FSMA in Belgium Warns of New FOREX Fraud Scheme

The Financial Services and Markets Authority in Belgium warned of another fraudulent scheme in FOREX and binary options. This regulator said anonymous groups are returning funds allegedly to ill-fated traders after they lose cash deposits. The FSMA says unscrupulous individuals and companies claim to be law firms or financial services entities with different fictitious identities.

They connive with unregulated and clandestine currency and binary options brokers using databases obtained from clients to go on cold calls offering their help after finding out the victim lost money.

Another scheme is more of the usual information collection tactic used in the Internet. There were instances when unidentified groups ask for personal email addresses and contact information through web-based forums and blog posts.

This illicit practice has become popular and is now dubbed as ‘recovery room”.

Victims are contacted after being scammed. The caller pretends to help the victim recover but the real motive is to extort more cash.

The FSMA has cautioned the public to ignore uncalled-for offers of services purportedly to recoup losses due to currency trading. It also urged traders, who have already lost money against transferring funds to banks or mysterious payment services accounts.