Fake Investment Platforms in Bulgaria – How the Scams Work and What Legal Remedies Exist

In recent years, Bulgaria has become one of the countries where numerous companies have been registered in connection with fake investment platforms for trading in stocks and cryptocurrencies. According to the Ministry of Interior (MoI) and the Financial Supervision Commission (FSC), dozens of citizens have filed reports about lost funds following “investments” in websites that promise quick profits through trading on international financial markets.

According to the FSC, the typical mechanism of these platforms includes aggressive advertising on social media, often using fake images of famous individuals or logos of legitimate financial institutions. Once the user registers, a “financial advisor” contacts them and persuades the victim to invest a small amount as a “test.” After an initial fictitious “profit,” pressure follows to make larger transfers, usually to bank accounts outside the European Union.

The Financial Supervision Commission has repeatedly published official warnings about such platforms. In its public list under the section “Unlicensed Entities,” the FSC identifies dozens of websites operating without authorization under the Law on Markets in Financial Instruments (LMFI). According to the law, only companies authorized by the FSC or by a competent authority of an EU Member State may provide investment services in Bulgaria.

From a criminal law perspective, these schemes constitute fraud under Article 209 of the Criminal Code, defined as intentional deception for the purpose of obtaining an unlawful financial gain. When the crime is committed through the use of the internet or electronic means, it also falls under Articles 319a–319e of the Criminal Code, which regulate computer-related crimes.

Victims have the right to file a report with the General Directorate for Combating Organized Crime (GDBOP) – Cybercrime Department or with the respective regional directorate of the MoI. In some cases where the scheme has an international dimension, investigations are carried out jointly with Europol and Eurojust under Regulation (EU) 2016/794.

From a civil law standpoint, the recovery of funds is possible through a civil claim under Article 45 and following of the Law on Obligations and Contracts (LOC) against the individuals or legal entities that committed the act. However, in most cases, the perpetrators use offshore companies and foreign accounts, which makes actual enforcement difficult.

The FSC, the Bulgarian National Bank (BNB), and the Ministry of Interior coordinate their actions within the framework of the National Mechanism for the Protection of Financial Consumers. In 2023, the FSC introduced an early warning system for fake investment intermediaries. The Commission also regularly publishes a list of unlicensed operators.

At the European level, in June 2023, Regulation (EU) 2023/1114 (MiCA – Markets in Crypto-Assets Regulation) entered into force, introducing EU-wide standards for the licensing of crypto-asset service providers. As of 2025, any platform offering services to EU citizens will have to be registered and supervised by a competent authority, which will significantly limit fraud opportunities.

Fake investment platforms represent a modern form of classic fraud adapted to the digital environment. Although both criminal and civil law provide mechanisms for protection, the actual recovery of funds is often difficult due to the cross-border nature of these crimes.
The key to prevention lies in awareness and verification of every investment opportunity through the official registers of the FSC and the EU.

This article is for informational purposes only and does not constitute legal advice. In case of a suspected fraud or other criminal matter, it is advisable to consult a lawyer Mihail Tomov specializing in civil and criminal law, who can provide professional guidance and representation before the court.