CySEC Counters Investment Scams: Warns against Impersonators and Fake Websites

<p>The Cyprus Securities and Exchange Commission (CySEC) has
issued a warning against fraudulent actors who falsely present themselves as
CySEC officers or representatives. These impersonators are reportedly actively
soliciting investors, promising to settle compensation claims related to firms
supervised by the regulator in <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> for fees.</p><p>In addition to these
fraudulent solicitations, <a href="https://www.financemagnates.com/tag/cysec/" target="_blank" rel="follow">CySEC</a> has uncovered the impersonation of its
official website, including fake domains such as cysec-regulatory.com and
www.cysecgov.com, which cunningly replicate CySEC's logo, official
announcements, images, and email addresses.</p><p>CySEC’s Battle against Impersonation</p><p>"CySEC wishes to emphasize that it never makes
contacts by telephone or sends solicited correspondence and does not request
personal data, financial or otherwise," the regulator indicated.
"<a href="https://www.financemagnates.com/terms/c/cysec/">CySEC</a> 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."</p><p>Another deceptive
website, Cysecs.group, has reportedly emerged, featuring a link to a
counterfeit list of approved investment firms in Cyprus and multiple connections
to unauthorized or fraudulent brokers. In light of these impersonation threats,
CySEC has urged the public to be vigilant when receiving unsolicited
communications that claim to be from CySEC.</p><p>Last month, the
regulator issued similar warnings against fraudsters masquerading as employees
of CySEC. According to the watchdog, scammers have reportedly been using
various channels to reach clients of CySEC-regulated entities, including email,
telephone, WhatsApp, and social media.</p><p>These deceptive
communications bear CySEC's name, address, official stamp, and logo, making
them appear legitimate. Typically, scammers reportedly extend false offers to
assist investors with compensation claims. Through these interactions, they
illicitly acquire personal information, such as proof of identity and
investment papers, enabling unauthorized withdrawals on behalf of the victims.</p><p>Influence of Social Media</p><p>Additionally, CySEC issued warnings against financial
scams perpetrated on social media platforms. As <a href="https://www.financemagnates.com/tag/saxo-bank/" target="_blank" rel="follow">Finance Magnates</a> recently revealed, social media platforms like
Telegram have become hotbeds for scammers impersonating financial institutions
and offering enticing trading signals.</p><p>CySEC, which oversees
numerous FX and CFD brokers, has not taken any direct action against financial
service scammers on Telegram and other social media channels. A representative from CySEC recently stated that the regulator <a href="https://www.financemagnates.com/forex/cysec-and-fca-are-aware-of-rife-investor-fraud-on-social-media-stopping-it-is-harder/" target="_blank" rel="follow">uses advanced social media monitoring tools</a> to detect such cases. And when they identify a
fake website, they report it to the law enforcers.</p><p>In the past, CySEC has
emphasized the growing influence of social media on investment decisions. The
regulator's survey released in February revealed that 31% of respondents rely
on finance influencers (finfluencers) for investment decisions, while 22% base
their choices on celebrity endorsements and digital promotions. </p>

This article was written by Jared Kirui at www.financemagnates.com.