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Belgium’s financial authority issues reports of blacklisted crypto-fraudsters

The watchdog of Belgium has named and shamed 28 entities who have engaged in fraudulent behavior in cryptocurrency activity.

Written by Becky Leighton Published on

The Belgium Financial Services and Markets Authority (FSMA) has updated its cryptocurrency fraud blacklist.

Announced in a post, the FSMA warned users that 28 new sites had been added to the list of cryptocurrency trading platforms which have been found to have engaged in unlawful activity.

The FSMA posted:

Cryptocurrencies are the hype of the year. Fraudsters are well aware of that, and try to attract customers online through fake cryptocurrencies and huge profits. The only thing they actually do, however, is take the customers’ money and disappear. It is as simple as that… The number of victims of cryptocurrency fraud clearly continues to increase. Consequently, the FSMA reiterates its warning against such fraudulent practices.”

The organization also stated that there have been prior warnings and risk alerts. However, there are continued customers lodging complaints regarding lost funds and fraudsters stealing. The FSMA attributed some of the connings to the cryptocurrency “hype” and warns against quick-profit schemes that fraudsters use to find vulnerable victims.

The blacklist is constantly being added to and stands as a compilation formed from the reports of victims.

In August across the European pond, the UK Financial Conduct Authority (FCA) released warnings to citizens regarding cryptocurrency-related scams.

Aligning with Belgium’s authority, the UK FCA has said that there have been a number of increased reports regarding scams. The report tells that fraudsters often use the fame of celebrities to target users:

Cryptocurrency fraudsters tend to advertise on social media – often using the images of celebrities or well-known individuals to promote cryptocurrency investments. The ads then link to professional-looking websites. Consumers are then persuaded to make investments with the firm using either cryptocurrencies or traditional currencies.”

The report concluded on an advisory note of which one should take heed:

Be wary of adverts online and on social media promising high returns on investments in cryptocurrencies or cryptocurrency related products.”

Written by

Internet writer looking to find the right piece. Also presents things on radio and happens to be a chip off the old blockchain. @BeckyRLeighton

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