Fraudsters are once again exploiting the trust of investors by posing as representatives of the Cyprus Securities and Exchange Commission (CySEC).

The regulator has issued an urgent warning after noticing an increase in cases where individuals, using fake email accounts and online profiles, pretend to be CySEC officials.

“These individuals fraudulently presenting themselves as CySEC Officers or representatives, who are soliciting investors for fees in exchange for allegedly settlement of bogus compensation claims related to firms under CySEC supervision,” the regulator mentioned in an announcement today (Wednesday).

False Compensation Promises

It is not the first time CySEC is issuing such a warning to the public. Last year, the agency alerted the public about suspicious websites and email addresses fraudulently claiming association with it.

It highlighted the sites “cysecgov.org” and “cysecgov.cc”, saying they have reportedly been created to mimic official CySEC communications, along with the email address “[email protected].”

To make their schemes appear credible, the perpetrators reportedly use email addresses that resemble official CySEC domains. However, the regulator has clarified that it never contacts individuals directly or requests fees for any purpose.

These scammers attempt to trick investors into paying fees for bogus compensation claims, creating an illusion of legitimacy while siphoning funds from unsuspecting victims. CySEC has now urged the public to stay alert and verify all communications to avoid falling prey to such fraud.

According to CySEC, the fraudsters typically contact investors through email, phone calls, or social media, claiming to offer assistance with compensation claims related to firms under CySEC’s supervision.

CySEC’s Official Guidelines

To help investors avoid falling victim to these scams, CySEC explained that it will never request personal financial details or payments from individuals.

The impersonation also cut across social media platforms. “CySEC has investigated a number of these false and misleading social media posts and has confirmed that they do not belong to entities or individuals licensed to provide investment services,” the regulator explained in a separate statement last year.

Any suspicious communication should be verified by contacting CySEC at [email protected]. Investors should check CySEC’s official warnings and updates regarding unregulated entities.

The watchdog’s genuine CySEC emails always end in "cysec.gov.cy," though fraudsters may reportedly attempt to mimic this The regulator added that its primary role is overseeing and regulating financial firms, not engaging in compensation claims or fee collection from investors.