EU Cybersecurity Month is an annual awareness campaign held every October throughout Europe. Its primary objective is to elevate awareness regarding cybersecurity threats, foster proactive mitigation measures and facilitate the dissemination of best practices. The Belgian 2025 edition has turned the spotlight on investment fraud (see announcement in French and Dutch). In this article, we offer valuable insights, tips and techniques to help you discern and prevent investment fraud attempts effectively.
The evolving investment fraud landscape
Investment fraud is a sophisticated form of criminal deception where cybercriminals manipulate victims into investing money in fictitious or worthless financial products. Investment fraud specifically involves several key components that distinguish it from other types of financial crime:
- Cybercriminals create fake investment opportunities in popular financial instruments such as cryptocurrencies, forex trading or stock market investments. These products appear legitimate but are entirely fabricated.
- Cybercriminals typically promise guaranteed returns well above market rates, often 10% or higher, with “zero risk”. These unrealistic promises are designed to exploit victims’ desire for quick profits while bypassing their natural scepticism.
- Modern investment fraud operations maintain sophisticated websites, professional customer service teams and convincing documentation that mimics legitimate financial services. They may even allow small initial withdrawals to build victim confidence before preventing larger withdrawals, creating pretexts such as “tax obligations”, “administrative fees” or “security verification” requirements. Eventually, the entire platform disappears with all the invested funds.
- The fraud follows a predictable pattern where victims start with small investments (typically around EUR 250), see apparent “profits” on fake trading platforms and are then pressured to invest increasingly larger amounts.
The methodology employed by cybercriminals has become increasingly sophisticated. The cybercriminals are no longer isolated amateurs; they operate like professional corporations. After the initial attack, companies often face “recovery room” frauds, where cybercriminals pose as authorities or lawyers offering to recover lost funds for additional fees, deepening the financial wound.
Impact and risk - why does it matter?
The Belgian Centre for Cybersecurity and the Financial Services and Markets Authority (FSMA) have identified investment fraud as a primary threat vector, with fraudulent trading platforms and cryptocurrency scams accounting for approximately half of all reported fraud cases. The FSMA dashboard (in English) offers statistics and an overview of key trends related to investment fraud during the second half of 2024. FSMA data reveals that “consumers’ reports concerning cryptocurrency scams or fraudulent trading platforms account once again for about half of the reports with regard to fraud handled by the FSMA. Between July and December 2024 Belgian consumers reported having collectively lost 15,904,356.38 euros due to fraud”.
In the first half of 2025, Belgians lost a total of €15 million as a result of fake online investments, according to the latest figures from the FSMA. Individuals affected by online fraud in Belgium have experienced an average loss of €37,777 each this year. Individuals over 50 and men are more frequently targeted in online investment fraud. Data shows that approximately two-thirds (65.9%) of victims are male, and a similar proportion are over the age of 50. The method associated with the highest financial losses this year has been fraudulent online trading platforms. For companies, the financial and reputational consequences can be catastrophic.
At the end of July 2025, the FSMA also updated the list of fraudulent trading platforms in Belgium, although this list accounts for only a fraction of actual fraudulent operations.
Empower your staff through awareness
The increasing sophistication of investment fraud schemes requires companies to adopt a proactive, multi-layered defence strategy. By combining robust technical controls with comprehensive staff training and clear procedural safeguards, organizations can significantly reduce their exposure to these costly and damaging attacks.
Tips for identifying and avoiding investment fraud
Here are essential tips for recognizing and avoiding investment fraud:
- Evaluate your organization’s current exposure to investment fraud through a comprehensive review of financial processes, employee access controls and existing security measures.
- Ensure your organization has clear procedures for responding to suspected fraud attempts, including immediate contact protocols for financial institutions and law enforcement.
- Deploy systems to detect unusual financial activities, unauthorized access attempts and suspicious communication patterns across all business channels.
- Watch for critical warning signs of fraudulent investment schemes, including guaranteed returns of 10% or higher with “zero risk” claims, pressure to invest immediately and unsolicited contact through social media or dating apps. Additional red flags include requests for payments to foreign accounts or cryptocurrency transfers.
- Never invest without fully understanding the product. Take time for independent research while ignoring pressure for immediate decisions, and consult independent financial advisors for significant investments.
- If fraud is suspected, immediately stop all payments and cut contact with the suspected fraudsters, and contact your bank to report the activity.
The fundamental rule remains: If an investment opportunity seems too good to be true, it almost certainly is fraudulent!
