FSMA Sees Sharp Rise in Public Reporting as Fraud Detection Intensifies in 2025

Belgiums financial watchdog has reported a significant increase in public engagement during 2025, as whistleblower submissions and consumer inquiries reached record levels amid ongoing concerns over unlawful financial activity.

According to data released by the Financial Services and Markets Authority (FSMA), both insiders and retail consumers are turning to the regulator more frequently to report suspected misconduct, verify financial providers, and flag potential scams. The trend reflects a growing awareness of investment fraud and greater confidence in regulatory oversight mechanisms.

Whistleblower Reports Reach Record High

In 2025, the FSMA received 306 whistleblower reports, marking a 12% increase compared with the previous year and more than double the volume recorded in 2022. The steady rise highlights the expanding role of whistleblowing as an early-warning tool for identifying breaches of financial legislation.

The regulator has operated a dedicated whistleblowing channel since 2017, designed to allow confidential and anonymous reporting of suspected violations. Submissions through this channel cover a broad range of issues, including market abuse, misleading disclosures, improper conduct by financial intermediaries, and suspected illegal investment activity.

FSMA officials have noted that an increasing number of reports have led to follow-up inquiries, and in some cases formal investigations and enforcement action. The authority views this development as a sign that both industry participants and the public are becoming more proactive in addressing financial misconduct.

Consumer Contacts Continue to Accelerate

Alongside whistleblower activity, consumer engagement with the FSMA also rose sharply. During 2025, the authority handled 4,674 consumer reports, a figure that is three times higher than levels seen in 2016 and 13% above those recorded in 2024.

Most consumer submissions related to suspected fraudulent or illegal financial offers. On average, the FSMA received more than 270 such reports per month. Importantly, regulators observed a growing number of consumers reaching out before committing funds, seeking confirmation on whether a firm or investment opportunity could be trusted.

This shift toward pre-investment verification suggests that awareness campaigns and public warnings may be influencing investor behavior, reducing the likelihood of losses before they occur.

Blocking Fraudulent Websites to Prevent Harm

The FSMA has also intensified its digital enforcement efforts. Since April 2025, the regulator has coordinated the blocking of 245 fraudulent domain names through Belgiums anti-phishing infrastructure.

These actions prevented nearly 23,000 attempted visits to scam websites, significantly limiting the exposure of retail investors to deceptive online platforms. The blocked domains were primarily linked to unauthorized investment schemes and misleading financial promotions.

Regulators have emphasized that website blocking is only one element of a broader strategy that includes public warnings, cooperation with internet service providers, and ongoing monitoring of emerging online threats.

Strengthening Accountability in the Banking Sector

Beyond fraud prevention, the FSMA introduced additional safeguards in 2025 aimed at improving accountability within the banking industry. A new professional oath framework was rolled out, covering approximately 30,000 banking employees across Belgium.

Under the system, banking professionals are subject to defined conduct standards and potential disciplinary measures, including temporary industry bans of up to three years. Applicants for certain banking roles must now obtain regulatory confirmation that they are not subject to professional restrictions.

By the end of the year, more than 500 senior managers had taken the oath directly with the FSMA, while thousands of other staff members completed the process through their respective institutions.

A Clear Shift in Regulatory Engagement

Taken together, the data from 2025 point to a clear shift in how financial risks are being identified and addressed in Belgium. Higher reporting levels, increased consumer caution, and proactive digital enforcement suggest a more engaged public and a regulator increasingly focused on early intervention.

While investment fraud remains a persistent challenge, the FSMAs figures indicate that detection mechanisms are becoming more effective—and that timely reporting is playing a growing role in limiting harm before losses escalate.