Investors in Belgium are facing renewed scam attempts as fraudsters refine their tactics and pose as legitimate financial firms to lure victims into risky or fake investments.
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The Financial Services and Markets Authority (FSMA) has issued a fresh warning to the public after detecting new unauthorized activity targeting Belgian residents.
FSMA Flags Two Suspected Boiler Rooms
The FSMA flagged North Star Management Japan and Part Capital as firms approaching Belgian consumers without authorization to provide investment services. The watchdog urged the public to avoid engaging with these entities and not to transfer any funds linked to them.
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According to the FSMA, both companies display characteristics of boiler rooms – operations that contact individuals without prior request, often with the promise of lucrative investment opportunities.
Boiler rooms usually reach potential victims by phone or email, pitching shares and other investments that allegedly generate fast returns. The schemes have diversified in recent years, now extending to investment advice, managed accounts, term deposits, and crowdfunding -style products.
Victims often see early gains on small initial investments, only to be pressured into increasing the amounts. When they later request withdrawals, access to funds becomes conditional on further payments or the investments suddenly “lose value.” In most cases, the money is never recovered.
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The tactic of applying psychological pressure to secure more payments is what inspired the term “boiler room.”
Red Flags and How to Stay Safe
The FSMA reminded consumers that professional-looking websites or documentation do not guarantee legitimacy. Many scams imitate licensed firms or clone their identities, including email formats and branding.
The regulator advised investors to verify a provider’s authorization status through the FSMA’s “Check your provider” tool. A lack of a warning on the FSMA website does not confirm a firm’s legitimacy, as some fraudulent operators avoid detection for a period and frequently rebrand.
The FSMA highlighted the need for caution when: receiving unsolicited investment proposals, being asked to transfer funds abroad with no clear business link, and being confronted with unusually high return promises or payout conditions tied to extra fees or “taxes.”
Anyone uncertain about the legitimacy of an investment offer is encouraged to contact the regulator via its consumer contact form. The FSMA also welcomes reports of suspicious firms that have not yet appeared on its warning list.
