As regulatory bodies from around the globe continue to take stern measures to identify and arrest investment-related illegal activities, more and more cases of fraud are emerging out. On Wednesday, Belgium’s Financial Services and Markets Authority (FSMA) has issued a warning against the unauthorized activities of multiple boiler rooms that are offering investments in the country without complying with Belgian financial legislation.
Boiler rooms use sophisticated tactics to approach investors, offering to buy or sell shares in a way that will bring a huge return. But victims are often left out of pocket – sometimes losing all of their savings or even their family home.
The FSMA released a list of 7 operators which are swaying investors by making false claims while calling their fake products to be transparent for investors to trade. Today’s warning is the latest initiative in its efforts to clamp down on companies engaging in fraudulent activities.
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The latest additions are:
- Akita Matsui Trading (www.amtrading-corp.com)
- Denman-Brys Group (www.denmanbrysgroup.com)
- Evans Chamberlain (www.evanschamberlain.com)
- Mizuho DKB Brokerage / SDD International(www.sddinternational.com)
- Morgan Newfield (www.morgannewfield.com)
- Sky Marketing (www.sky-marketing.com)
- Worldwide Financing Group(www.worldwidefinancinggroup.com)
Some of these are cloned firms, a common type of fraud in which a firm imitates the identity of an existing authorized entity to give the appearance of trustworthiness and legitimacy.
In an update on its website, the regulator defined boiler room scams as a type of fraud that involves contacting customers unsolicited, often by telephone, offering to sell them little-known shares or exotic financial products. Although the boiler rooms often claim to be authorized service providers with professional websites and forms to fill out, they are in reality swindlers that offer fictitious or worthless shares or products.
Based on this, the FSMA strongly advises against responding to any offers of financial or recovery services made by the companies listed above and against transferring money to any account number they might mention.