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Investment fraud and how to avoid it

5 min

Social media platforms can be windows to the world, but also, unfortunately, a breeding ground for scams. More and more, get-rich-quick schemes are flooding our news feeds, especially in relation to cryptocurrencies. On Instagram, Snapchat, Facebook or YouTube, advertisements tout miraculous investments.

But behind these ads lies a darker reality: investment fraud. They may promise that if you make a modest deposit, your investment will be multiplied, but they’re often carefully orchestrated traps laid by scammers. So how can you distinguish reality from illusion? We've put together some tips to help you protect yourself against this type of online fraud.

The mirage of easy gains

Investment fraud often involves an irresistible offer or a unique opportunity. These "deals of the century" boast phenomenal returns, promising to multiply your money in record time. However, once you take the plunge and invest your money, the harsh truth is revealed: the golden opportunity was just a mirage, and the investment didn't exist at all. Sometimes, the first investment might deliver a nice bonus to build trust and encourage you to invest more, but that second investment will result in a big loss.

How to avoid fake investments?

To avoid falling into this trap, some precautions are necessary:

1. Stay on your guard against harassment: If you're constantly being contacted by phone, WhatsApp or email, be wary of these attempts to persuade you.
2. Take a critical view. If people are making outlandish promises, be wary. An unrealistic return that seems too good to be true is usually the sign of a scam. Always ask for clear and understandable information from the other party, and check it! Are you really ready to trust a stranger with your savings?
3. Get information about the other party. Ensure that the company really exists by looking it up online. The website of FSMA (Belgium’s Financial Services and Markets Authority) can help you detect fraudulent schemes. If you can't find any reliable information, don’t invest.
4. Visit Safeonweb, the Belgian government's IT security website, which is full of tips and alerts that help you use the web safely. You can not only learn to recognise warning signs and protect yourself from scammers but also test your knowledge.

For more information, visit the Febelfin website. You'll find an awareness-raising video based on real-life situations.

Learn more

Have you fallen victim to a scam? Follow these steps!

Even the most cautious investors can be caught off guard. If you unfortunately find yourself tricked by a scam, here's what to do:

1. Alert the authorities: file a report with your local police as soon as possible.
2. Get in touch with your contact person or the Easy Banking Centre on 02 762 90 00 (from 7am to 10pm Monday to Friday and from 9am to 5pm on Saturdays).
3. Outside the Easy Banking Centre's opening hours, and only in the event of suspected fraud, call 02 433 43 80.
4. If you have any doubts, the FSMA can help: use the contact form for consumers.

For more information on investment fraud, visit the FSMA website or consult our security tips.

Be discerning when online

Finally, in the wide world of online investments and enticing opportunities, vigilance and information are our best allies. Scammers are devising ever more ingenious schemes and continuing to perfect their tricks. But by arming yourself with knowledge, cultivating a mindset of constructive scepticism and recognising the warning signs, you can protect your finances and avoid the traps they’ve set for you. Never forget: if an offer seems too good to be true, it probably is. Stay safe and invest wisely.