Belgium’s FSMA Warns Against Rising Recovery Room Scams
- These fraudsters target the existing victims of fraudulent investment schemes.
As Belgium’s Financial Services and Markets Authority (FSMA) remains vigilant against fraud, it issued a warning on Monday against the rising 'recovery room' fraud targeting the citizens in the country.
Recovery rooms are a well-known scamming tactic as fraudsters approach investment fraud victims with offers of compensation. These fraudsters often disguise as representatives of law firms or accountants, and even police services or financial supervisors.
The Belgian regulator pointed out that one of the key traits of these fraudsters is that they ask for charges for their services upfront and asked people not to fall for such scams.
“Victims of investment fraud must pay the fee in advance. This is a clear indication that it is a recovery room,” the FSMA stressed.
“The payment is demanded, for example, allegedly to cover certain administrative or legal costs or to pay taxes. These are purely fictitious costs, however. Once the fraudsters have received the fees, they disappear without a trace, and it is almost impossible to recover the amounts paid.”
Already Known Perpetrators
Additionally, the market watchdog named six companies that are fraudulently approaching investment fraud victims, then pulling out of such recovery scams.
The companies are Payback Ltd, a clone firm operating from www.payback-ltd.com; Funds Recovery Ltd, another clone with website www.funds-recovery.com; Lewis & Wright Advocates (www.lewiswrightadvocates.com); Main Trading Center / MTC Institute; LCT Capital, LLC (cloned firm) (www.lctcapitalllc.com); and South Texas Securities, Co. (cloned firm) (www.southtexassecuritiesco.com).
Meanwhile, the FSMA warned investors against other forms of fraud as well. Last week, the regulator flagged trading and training products related to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, contract for differences (CFDs), and Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term that are promoting themselves using a multi-level marketing structure.
As Belgium’s Financial Services and Markets Authority (FSMA) remains vigilant against fraud, it issued a warning on Monday against the rising 'recovery room' fraud targeting the citizens in the country.
Recovery rooms are a well-known scamming tactic as fraudsters approach investment fraud victims with offers of compensation. These fraudsters often disguise as representatives of law firms or accountants, and even police services or financial supervisors.
The Belgian regulator pointed out that one of the key traits of these fraudsters is that they ask for charges for their services upfront and asked people not to fall for such scams.
“Victims of investment fraud must pay the fee in advance. This is a clear indication that it is a recovery room,” the FSMA stressed.
“The payment is demanded, for example, allegedly to cover certain administrative or legal costs or to pay taxes. These are purely fictitious costs, however. Once the fraudsters have received the fees, they disappear without a trace, and it is almost impossible to recover the amounts paid.”
Already Known Perpetrators
Additionally, the market watchdog named six companies that are fraudulently approaching investment fraud victims, then pulling out of such recovery scams.
The companies are Payback Ltd, a clone firm operating from www.payback-ltd.com; Funds Recovery Ltd, another clone with website www.funds-recovery.com; Lewis & Wright Advocates (www.lewiswrightadvocates.com); Main Trading Center / MTC Institute; LCT Capital, LLC (cloned firm) (www.lctcapitalllc.com); and South Texas Securities, Co. (cloned firm) (www.southtexassecuritiesco.com).
Meanwhile, the FSMA warned investors against other forms of fraud as well. Last week, the regulator flagged trading and training products related to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, contract for differences (CFDs), and Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term that are promoting themselves using a multi-level marketing structure.