Belgian FSMA advises public to beware of recovery room fraud
Victims of investment fraud run the risk of being swindled a second time via fake crypto trading platforms, Belgium’s Financial Services and Markets Authority (FSMA) warns.
Every victim of investment fraud runs the risk of being contacted once again by fraudsters, who falsely offer to recover the lost funds. This form of fraud is called recovery room fraud.
The FSMA has noticed that fake platforms for trading in cryptocurrencies are engaging in recovery room fraud.
In most cases, victims receive unsolicited phone calls or emails. The fraudsters are often very aggressive in their approach. They always ask for a fee for their services. They claim these are to cover certain administrative or legal expenses or to pay taxes. But these are purely fictitious costs.
Victims of investment fraud are told they must pay this fee in advance. As soon as the fraudsters receive the fee, they disappear into thin air. It is thus almost impossible to recover the fee. The FSMA therefore strongly advises not to take up such offers.
These fraudsters misuse the identity details of existing companies who are authorized to offer certain financial services. In this way, they try to appear more trustworthy. Fraudsters and their companies also falsely claim to work with the police or with financial supervisors.
The FSMA advises great vigilance if you are contacted, unsolicited, by the following entities:
- ‘Blockchain’ (cloned firm)
‘Blockchain’ is active under the following names, among others: Blockchain Agent Ltd; the international blockchain department; Blockchain Inc; Blockchain (GB) LIMITED; Blockchain Ltd Headquarters; Blockchain Finance Team.
According to information available to the FSMA, “Blockchain” has been contacting victims of, among others, CFD Advanced, Winngroup(s) and Finance Reserves (FRCM), all three of which are on the list of companies operating unlawfully in Belgium.
The FCA, the British financial supervisory authority, has published a warning against the practices of ‘Blockchain’.
- IQBcoin (http://iqbcoin.com/; http://iqbcoin.net/; cloned firm)
According to information available to the FSMA, IQBcoin has been contacting victims of, among others, My Safe Market and Investteck, which are on the list of companies operating unlawfully in Belgium.
IQBcoin describes itself as a platform for investments in cryptocurrencies. It promises investors risk-free high returns.
The FCA has also warned against the activities of IQBcoin.
The above-mentioned entities do not have the requisite permission to offer financial products or services in Belgium.