Online investments

Have you come across an invitation to register on a website offering high-yield investments on the financial markets? If so, you should approach it with a high degree of caution as there are many fraudsters operating in this field. ECC can advise you on how to avoid potential pitfalls.

• What are the risks? 
• Who is authorised to offer online investments? 
• Who can you contact in the event of a dispute? 
• What precautions can you take? 

What are the risks?

There are several investment options, including:

• binary options. A binary option is a high risk investment product based on rate fluctuations in assets such as currencies, shares, raw materials and indexes, which may generate a profit but more often result in a loss. 
• investment in diamonds and other precious metals
• investment in cryptocurrency

Despite the ‘rose-coloured’ promises, there is a real risk that you will lose your entire investment.

The FSMA (the Financial Services and Markets Authority) has been warning against the serious risks of these investments for many years and continues to publish new alerts regularly. 

Websites offering binary options, investments in diamonds or cryptocurrencies are often based abroad, even outside the European Union. The postal address is rarely mentioned so that you don’t know who you are dealing with.

Who is authorised to offer online investments?

Any online broker addressing Belgian consumers must be recognised by the FSMA. If a website does not comply with the Belgian stipulations governing the provision of this type of investment services and is consequently not authorised to do so, its activities are considered illegal or even fraudulent. 

Always steer clear of unauthorised websites. FSMA strongly advises not to use certain websites.

Who can you contact in the event of problems?

If the website is authorised, you can submit your case to the FSMA, which can take measures to stop illegal practices. You could use Ombudsfin to try to reach an amicable solution for your problem. This free mediation service can negotiate directly with the other party. 

If the website has not been authorised by the FSMA, there is little hope of finding a solution. Submit your case to the FSMA and lodge a complaint with the police and with the ConsumerConnect reporting point. However, the chance of you getting your money back is very small. 

If you paid for your investment with a credit card you could dispute the payment via www.mijnkaart.be or www.macarte.be. In certain circumstances, your card issuer may refund your money. 

Tips

Observe the following preventive measures before using an online investment website.

• Check the FSMA website (list of credit institutions or investment companies) to establish whether the online broker has been authorised.
• Check that comprehensive contact data is available. 
• Scrutinise the proposed investment product. 
• Be wary of offers that seem to be too good to be true. 
• Remember that the risk of losing a significant part, or even all, of your investment is very high compared with the chance of making a sustainable profit. 
• If in doubt do not venture into this dubious territory.

Attention!
Have you previously been a victim of fraud? There is a strong likelihood that you may be contacted again, often by the same fraudsters or by others. They may pretend to offer a service to help you recover your money. Do not fall for it. Stay alert and always seek reliable information before taking any action.