Fraud and Scams

$12 Million Worth in Crypto Swindled from Belgian Investors from Last Year

Belgium’s financial watchdog has announced that scammers stole up to $12 million from an investor in the country using fraudulent ads.

In an Oct. 5 warning from the Financial Services and Markets Authority (FSMA), the watchdog calculated that investors in Belgium had lost at least 10 million euros — approximately $11.8 million at the time of writing — within May 2019 and September 2020 to swindling platforms, including those trading with cryptocurrencies.

The FSMA stated that such platforms scammed victims using fake advertisements on social media featuring celebrities’ pictures, directing them to provide bad actors information.

These platforms often use very aggressive methods to try to persuade you to invest ever-larger sums,” the financial watchdog stated. “They will also try to persuade you to let them take control of your computer remotely so as to be able to make certain payments.”

For investors in Belgium, scammers’ techniques include contacting people by phone after being persuaded to give up their contact details and offering to manage their assets. Fraudsters dangle “promises of high yields or even guaranteed returns.”

Though the FSMA’s estimate also involved fraudulent platforms offering investments in binary options, foreign exchange market products, and contracts for differences, it may represent a surge in the number of crypto fraud cases across Belgium.

It has been reported in May that Belgium’s economic inspectorate said $3.2 million in losses due to cryptocurrency fraud in 2019. The country’s Federal Public Service reported $2.5 million losses to crypto scams the year before that.

Belgian officials have taken preventive measures to tackle the problem. In February, the FSMA blacklisted more than 140 crypto-related fraudulent websites. Nevertheless, the FPS predicted that investors in Belgium typically lose about $152 million to such scams each year, with most incidents going unreported.

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