Belgian regulator FSMA shares its 2017 Investment Fraud Complaint Report, where it breaks down the type of investments that have been mostly associated with scam during last year.
2 February, AtoZForex – The Belgian Financial Services and Markets Authority (FSMA) has shared its 2017 Investment Fraud Complaint Report. The report also acts as a warning about the number of consumer complaints the regulator has received in the previous year.
Belgian regulator shares 2017 Investment Fraud Complaint Report
2017 Investment Fraud Complaint Report outlines that there were a total of 1,710 messages that it has received during 2017. Out of them, 702 reports were linked to fraudulent activities. The pyramid schemes with the number 169 are topping the list. The next come Binary Options with 164 and boiler rooms scams with 112 cases.
The regulator further stresses that the overall increase in complaints for 2017 has stood at 13 percent in comparison to 2016. The report further states that messages about fraud or illegal offers regarding Binary Options are now almost equal to some of the most popular financial fraud schemes, such as pyramid schemes, “phishing”, and boiler rooms.
Below is a breakdown of the type of investment fraud that is associated with complaints:
Pyramid schemes: 169
Binary options: 164
Boiler rooms: 118
Virtual currency: 33
FSMA Reports Low Number of Crypto Scams
Another point that was emphasized in 2017 Investment Fraud Complaint Report is that the number of cryptocurrency fraud-related complaints was relatively low. Cryptocurrencies have made it to the list with 33 consumer complaints about digital currency linked scams.
The Chairman of the FSMA, Jean-Paul Servais, has commented:
“Increasing numbers of consumers are finding their way to the FSMA. That is a positive development. The more information we receive, and the more quickly, the better we can warn consumers so as to ensure they do not become victims.”
Belgian financial regulator also notes the increase in complaints to its policy of issuing a growing number of warnings about potentially fraudulent activity. Some of the clients have reached out to the regulator following the fact of scam or to ask about the details of some suspicious solicitations.
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