Fraud alert: beware of crypto scams, FSMA lists 99 suspisious websites

• Belgian regulator updates its blacklist of suspicious websites.
• Investors should cary out due dilligence to avoid scams.

Belgian watchdog, the Financial Services Market Authority updated its blacklist of suspicious websites that offer crypto related services. Now the list contains a total of 99 better to be avoided resources.  
The regulator warned that the citizens should stay vigilant and carry out due diligence investigation of the potential investment target. FSMA provided a short guide on typical scam features and outlined several popular schemes. However, the regulator explains that swindlers are very inventive and good at creating a false impression of a legitimate business.

“Generally speaking, it is hard to tell that one has been the victim of investment fraud. Often for several months, the swindlers manage to maintain the illusion that this is an entirely legitimate and highly profitable investment, thereby encouraging their victims to invest even more.

They do not hesitate to employ various particularly effective techniques to this end. Their websites look very professional: they provide you with a personal space where you can track changes in the value of your investment via well-designed tables and graphs,” FSMA states.

Meanwhile, there are several elements typical to scams that should put investors on the alert. For example, swindlers tend to promise a very high rate of return and an ability to withdraw funds at any time with just a couple of clicks. A 100% deposit protection in case of market collapse also doesn’t look credible and aimed at luring people into the scheme.

“All these promises are worthless, however: if an offer is fraudulent, the promises that accompany it are equally so.”  

To avoid a trap, FSMA recommends to check the company’s identity and make sure that they are not blacklisted by any regulator. The Authority reminds that cryptocurrency trading platforms and crypto investment companies.

Earlier this year Australian Competition and Consumer Commission (ACCC) reported that Australian citizens lost AU$2.1 million in crypto related fraudulent schemes.

Read more about online scams and learn how to avoid them.