BaFin publicly warns against providers without permission. However, a lack of warning is not proof of seriousness. How alerts and the company database can be used sensibly.
The Federal Financial Supervisory Authority (BaFin) regularly publishes warnings about providers who are suspected of conducting financial transactions without the necessary permission. For many investors, these reports are the first point of contact - before investing or after doubts have arisen.
In order for the warnings to really help, it is important to know what they say and what their limits are. A common misunderstanding is: Anyone who is not on the warning list is reputable. That is not the case.
Background: the requirement to obtain permission for financial transactions
Anyone who conducts commercial banking or provides financial services in Germany generally requires permission from the supervisory authority. This results from the Banking Act (KWG) and other supervisory laws. The requirement to obtain permission can also apply to providers based abroad if they specifically target customers in Germany via the Internet.
If BaFin has indications that a provider is operating without permission, it can intervene and inform the public. The warning message is one such instrument of consumer protection.
What a warning message says
A warning message essentially means: According to the findings of the supervisory authority, there is a suspicion that the provider mentioned is offering transactions that require authorization without authorization. The report often names the affected websites and points out that the provider is not under the supervision of BaFin.
The warning is not a judicial finding of fraud and does not determine civil claims by individual investors. But it is a signal that should be taken seriously. Anyone who has deposited money with such a provider should not make any further payments and clarify their own situation promptly.
No warning is not proof of seriousness
BaFin can only warn about providers that it has become aware of - often only through information from victims. Dubious platforms emerge quickly, change names and Internet addresses and often disappear again before a report appears. The fact that there is no warning about a provider says nothing about its seriousness.
The reverse check is more meaningful: Does the provider have a permit? For this purpose, BaFin maintains a publicly accessible company database in which approved and registered companies are listed. For providers from abroad, it may also be useful to take a look at the publications of the local supervisory authority.
Impersonation: when fraudsters impersonate approved companies
A particularly treacherous variant are so-called clone websites. Perpetrators use the name, registration number or appearance of an actually licensed company. Anyone who looks up the name in the company database will find an entry - and feel wrongly safe. BaFin regularly refers to such cases of identity misuse in its reports.
Only a precise comparison can protect you here:
- Does the internet address exactly match that of the approved company?
- Do the address, telephone number and email address match the official information?
- Did the contact come about unsolicited, for example via social media, messenger or a phone call?
- Is the recipient account in the name of the company itself – or of a third party, possibly abroad?
- Will time pressure build up or will you be asked to install remote maintenance software?
If in doubt, it helps to contact the approved company directly using their officially known contact details and ask whether the offer actually comes from there.
What a warning means for those injured
BaFin does not enforce the claims of individual investors and does not recover any money. Criminal prosecution lies with the police and public prosecutor's office, and the enforcement of civil law claims lies with those affected themselves. A warning message can be a helpful component in this regard: the lack of the necessary permission can be important for claims for damages against those responsible, and the date of publication can play a role in determining what the payment service providers involved were able to know. What conclusions can be drawn from this depends on the individual case.
Conclusion
BaFin warning messages are a valuable early warning system, but not a complete register of dubious providers. If there is a warning, restraint is required. If there is none, nothing is proven. It is more reliable to check whether a provider has a license - combined with a close look at whether you are really dealing with the approved company.
Frequently asked questions
No. BaFin can only warn about providers of which it is aware, and many dubious platforms are only active for a short time. What is more meaningful is whether the provider is listed as approved in BaFin's corporate database or by a foreign supervisory authority.
Do not make any further payments, including for any alleged fees or taxes, prior to a withdrawal. Back up all documents and communications and file a criminal complaint. It can then be checked whether and against whom there are civil claims.
BaFin is a supervisory authority and does not enforce individual claims. It receives information and can take action against unauthorized transactions. In order to reclaim funds, those affected are dependent on civil legal proceedings and, if necessary, on the results of criminal proceedings.
