The Cyprus Securities and Exchange Commission (CySEC) has received reports from a number of market participants regarding fraudulent representation of CySEC officers. Individuals claiming to be CySEC officers or CySEC appointed representatives are soliciting fees from investors in exchange for settlement of fake compensation claims related to conduct of business linked to firms under CySEC’s supervision.
As a matter of policy, CySEC will never send unsolicited correspondence to investors or members of the public, nor will it request any personal data, financial or otherwise. CySEC 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. It does not authorize, verify, monitor, or is in any way involved in class actions, compensation schemes, payments between natural or legal entities or any public or private agencies.
Investors continue to fall victim of this sophisticated campaign. Fraudsters will contact investors of CySEC regulated entities impersonating CySEC officials:
- Individuals claim to be CySEC officers, CySEC appointed representatives (e.g. legal advisors), other Cypriot supervisory authorities (e.g. Central Bank of Cyprus) and/or bank representatives appointed by CySEC,
- Fraudsters contact investors that are clients of regulated entities under CySEC’s supervision (often via email),
- Emails appear legitimate, containing the name, address, CySEC’s official stamp and logo and fraudulent copy of CySEC officials’ signature,
- The fraudsters then make false promises to assist investors with compensation for potential damages in connection with dealings they have had with sanctioned firms (typically online trading firms offering speculative investment products),
- Through this engagement, fraudsters illegally obtain personal information including telephone records,
- In some cases, investors are then contacted via telephone in relation to email correspondence.
CySEC has published a number of information warnings via its website, these can be found here.
The GFSC and CySEC urge the public to remain vigilant of any unsolicited communication from CySEC, to refrain from transferring funds to anyone who claims to be a CySEC officer or any of the above, or similar. Investors are strongly advised to contact CySEC to confirm the authenticity of the communication by contacting firstname.lastname@example.org before taking any decision/action.