Belgian Regulator FSMA Flags Unauthorized Firms in New Scam Warning

Belgium's Financial Services and Markets Authority (FSMA) has issued a new public warning concerning unauthorized firms targeting Belgian residents with fraudulent investment schemes. The regulator stated that fraudsters are increasingly posing as legitimate financial companies to lure victims into fake or high-risk investments.

The FSMA specifically identified North Star Management Japan and Part Capital as two entities approaching consumers without the required authorization to provide investment services. The agency urged the public to avoid engaging with these firms or transferring any funds to them.

According to the regulator, both operations display the "characteristics of boiler rooms," which involve contacting individuals without any prior request, often by phone or email, to pitch investments promising high returns. The FSMA noted that these scams have diversified from just shares to also include investment advice, managed accounts, term deposits, and crowdfunding-style products.

The FSMA described a common tactic where victims are shown early "gains" on small initial investments to build trust, only to be pressured into investing larger sums. When they later attempt to withdraw funds, they are told access is conditional on further payments for "taxes" or fees, or the investment is reported to have suddenly lost value.

The regulator reminded consumers that professional-looking websites and branding do not guarantee legitimacy, as scammers often clone the identities of licensed firms. The FSMA advised investors to use its "Check your provider" tool to verify a firm's authorization status, but also cautioned that new fraudulent operators may not yet be on its warning list.