FSMA Warns Against Trading Platforms Using Social Media

The Belgian regulator has warned against six entities in its latest update.

Over in Belgium, the financial regulator, the Financial Services and Markets Authority (FSMA), remains vigilant against potential scams. This Wednesday, the authority has published a warning against several fraudulent online trading platforms operating within the country.

Namely, the regulator has warned against the following firms: Beflix (www.beflix.net), Blue Lexus (www.bluelexus.net), CFReserve (www.CFReserve.com), OmegaFX (www.omegafx.io), OptionFX (www.optionfx.trade) and Trade Idea (www.tradeidea.co).

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According to the statement published by the watchdog, the abovementioned entities have been placing scam ads on social media featuring a well-known person who is often explaining how to get rich quick.

Once a consumer clicks on the ad, they are asked to give their contact details. This is followed by a swift call from the fraudsters, the FSMA said, who present an investment proposal in investment products such as shares, virtual currencies, etc.

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Thanks to the internet, these financial scams are becoming more and more sophisticated, and what once would have been an obvious scam is now harder to identify.

In fact, scammers are continually utilizing social media in order to trick investors, as opposed to the traditional method of cold calling. Because of this, consumers need to be on alert now more than ever.

FSMA: These platforms act aggressively

“These platforms act very aggressively. 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,” the statement released today said.

Although the FSMA has been continuously warning residents of Belgium against the activities of some of these trading platforms, more have continued to appear online in recent weeks.

“The FSMA therefore strongly advises against responding to any offers of financial services made by the following new trading platforms,” the authority warned.

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