FSMA warns against recovery room fraud


INSIGHT
Published
Apr 25th '24
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The Financial Services and Markets Authority (FSMA) is again warning the Belgian public against recovery room fraud. 

 

Recovery room fraud is a practice whereby fraudsters offer to help victims of investment fraud to obtain compensation for their losses or to recover their lost assets.

 

Generally, the fraudsters contact their victims by phone or by e-mail. The FSMA has noted, however, that victims sometimes come into contact with the so-called ‘recovery rooms’ while conducting internet searches or via social media. When introducing themselves, fraudsters and their companies pass themselves off as law firms or accountants, and sometimes as police services or financial supervisors. The fraudsters do not hesitate to misuse the identity information of existing companies or official institutions in order to appear trustworthy.

 

The fraudsters charge a fee for their services. Victims of investment fraud must pay the fee in advance. This is a clear indication that it is a recovery room. The payment is demanded, for example, allegedly to cover certain administrative or legal costs or to pay taxes. These are purely fictitious costs, however.

 

In some other cases, fraudsters pretend to offer free services. The victim only has to give an access to her computer via a remote desktop application (such as Anydesk). In this way, fraudsters can install spywares on the consumers’ computers or access their PC-Bankings.

 

Fraudsters also sometimes ask their victims to create and activate a wallet on a cryptoplatform.

 

In all cases, fraudsters manage to steal money from consumers. Once the fraudsters have received the fees, they disappear without a trace and it is almost impossible to recover the amounts paid. The FSMA thus advises absolutely against responding to such offers.

 

Companies operating unlawfully and against which the FSMA warns the public are the following:

 

  • Apag-Audit AG (https://apag-audit.org/)
  • Claim Justice (https://claim-justice.com/)
  • Crypto Conduct Authority (https://commission-cca.com/)
  • Etoro (Torocoin – Cloned firm) (https://toroc.io/)
  • FXVC (Cloned Firm)
  • Global Get Back (http://globalgetback.com/)
  • IFP Center (https://ifp.center/; www.ifp.center)
  • NCSC (Cloned Firm)
  • Trading Center (http://trading-center.co/)
  • Ucoin Capital (https://ucoincapital.com)

 

VaxCo (www.vaxco.io; www.vaxco.co; www.vaxco.org)

 

Victims of investment fraud are often targeted twice by the same fraudsters: first the latter perpetrate investment fraud, and thereafter, recovery room fraud. The persons behind the investment fraud may also sell their victims’ contact information on to other fraudsters. Anyone who has ever been a victim of investment fraud needs to be aware that fraudsters may target their victims again or sell their personal data on to others.

 

How can you recognize and avoid recovery room fraud?

  • If you have been the victim of investment fraud, we advise you always to file a complaint with the local police.
  • If you receive an unsolicited phone call with an offer to recover the money you lost, ask the person how he or she found out that you had lost money. Reports of fraud will be shared only with the judicial authorities, and not with private companies.
  • If you are asked to pay a fee in advance, you should refuse to accept their offer and end all contact.
  • Financial supervisors such as the FSMA are not competent to recover lost money, and therefore they will never contact victims of investment fraud for such purposes.

 

Would you like to enquire more generally as to whether a transaction being proposed complies with the financial legislation? Please use the search function on the FSMA website. You can also contact the FSMA directly via the consumer contact form.

 

Source: FSMA

 

About FSMA

FSMA strives to ensure the honest and equitable treatment of financial consumers and the integrity of the financial markets. The FSMA, alongside the National Bank of Belgium (NBB), supervises the Belgian financial sector.