FMA statistics highlight fake crypto-investments, fraudulent trading platforms, and bogus celebrity endorsements as trends
Fraudsters are also “early adopters” and are the first to make use of new technologies and to exploit them for illegal purposes. Fake crypto-investments, fraudulent trading platforms and bogus celebrity endorsements using deepfake technology are a booming area. These are the findings of statistics compiled by the Austrian Financial Market Authority (FMA) about consumer enquiries and investor warnings in the past year. “In 2024, too many people have fallen for fraudsters’ schemes in the hope of making money quickly”, remarked the FMA’s Executive Directors Helmut Ettl and Eduard Müller. “Even if their methods are modern, they use the same old stories to lure in their victims. High returns with a low risk. Secret investment tricks that the banks won’t tell you about. And which you need to take advantage of quickly, and not asking questions. And so on and so forth: if something sounds too good to be true, then it is probably a lie,” Ettl and Müller added.
Crypto-fraud doubles
840 people have contacted the FMA’s Hotline for consumers this year – around a quarter of all enquiries (as of 20 December 2024). Enquiries relating to crypto-assets have almost doubled, with 409 enquiries (2023: 244) making up almost half of all enquiries. Contact was often established using online trading platforms, especially also in relation to apparent investments in crypto-assets, binary options and in contracts for difference (CFDs). Victims are also contacted by social media and fake postings featuring stars from radio and television, claiming to have got rich quickly thanks to secret investments. The total loss reported to the FMA to date stands at around € 15.5 million (2023: € 12.8 million) with the highest loss reported by a private person standing at € 996,109.
Record level of investor warnings
FMA warnings issued about persons and companies that are not allowed to offer and conduct business and financial services requiring a licence, have reached record levels this year. These warnings for investors are published on the FMA website as well as on the government’s Electronic Announcements and Information Platform (EVI; Elektronische Verlautbarungs- und Informationsplattform). The number of warnings issued have risen constantly in recent years – from 84 in 2022, 106 in 2023 and at least 145 in 2024. This year, the majority of such warnings related to fraudulent trading platforms, on which services are offered that are associated with financial products like binary options and contracts for difference (CFDs) as well as crypto-assets.
The FMA explains explaining about investment fraud is a focus for the FMA’s communications with consumers. The FMA’s information series Let’s talk about money primarily serves this purpose, and which also forms the basis for teaching materials for schools drawn up by Vienna University of Economics and Business’ Center for Financial Education. Further information can be found on https://redenwiruebergeld.fma.gv.at/en as well as https://www.fma.gv.at/en/spotting-financial-fraudsters/.
Journalists may address further enquiries to:
Boris Gröndahl (FMA Media Spokesperson)
Telephone: +43 (1) 249 59-6010
Mobil: +43 676 8824 9995
E-Mail: [email protected]