Belgium’s FSMA Red Flags 40 Trading Platforms as ‘Fraudulent’

Wednesday, 14/09/2022 | 09:00 GMT by Arnab Shome
  • These platforms are illegally offering services in the country.
  • The regulator is actively warning against fraudulent operators.
fsma

Belgium’s Financial Services and Markets Authority (FSMA), one of the stringent European financial market regulators, added the names of 40 trading platforms that are illegally offering financial services in the country.

Some of these platforms are Bitalpha AI, Capital Forex Live, Capital One Markets, Cryptoneyx, FX EliteTrader, GFE Markets, Gigachains, Inetmarkets, Marketsbank, Plus12 and many more.

Additionally, the regulator flagged two “websites for trading software and courses” that refer visitors to fraudulent online trading platforms. These two names are BiTraderPro and a clone of a legitimate platform.

The names were prepared after the Belgian regulator received complaints from consumers.

None of the names was of any well-known trading brand. Rather, these are offshore entities and fraudulent platforms that are operating in a market that has already banned the retail sale of over-the-counter (OTC) derivatives.

Aggressive Tactics

According to the FSMA, the flagged platforms “try to arouse consumers’ curiosity by placing scam ads on social media.” It further highlighted that “a (well-known) person often explains how to get rich quick” in those “fake ads.”

The platforms place fake ads as a part of the offerings of virtual currencies or trading courses. The fraudsters approach the potential investors who provide contact details and offer a “concrete investment proposal.”

Several of these fraudulent trading platforms approach victims through dating platforms. Earlier, the FSMA warned against the rampant trading scams being pulled out using dating platforms.

“These platforms act very aggressively,” the FSMA stated.

“Scammers even try to persuade the victims to allow them to take control of their computer remotely in order to make certain money transfers. The fraudsters also try to convince the victims to invest increasingly higher amounts of money. They also make promises of repayment in exchange for one last money transfer. This is a technique to collect even more money from their victims.”

The latest list came months after the FSMA flagged 38 other online trading platforms for their fraudulent operations.

Belgium’s Financial Services and Markets Authority (FSMA), one of the stringent European financial market regulators, added the names of 40 trading platforms that are illegally offering financial services in the country.

Some of these platforms are Bitalpha AI, Capital Forex Live, Capital One Markets, Cryptoneyx, FX EliteTrader, GFE Markets, Gigachains, Inetmarkets, Marketsbank, Plus12 and many more.

Additionally, the regulator flagged two “websites for trading software and courses” that refer visitors to fraudulent online trading platforms. These two names are BiTraderPro and a clone of a legitimate platform.

The names were prepared after the Belgian regulator received complaints from consumers.

None of the names was of any well-known trading brand. Rather, these are offshore entities and fraudulent platforms that are operating in a market that has already banned the retail sale of over-the-counter (OTC) derivatives.

Aggressive Tactics

According to the FSMA, the flagged platforms “try to arouse consumers’ curiosity by placing scam ads on social media.” It further highlighted that “a (well-known) person often explains how to get rich quick” in those “fake ads.”

The platforms place fake ads as a part of the offerings of virtual currencies or trading courses. The fraudsters approach the potential investors who provide contact details and offer a “concrete investment proposal.”

Several of these fraudulent trading platforms approach victims through dating platforms. Earlier, the FSMA warned against the rampant trading scams being pulled out using dating platforms.

“These platforms act very aggressively,” the FSMA stated.

“Scammers even try to persuade the victims to allow them to take control of their computer remotely in order to make certain money transfers. The fraudsters also try to convince the victims to invest increasingly higher amounts of money. They also make promises of repayment in exchange for one last money transfer. This is a technique to collect even more money from their victims.”

The latest list came months after the FSMA flagged 38 other online trading platforms for their fraudulent operations.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6417 Articles
  • 84 Followers

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