The Financial Services and Markets Authority (FSMA) has issued a warning about a rising scam targeting individuals who have fallen victim to investment fraud. Scammers are using the FSMA’s name and logo to create a false impression of legitimacy in an effort to deceive consumers.

This type of fraud, known as recovery room fraud, involves fraudsters claiming they can help victims recover money lost through previous investment scams.

Scammers Impersonate FSMA for Investment Recovery

The fraudsters contact individuals who have been defrauded, offering to assist them in recovering the funds they lost. However, to proceed with this supposed recovery process, the scammers ask for upfront payments , which they claim are necessary for compensation, taxes, or even fines payable to the FSMA. These demands are completely false and are part of the fraudulent scheme designed to extract money from victims without providing any real assistance.

In particular, the FSMA has identified that one of the companies involved in this scam is named Protectionline. This fraudulent entity claims to be able to help victims reclaim their lost investments by submitting a claim to the FSMA. To further deceive victims, the scammers often impersonate the FSMA’s official communication channels, using its name and logo to make their activities appear legitimate.

FSMA Reports Increase in Investment Fraud

Earlier, The FSMA published a dashboard with statistics and trends on investment fraud. The report for the second half of 2024 indicates that cryptocurrency scams and fraudulent trading platforms make up nearly half of all reported fraud cases.

As reported by Finance Magnates, in 2024, the FSMA received 2,621 fraud reports, reflecting a 20% increase from 2023. Belgian consumers reported losses totaling €15.9 million, with €12.5 million attributed to fraudulent trading platforms, mostly linked to cryptocurrency investments. An additional €1.6 million was lost to fraudulent portfolio management offers. Throughout the year, the FSMA issued 16 warnings regarding 297 fraudulent entities and 396 websites.

Warning on Fraudulent Payment Requests

It is important for consumers to be cautious when dealing with any offers or communications related to the recovery of funds lost in investment scams. The FSMA advises the public to be aware that these fraudulent entities do not have any official connection to the FSMA or any legitimate regulatory body. The FSMA also emphasized that its official website is www.fsma.be, and individuals should only rely on communication through official FSMA channels.

Consumers are advised not to respond to any offers or requests for payment that claim to be associated with the FSMA. The regulator stated: "The FSMA is not competent to recover lost investments or to ask for payment for any such a service. Nor is it competent to demand payment for taxes. It will never contact investors in this regard. The FSMA will also never ask consumers to provide their financial information or to pay for any services."