The Malta Financial Services Authority (MFSA) is informing the public about an increase in fraudulent schemes targeting crypto-asset holders during the transition to the European Union's Markets in Crypto-Assets Regulation (MiCA).

The Authority has become aware of reports across the European Union of fraudsters impersonating crypto-asset service providers, financial regulators, and supervisory authorities in an attempt to mislead consumers into transferring their crypto-assets to accounts controlled by criminals.

How the Scam Operates

Fraudsters may contact consumers by email, telephone, messaging applications, social media platforms, or through fake websites that closely resemble those of legitimate entities. In some cases, scammers have been reported to:

• Falsely claim to represent national regulators or European supervisory authorities.
• Use forged documents, fraudulent correspondence, and copied branding to appear legitimate.
• Inform consumers that their crypto-asset service provider is no longer authorised or licensed.
• Urge consumers to withdraw or transfer their crypto-assets to supposedly "safe" or "regulated" accounts.
• Create a false sense of urgency to pressure consumers into acting quickly.

Consumers should be aware that transfers made to such accounts may result in the permanent loss of their assets.

Background

Following the implementation of MiCA, crypto-asset service providers operating within the European Union are required to obtain the necessary authorisations to continue providing services legally. During this transition period, some firms may discontinue operations, restructure their businesses, or migrate customers to licensed entities.

The resulting uncertainty may create opportunities for bad actors to exploit consumers through deceptive communications and impersonation schemes.

The MFSA strongly urges consumers to exercise caution and to:

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

Consumers are encouraged to consult the MFSA's official website to verify whether an entity is licensed and to review any warnings issued by the Authority.