Are you trading with a Cypriot broker? Beware of scammers impersonating CySEC

Cyprus Securities and Exchange Commission (CySEC) has issued a statement in which it warns against reported cases of impersonating officials or representatives of the regulator's representatives. This is not the first time scammers have used this method.

They trick investors into paying fees

What is the fraud? A scammer posing as a representative of a Cypriot regulator contacts the trader claiming that a fee must be paid to satisfy claims arising from his investment or to help recover funds from a broker who turned out to be a fraud (this may also be another pretext).

The CySEC statement reads:

For this reason, CySEC would like to remind the public that it never calls or sends unsolicited correspondence to investors or members of the public, and never requests any personal, financial or other information.

The Cypriot watchdog stressed that the fraudulent impersonation is part of a "sophisticated online campaign to defraud investors".

The regulator also emphasized that fraudsters usually pose as CySEC officers or representatives, sometimes using real and sometimes made-up names and surnames. They usually contact investors via email which includes the name, address, official CySEC seal and logo, making it appear genuine. Fraudsters often make false promises to help investors obtain compensation for potential damages related to dealing with sanctioned companies and thus obtain personal information.

The regulator in its communiqué adds:

CySEC urges the public to be vigilant about any news that purports to be from CySEC and to refrain from donating money to the regulator.