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

Centralized exchanges are 10 times more popular than DEXs in Western Europe

Western European traders are found to prefer centralized exchanges over decentralized ones as CEX traffic outpaces DEXs by a factor of ten.

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Reviews

IUX Broker Review

IUX, recently rebranded from IUX Markets, stands as a multi-asset Forex broker recognized for its regulatory compliance across various jurisdictions.

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

<