MFSA warns consumers over rise in crypto impersonation scams

Malta has been hit by a wave of crypto-related impersonation scams, the Malta Financial Services Authority (MFSA) has warned.

The authority said it has received reports of fraudsters across the European Union impersonating crypto-asset service providers, financial regulators, and supervisory authorities in an attempt to trick consumers into transferring their crypto-assets to accounts controlled by criminals.

The scams come as Malta moves under the European Union’s MiCA framework, which replaces national crypto rules with a single regulatory system across the bloc.

As part of the shift, a number of crypto-asset service providers in the EU have been required to obtain fresh authorisation to continue operating legally. Some firms may therefore discontinue operations, restructure their businesses, or migrate customers to licensed entities.

However, the MFSA warned that the changes have also created opportunities for criminals to exploit consumers through deceptive communications and impersonation schemes.

In July, MaltaToday investigated similar concerns surrounding DistributeX, a company which describes itself as a marketing platform for cryptocurrency projects but which industry sources said bears the hallmarks of a digital Ponzi scheme.

DistributeX is now being investigated by the Malta Competition and Consumer Affairs Authority (MCCAA) and the MFSA over potential breaches of consumer legislation. No conclusions have been reached at this stage.

The MFSA said fraudsters typically contact consumers by email, telephone, messaging applications, or social media, as well as through fake websites designed to closely resemble those of legitimate entities.

Victims have reported scammers falsely claiming to represent national regulators or EU supervisory authorities, while using forged documents, fraudulent correspondence, and copied branding to appear legitimate.

Fraudsters may also falsely tell consumers that their crypto-asset service provider is no longer authorised or licensed before creating a sense of urgency and pressuring them to transfer their assets to supposedly “safe” accounts.

In reality, the accounts are controlled by criminals.

The MFSA warned that transferring crypto-assets to such accounts could result in their permanent loss.

Therefore, the MFSA strong urged consumers to exercise caution and to:

• Not act on unsolicited requests to transfer crypto-assets or funds
• Verify all communications independently through the official website, application, or customer service channels of the relevant crypto-asset service provider
• Treat with suspicion any person claiming to represent a regulator who requests the transfer of assets or confidential information
• Check whether a crypto-asset service provider holds the necessary authorisations before engaging with it
• Avoid making transfers where there is any uncertainty and seek confirmation through official channels
• Remain vigilant against pressure tactics designed to create urgency or fear

The MFSA concluded by encouraging consumers to consult its official website to verify whether an entity is licensed and to review any further warnings issued by the authority.