The Belgian Federal Public Service Economy and Financial Services & Market Authority have teamed up to create a website named ‘Too Good To Be True’ to warn investors about cryptocurrency scams, in order to protect its citizens amid a rising tide of scams as the popularity of cryptocurrency climbs.
There is a warning on the website that anyone can create a cryptocurrency, and that some people create cryptocurrencies for drug trafficking, scams, and terrorism. In reality, it is rare that an actual cryptocurrency is created solely for criminal purposes, but it is not out of the realm of possibility.
The real threat the website warns about is investment scams, where companies offer big profits and then run away with the invested coins. That’s where the name of the site is derived from: if an investment scheme seems too good to be true, it should be avoided, since it probably isn’t true.
In general, the website recommends never sharing personal information to avoid identity theft, to know who you are dealing with and get clear and understandable information from them, and to be wary of promises of high profits. Even though cryptocurrency prices have gone up tremendously in the long term, no honest person would ever guarantee profits since the markets are volatile.
The website has an integrated tool where the legitimacy of cryptocurrency websites can be verified, but the developers say they are not responsible for any errors. It would take an entire task force to verify the trustworthiness of every cryptocurrency website, so it seems unlikely that this tool is 100% accurate. In order to operate in Belgium, a cryptocurrency company must have a license, so any company that does not have a license would be considered fraudulent by this checking tool even if the rest of the world considers the company legitimate.
There is a section of the website which archives real-life stories about cryptocurrency fraud, and users of the site can submit their own stories. Stories range from getting involved in pyramid schemes, purchasing mining equipment that never showed up, fraudulent cryptocurrency exchanges, cryptocurrency wallets being hacked, and being scammed when purchasing cryptocurrency.
The ‘Too Good To Be True’ website will help educate citizens of Belgium about cryptocurrency crime, hopefully resulting in fewer victims and a healthier cryptocurrency ecosystem.
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