The Belgian government has launched a new website called “Too Good to Be True” to help investors understand what are some common types of crypto scams and to explain what precautions they should take to avoid being scammed.
The site is run by the Belgian Federal Public Service Economy and the Financial Services and Markets Authority. Saying crypto assets “are the hype of the year,” the site warns that because they are extremely easy to develop, these tokens may be used for illegitimate purposes, including “scams, drug trafficking, terrorism or any other criminal activity.”
The FPS noted the sharp spike in interest towards crypto investments, which they said “causes a lot more people to be scammed.” According to the statement, Belgian investors reported the loss of €2.2 mln ($2.5 mln) in crypto scams to the FPS last year. The FPS said that this is “just the tip of the iceberg” as only 4 percent of crypto fraud cases are reported. Per their estimations, investors in Belgium lose about €130 mln ($152 mln) to scam crypto projects per year.
They offer a portal with which users can report instances of scammy companies, in addition to a scanner that screens websites for complaints of fraud. The site claims that “the absence of [a] warning about a company” after checking does not necessarily mean that the crypto project has a “valid license,” and that it may require further consideration. The site says that companies will sometimes change their names in order to avoid appearing on lists of fraudulent or scammy projects.
The website offers testimonials, video testimonials, safe space to report crypto related frauds, a very useful FAQs for beginners and scam victims, a tool to check a particular website for fraud, a weekly newsletter to stay up to date with the regulation and scam news in the country and much more.