The Belgian Financial Services and Markets Agency (FSMA) has issued an alarm again about investment fraud spreading across WhatsApp groups, saying the issue has become even more severe since its first warning in August.
Regulators say they have received more complaints about scammers who posed as financial experts, tricking people into joining WhatsApp groups that promise exclusive market tips. Scammers steal the identities of banks, press and prominent business figures and make the scheme look legal.
The scam starts with Facebook and Instagram ads, promoting WhatsApp groups that members believe are receiving exclusive financial analysis and profitable investment advice. These ads use logos and names stolen from well-known banks, news services, or financial influencers.
Clicks will be added to WhatsApp groups run by individuals pretending to be famous economists or CEOs of American investment companies. The FSMA says this represents another layer of identity theft.
Once within these groups, victims face three main schemes: First of all, they are pushed to enter the lottery. Regulators see it as a truly way of collecting personal data. Second, they are encouraged to buy certain US stocks. This is clearly part of a pump-and-dump operation designed to artificially inflate stock prices. Third, the group promotes fake apps for cryptocurrency trading.
A similar scheme has been reported across Europe. Germany’s Bafin has issued its own warning about unauthorized investment offers circulating in WhatsApp groups, highlighting how widespread the issue is.
Three companies named in the latest warning
The FSMA has identified three entities operating illegally in Belgium: the Eternal Trust Group (EternalFX.com), the Quantum Decision 500 (Strategy-Quantum.com), and the STIQX (M.StratPulse.Finance). Regulators have added them to the blacklist of companies engaged in unauthorized financial activities in the country.
“The list is not exhaustive,” the FSMA said in a warning. “Go to the ‘Check Provider’ page to determine if your company is permitted to provide financial products or services. ”
The FSMA previously warned about scammers using Instagram ads in August to trap investors via WhatsApp.
WhatsApp fights platform abuse
The scale of fraud on messaging platforms has grown dramatically. WhatsApp deleted 68 million accounts earlier this year as Pig Butchering Scams spread to messaging apps including Telegram.
The FSMA ordered victims to halt all transactions and reduce contact with fraudsters, warning them that fraudsters often attempt to manipulate victims and send more money. It promptly notified the bank and urged anyone who made the payment to file a police report.
Regulators also warned of what is called recovery room. There, the scammers offered to contact victims of previous fraud and help them recover lost funds with fees. These are usually just another scam.
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