Have you met someone on a dating platform who is now inviting you to continue the discussion via another channel like WhatsApp or Telegram? Has the person told you he or she has made a fortune and knows someone who can help you make money easily by investing in cryptocurrencies? Beware of scams.
There are, in fact, investment scams that begin on dating applications (like Tinder, Bumble, Hinge, etc.). After having made a match with their targets, the scammers continue the discussion via another online app. Once they have developed a relationship with their victims, they soon begin to talk money. They vaunt their so-called fortune and share their secret for getting rich quick and without risk: a trading platform.
The FSMA has noticed that this type of fraud targets both men and women of all ages. This scam is a worldwide phenomenon that targets every segment of the population. This is why IOSCO decided to emphasize this type of fraud in its campaign, to be disseminated during this year’s World Investor Week.
How does the fraud work?
- Solicitation
Fraudsters contact their victims via various communication channels, including messages sent ‘by mistake’, a fake profile on a dating app or on classic social media like Facebook or Instagram. - Relationship
Most of the time, such scammers pass themselves off as rich people who have made their fortune via trading or in cryptocurrencies. They sometimes pass themselves off as professionals who are offering commercial opportunities. The scammers establish a relationship of trust with their victims, convincing them that they are in a romantic relationship or by claiming to act as their mentor. - Investments
These individuals then suggest that their victims should in turn invest on a trading platform. In some cases, the fraudsters offer to invest jointly with you, in order to share the risk. This method helps them gain the confidence of consumers. In fact, they do not make any investments at all. - Transfer of funds
Instead of asking for money directly, the fraudsters invite their victims to set up their own accounts on a platform and to transfer money to those accounts. However, the accounts are in fact being operated by the same fraudsters who are behind the scam. - Returns
The platform will manipulate the transactions so as to give the impression of substantial earnings. You may even be able to make a few withdrawals. In this way, the fraudsters gain the trust of their victims, who will then invest even more money. - Money is blocked
Ultimately, the fateful day arrives when the consumer is no longer able to withdraw his or her money without first paying an additional sum. The fraudsters give all sorts of pretexts for not releasing the funds (high fees, taxes to be paid, etc.). In the end, the fraudulent platform disappears, taking with it the investors’ money.
What to do if you have been the victim of such a scam?
- Stop making any transactions and break off all contact with the fraudsters; don’t make any more payments and don’t provide any additional personal or financial information. Break off all contact with the fraudsters, including with the person who contacted you on the dating app or social media. They may try to manipulate you in order to take even more money from you.
- Contact your bank: inform your bank immediately if you have made any payments to the fraudulent platform.
- Report the fraud to the competent authorities: Contact the FSMA and file a complaint with the police.
- Document all exchanges of data and transactions: gather all evidence of your exchanges of data with the platform, including emails, messages, account statements and screen shots of the transactions. These items will, of course, be very valuable when you report the fraud.
- Beware of ‘recovery rooms’: fraudsters contact victims of a previous scam and offer to help them – for a fee – recover their lost money. Often this constitutes yet another attempt at fraud.
To verify whether or not a provider of financial services and products is authorized by the FSMA or has been the subject of a warning, please visit our website.
Does the company hold an authorization? Check that the authorization has not lapsed and be on your guard against identity theft, known as ‘cloned firms’. If an entity is not listed on our website, this means it is not authorized to offer such products in Belgium.
Is the company named in a warning? In that case, you should not, under any circumstances, respond to an offer they have made to you. But please note: the list of fraudulent companies provided on the FSMA’s website is not exhaustive.
For more recommendations on how to avoid investment fraud, please consult the ‘How to recognize and avoid fraud’ page on the FSMA website. Please watch our awareness-raising videos as well (available in Dutch and French only).