Author: Gan Jia Ci
The government of Belgium is establishing a website that aims to educate and raise awareness of the potential risks and scams in cryptocurrency investments.
According to the public statement by FPS Economy (FPS) on 5 June, the website – “Too good to Be True” – is a collaborative effort between the Belgian Federal Public Service Economy and the Financial Services and Markets Authority.
Belgian investors have reportedly lost a total of €2.2 mln ($2.5 mln) to crypto scammers over the past year. However, this is only “just the tip of the iceberg” since the loss accounts for only cases that were reported – 4% of overall fraud cases. The website stated that while some swindlers may appear to be credible, they can fool potential investors with trickery.
With the surge in interest towards crypto investments, FPS stated that more people are being scammed. Belgian investors are estimated to lose approximately €130 mln ($152 mln) to scam crypto projects per year.
The website explained, “Collision with crypto coins can take different forms. Scammers try to trap consumers in different ways. Be extra cautious when paying online with cryptocurrencies, when investing in sports betting with crypto coins and with platforms for investments in crypto coins.”
The site also mentions other criminal activities that could be associated with tokens, such as drug trafficking and terrorism.
Hence, it warns potential investors that wish to fund a token sale to do research on the project background and refrain from revealing personal data. In addition, it advises them to always ask for explicit information and to be cautious of projects that promise large gains.
Not only that, the website also provides a website checker to help investors determine if a certain site is scammy. However, it states that the developers are “not responsible for any errors in the system”.