing as officials and fake websites. Regulators in the United States, New Zealand, and various other jurisdictions also face similar challenges.
