Financial Regulator in Belgium Marks 28 Sites Crypto Scams
The FSMA of Belgium have a blacklist that helps users and investors identify fraudulent cryptocurrency websites. On the 4th of September, the FSMA has posted 28 new links to dangerous websites they believe are potential scams.
As stated by the agency, they have been receiving multiple reports from people who have had their money stolen off of fraudulent crypto websites. This occurs despite the consistent warnings they send to consumers. The process that most scammers use is simple to grasp, as the FSMA states: they promise investors easy, huge returns. Then, they collect enough money for them to vanish along with the investors’ funds.
The update is based on victims reporting fraudulent websites. The blacklist compels people to notify the FSMA if they come across any organization or website that is using cryptocurrency to commit crime. On the regulator’s site, readers can see the February 2018-dated testimony of a victim who has suffered great losses from a cryptocurrency trading platform.
Other FSEs have been supporting the FSMA by providing additional information, thus continually creating efficient educational material that can help investors avoid such scams.
In May, a study led by Chinese authorities outlined what may be key aspects of fraudulent virtual currency profiles. The official study also made a list of the most common scenarios and the keys to identifying a scammer using cryptocurrency.
The agency utilizes HoneCoins.com, a mock ICO in the US, for their strategy aimed at educating investors to minimize their risk of fraud. Their technique is unique in that they present a fake ICO with profitable offer that promises very high returns with minimal investment and effort, and then when a person tries to purchase, the link leads him to a webpage that provides educational content on how to avoid such schemes.