Belgium’s Financial Services and Markets Authority (FSMA) is sounding the alarm again about investment scams spreading through WhatsApp groups, saying the problem has grown more serious since its initial warning in August.

The regulator says it’s getting more complaints about fraudsters who pose as financial experts and trick people into joining WhatsApp groups that promise exclusive market tips. The scammers steal the identities of banks, news organizations, and prominent business figures to make their schemes look legitimate.

Social Media Ads Lead to Fake WhatsApp Investment Groups

The fraud starts with ads on Facebook and Instagram promoting WhatsApp groups where members supposedly get exclusive financial analysis and profitable investment advice. These ads often use stolen logos and names from well-known banks, news services or financial influencers.

People who click through get added to WhatsApp groups run by individuals pretending to be famous economists or CEOs of American investment companies. The FSMA says this represents another layer of identity theft.

Once inside these groups, victims face three main schemes. First, they’re pushed to enter lotteries, which the regulator believes is really just a way to harvest personal data. Second, they’re urged to buy specific U.S. stocks, apparently part of pump-and-dump operations designed to artificially inflate share prices. Third, the groups promote fake apps for cryptocurrency trading.

Similar schemes have been reported across Europe. Germany’s BaFin issued its own warning about unlicensed investment offers circulating in WhatsApp groups, highlighting how widespread the problem has become.

Three Firms Named in Latest Warning

The FSMA identified three entities it says are operating illegally in Belgium: Eternal Trust Group (eternalfx.com), Quantum Decision 500 (strategy-quantum.com), and STIQX (m.stratpulse.finance). The regulator added them to its blacklist of companies conducting unauthorized financial activities in the country.

“Please note, the list is not exhaustive,” the FSMA said in its warning. “In order to determine whether or not a company is authorized to offer financial products and services, please visit our ‘Check your provider’ page.”

The FSMA previously warned in August about scammers using Instagram ads to impersonate banks and trap investors through WhatsApp, a tactic Finance Magnates reported was becoming increasingly sophisticated.

WhatsApp Battles Platform Abuse

The scale of fraud on messaging platforms has grown dramatically. WhatsApp deleted 68 million accounts earlier this year as pig butchering scams spread across messaging apps including Telegram, with fraudsters using ChatGPT to craft more convincing pitches.

The FSMA told victims to immediately stop all transactions and cut contact with the fraudsters, warning that scammers often try to manipulate victims into sending more money. It urged anyone who made payments to notify their bank right away and file police reports.

The regulator also warned about so-called recovery rooms, where fraudsters contact previous scam victims and offer to help recover lost funds for a fee. These are typically just another scam.