2023-08-28 11:05:22
The Financial Services and Markets Authority reports three new investment companies acting illegally in Belgium and suspected of fraud.
The Financial Services and Markets Authority (FSMA) warns the public on Monday once morest the activities of several companies that act irregularly. These are companiess IWL Consulting, May Capital Group et South Pass Partners. The latter are not authorized to provide investment services on Belgian territory.
“The scammers subject the consumer to very strong pressure, pushing him to pay more and more money.”
The FSMA therefore strongly advises once morest following up on their offers of financial services and making any payment to a bank account that they provide.
Unable to get his money back
Furthermore, these companies might operate on the principle of “boiler room”a form of fraud that typically involves contacting consumers — uninvited and often over the phone — to offer to buy stocks or other financial products.
“In general, the consumer is attracted by means ofa first investmentof a limited amount, which turns out to be very quickly profitable. Subsequently, the consumer is asked to invest more each time”, explains the FSMA. “When the consumer wishes to recover his money, this proves to be impossible without additional payments and/or new investments begin to show losses. Fraudsters subject the consumer to a very strong pressure, pushing him to always pay more money (hence the English name of “boiler room”, or “chaussurerie” in French). In the end, the consumer never recovers the amounts invested.
In order to prevent investors from falling victim to this type of fraud, the financial authority makes a few recommendations, such as check the identity of the company which offers financial services, check whether the company has a licence, but also consult the warnings published on FSMA websites.
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