The Cyprus Securities and Exchange Commission warned on Friday against widespread impersonations of officers or representatives of the regulator. The fraudsters are soliciting investors to pay fees to settle false claims.
The warning follows complaints from market participants.
The regulator stated:
For that reason, CySEC would like to remind the public that it never sends unsolicited correspondence to investors or members of the public, nor does it ever request any personal data, financial or otherwise.
The Cyprus watchdog has a responsibility of supervising the investment services market and the firms offering administrative services for regulatory violations or unethical business practices. CySEC clarified that it has ‘no authority or jurisdiction to collect fees for any purpose from individual investors, nor does it have authority to appoint anyone to do so on its behalf’.
The regulator reminded that these scams are seen often and could be a part of a bigger, sophisticated online campaign designed to defraud investors.
CySEC gave a few examples of how the fraudsters usually proceed. They claim to be CySEC officers or representatives or other real or fake bodies. The scammers usually approach investors via email which contains the name, address, official stamp and logo of CySEC and therefore looks genuine. The fraudsters often make false promises to assist investors with compensation for potential damages related to dealings they have had with sanctioned firms and in this way they obtain personal information.
The regulator added:
CySEC urges the public to remain vigilant regarding any unsolicited communication from CySEC, to refrain from giving money to anyone who claims any or all of the above, or similar.
CySEC is actively issuing warnings against fraudulent financial services firms and websites.
