Cyprus watchdog warns of scammers impersonating its representatives

abdelaziz Fathi

The Cyprus financial watchdog said on Friday there was evidence of fraudulent impersonation of its officials who are engaged with firms under CySEC’s supervision.

The regulator warned about persons who approach clients of suspended brands, or those under investigation, claiming that they can help them recover their capital.

The Cyprus Securities and Exchange Commission said investors should not be lulled into any correspondence ‎trying to usurp its identity to defraud them in an “advance fee scam,” in which victims are often asked to pay a fee upfront before they can receive promised compensation.

These scammers may contact clients of regulated entities, often via email which appear genuine. They carry the name, address, official stamp and logo of CySEC and fraudulently copy CySEC officials’ signature, it warns.

“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. 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,” the regulatory body said.

Scamming the scammed

While there are variations of these fraudulent tactics, CySEC advises investors to be cautious of any person that offers to help them return their money.

This activity is typical of the fraud mechanism known as a ‘recovery room.’  Although the CySEC could help investors who have lost money, the regulator doesn’t charge fees, guarantee their money back, or give special preference to anyone who files a formal complaint.

The scam artists buy and sell lists of clients of brokers under investigation so that they promise the recovery of money suspended for a fee in advance.‎

These recovery scams are defrauding the victims one more time, and according to the CySEC, investors should look for some red flags. For example, victims are contacted by individuals pretending to be CySEC officers or appointed representatives to perform investigations or other services.

These sorts of scams use a variety of lies to add credibility to their pitch, and once the victim shows interest, they send a series of official-looking documents to assure him that money is waiting in his account and can be recovered for a fee.

“Individuals claim to be CySEC officers, appointed representatives of CySEC (e.g. legal advisors), other Cypriot supervisory authorities (e.g. the Central Bank of Cyprus or the Financial Ombudsman) and/or other real or fake bodies, such as «the Insurance Indemnity Guard»,” the CySEC notes.

Read this next

Digital Assets

GBTC share is trading at 36% below bitcoin spot price

Grayscale Bitcoin Trust share has widened its discount relative to the underlying cryptocurrency held in the fund, the highest margin ever since its debut in 2013. Digital Currency Group’s flagship GBTC shares traded at a discount of 35.8% to net asset value (NAV) today.

Digital Assets

Crypto lender Nexo investigated by 8 US state regulators

State securities regulators in New York, California, Kentucky, Maryland, Oklahoma, South Carolina, Washington and Vermont are investigating crypto lender Nexo for allegedly failing to register its Earn Interest Product.

Metaverse Gaming NFT

Astar Network’s ad features 329 top brands to support Web3 in Japan

Blockchain innovation hub Astar Network is making strides in promoting the Web3 adoption worldwide. In yet another milestone, the smart contracts platform has run a national newspaper ad in Japan that set a new global record with participation from 329 blue-chip firms.

Digital Assets

Pyth Network welcomes onchain data from crypto market maker Auros

“By sharing our high-frequency trading data with a truly onchain decentralized network, we aim to foster innovation that will lead to better financial solutions for all participants.”

Digital Assets

Tokeny integrates Ownera to boost liquidity of tokenized assets

“The adoption of FinP2P will result in higher liquidity and better access to capital and assets by providing regulated firms with one secure point of connection to multiple digital asset networks across the globe.”

Digital Assets

BingX launches subsidy vouchers to cover user losses in copy trading

“With the introduction of copy trade subsidy vouchers, new users can easily try out trading strategies without incurring losses.”

Digital Assets

Talos expands sales team: Frank van Zegveld, Matt Houston, Hillary Conley

“The extensive leadership and industry expertise of these new hires will enable us to build long-lasting relationships as we continue to build out our global presence in EMEA and beyond.”

Executive Moves

FX and CFD broker Emporium Capital hires industry veteran Robert Woolfe as COO

His past experience within the FX and CFD industry includes top roles at Capital Index, London Capital Group, GKFX, ETX Capital, and IG.  “I’m delighted to be part of the Emporium Capital team and spearheading the brokerages global expansion plans”, he said about the appointment.

Retail FX

Hantec Markets wins six categories at Global Retail Forex Awards 2022

Hantec Markets has recently rebranded with a new website and a renewed growth strategy that features the #TimeToStrike hashtag to signify a time of renewed growth for the broker.

<