THE FSMA IDENTIFIES NEW FRAUDULENT ONLINE TRADING PLATFORMS
Author: Adam Collins
This article was first published by Financial Services and Markets Authority
During the past few weeks, the FSMA continued to receive complaints from consumers concerning new fraudulent online trading platforms that are operating in the Belgian market.
These trading platforms try to arouse consumers’ curiosity by placing scam ads on social media or online video platforms. In these fake ads, a (well-known) person often explains how to get rich quickly. Trading platforms also sometimes use mobile applications to lure victims. These fake ads or mobile applications often offer virtual currency, trading software, or a training course. After clicking on the ad or downloading the mobile app and having given their contact details, the victims are usually swiftly called by fraudsters presenting a concrete investment proposal (in shares, alternative investment products, virtual currencies, etc.). Other trading platforms contact consumers through dating apps and fake social media accounts.
The FSMA notes that several fraudulent trading platforms offer a so-called 'affiliate program' to consumers. These programs exhibit signs of a pyramid scheme.
These platforms act very aggressively. Scammers even try to persuade the victims to allow them to take control of their computers remotely in order to make certain money transfers. The fraudsters also try to convince the victims to invest increasingly higher amounts of money. They also make promises of repayment in exchange for one last money transfer. This is a technique to collect even more money from their victims.
Victims who agree to do so complain in particular about:
- Find themselves unable to recover their money, or
- Simply not hearing any more from the platform with which they have invested their money.
These are most likely cases of investment fraud. Fraudsters not only act without the necessary authorizations, but they also divert the invested funds. In such cases, investors are unable to recover their funds because these illegal service providers are generally located abroad.
***
Various new trading platforms have appeared on the internet in recent weeks.
The FSMA strongly advises against responding to any offers of financial services made by the following new trading platforms:
- ApexCryptoLive (apexcryptolive.com)
- Asset Management (assetmanagement.co.com)
- BatCoin (www.batcns.vip)
- Bid-IV (bidiv.com)
- Bitnexltd (bitnexltd.com)
- Bn93 (www.bn93.com)
- Caplita (caplita.com)
- Capital365 (capital365.fm)
- Capital-Whale (capital-whale.com)
- Coine-ex (coine-ex.com) (cloned firm)
- Coinsdesk (coinsdesk.org) (cloned firm)
- FHN Capital (fhn-capital.com)
- FortuneFX (fortunefx.io)
- FTMTrade (www.ftmtrade.com)
- GlobalOneMarkets (www.globalonemarkets.com)
- GMT investments (gmtinvestments.com)
- Invest Think (investtg.com)
- Marlpark LTD (www.marlparkltd.com)
- Martyn Service (www.martynservice.com, webtrader.martynservice.trade, www.martynservice.net,
- www.martyn-services.net) (cloned firm)
- ProfitsVision (profitsvision.com)
- RCE Banque (rcebanque.com)
- Roisea (roisea.com)
- Spotchains (www.spotchains.com)
- Traderactive (traderactive.com, traderactive.net)
- TSXOTC (tsxotc.com)
- Uni-co (uni-co.org, uni-co.io, uni-co.ltd, uni-co.tech)
- Vestapros (www.vestapros.com)
- Vexxsel (vexxsel.online)
- XproGlobal (xproglobal.com)
In order to avoid fraud, the FSMA addresses the following recommendations to investors:
- Always check the identity (company name, home country, registered office, etc.) of the company. If the company cannot be clearly identified, it should not be trusted.
- Always verify if the company in question has the requisite authorization. To this end, an easy search on the FSMA’s website will do. Take note! Always beware of ‘cloned firms’: companies that pass themselves off as different, lawful companies even though they have no connection with them. A close look at the email addresses or contact details of the companies in question may prove useful in order to detect this type of fraud and prevent it.
More than ever, prudence is necessary. In case of any doubt, and before making any (more) payments, do not hesitate to contact the FSMA using the consumer contact form. As well, please feel free to notify it of any contact with a suspicious company that has not yet been the subject of a warning by the FSMA.
If you have been a victim of investment fraud, the FSMA advises you to file a complaint with the local police or with the judicial authorities.
Moreover, should fraudsters manage to take control of your computer, the FSMA recommends that you contact your bank and, if necessary, that you change your passwords.
***
For more recommendations aimed at avoiding investment fraud, the FSMA invites investors to consult the 'How to recognize and avoid fraud?' page on its website. Also, watch the new awareness campaign videos (available in French or Dutch only).
Image Source: Unsplash.com
Report a Scam!
Have you fallen for a hoax, bought a fake product? Report the site and warn others!
Scam Categories
Help & Info
Popular Stories
As the influence of the internet rises, so does the prevalence of online scams. There are fraudsters making all kinds of claims to trap victims online - from fake investment opportunities to online stores - and the internet allows them to operate from any part of the world with anonymity. The ability to spot online scams is an important skill to have as the virtual world is increasingly becoming a part of every facet of our lives. The below tips will help you identify the signs which can indicate that a website could be a scam. Common Sense: Too Good To Be True When looking for goods online, a great deal can be very enticing. A Gucci bag or a new iPhone for half the price? Who wouldn’t want to grab such a deal? Scammers know this too and try to take advantage of the fact. If an online deal looks too good to be true, think twice and double-check things. The easiest way to do this is to simply check out the same product at competing websites (that you trust). If the difference in prices is huge, it might be better to double-check the rest of the website. Check Out the Social Media Links Social media is a core part of ecommerce businesses these days and consumers often expect online shops to have a social media presence. Scammers know this and often insert logos of social media sites on their websites. Scratching beneath the surface often reveals this fu
So the worst has come to pass - you realise you parted with your money too fast, and the site you used was a scam - what now? Well first of all, don’t despair!! If you think you have been scammed, the first port of call when having an issue is to simply ask for a refund. This is the first and easiest step to determine whether you are dealing with a genuine company or scammers. Sadly, getting your money back from a scammer is not as simple as just asking. If you are indeed dealing with scammers, the procedure (and chance) of getting your money back varies depending on the payment method you used. PayPal Debit card/Credit card Bank transfer Wire transfer Google Pay Bitcoin PayPal If you used PayPal, you have a strong chance of getting your money back if you were scammed. On their website, you can file a dispute within 180 calendar days of your purchase. Conditions to file a dispute: The simplest situation is that you ordered from an online store and it has not arrived. In this case this is what PayPal states: "If your order never shows up and the seller can't provide proof of shipment or delivery, you'll get a full refund. It's that simple." The scammer has sent you a completely different item. For example, you ordered a PlayStation 4, but instead received only a Playstation controller. The condition of the item was misrepresented on the product page. This could be the