FSMA Reports 44% Rise in Fraud Complaints, With Half Linked to Crypto Scams

Source : financemagnates, Thursday, 4/7/2023

The Financial Services and Markets Authority (FSMA) has released its dashboard for the first quarter of 2024. The dashboard provides statistics and an overview of the main trends related to investment fraud.

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Cryptocurrency-related scams dominate reports

The latest version of the dashboard highlights several key points. Fraudulent trading platforms and cryptocurrency-related scams still account for about half of the reports regarding illegal activities received by the FSMA.

Scams in the “recovery room”, a type of scam where victims of previous scams are contacted and promised to help recover their losses for a fee, are on the rise. There has been a 59% increase in this type of fraud compared to the same period in 2023.

Earlier, the FSMA warned of the risks posed by supporting trading firms, targeting consumers with promises of risk-free trading opportunities but leading to financial traps, Finance Magnates reported.

These companies allow trading in various products without the need for personal capital, but exploit consumers through expensive mandatory courses. Many participants end up paying for multiple courses without access to real trading, highlighting concerns about transparency and consumer protection in the industry.

FSMA See More Reports

The FSMA noticed a significant increase in the number of consumer reports in the first half of 2024. In the first six months of 2024, the FSMA received 1,332 reports from consumers about illegal activities. In 2023, the FSMA received a total of 925 reports in the first half of the year. This represents an increase of 44%.

Of these reports, 52.3% were complaints from consumers who lost money due to investment fraud or false credit offers. The remaining reports were questions from consumers who had asked the FSMA for information about illegal activities or suspicious market participants, but had not yet paid any money.

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