CySEC Imposters in New Zealand? FMA Issues Warning

<p dir="ltr">New Zealand’s Financial Market Authority (FMA) is concerned with the rampant impersonation of its Cypriot counterpart and has issued a public warning against fraudsters contacting investors in the country. It came as some of the imposters of the Cyprus regulator contacted scam victims over emails and phones.</p><p dir="ltr">“We recommend caution if contacted by anyone claiming to be from the Cypress Securities Exchange Commission (CySEC),” the <a href="https://www.financemagnates.com/tag/fma/">Kiwi regulator</a> stated in the warning issued today (Wednesday).</p><p dir="ltr">CySEC’s Repeated Warnings</p><p dir="ltr">Cyprus is one of the favorite jurisdictions of financial services providers, as regulated companies in the island can passport their license to offer services in the wider European Economic Area (EEA). Brokers are attracted to the Mediterranean island because of its less stringent rules when compared to other EU countries.</p><p dir="ltr">“CySEC has warned that its website has been copied and scammers are impersonating its officials in a complex “recovery” scam,” the FMA stated. “Previous scam victims are being contacted by <a href="https://www.financemagnates.com/institutional-forex/cysec-warns-against-impersonating-officers-fake-websites/">CySEC impersonators</a> via emails and phone, then asked to pay fees and/or purchase cryptocurrency under the guise of recovering lost funds.”</p><p dir="ltr">Indeed, CySEC has flagged many copycat websites over the years, which were impersonating the regulator and contacting fraud victims, sometimes even brokers. They have also cloned the <a href="https://www.financemagnates.com/tag/cysec/">CySEC </a>website to fake legitimacy.</p><p dir="ltr">CySEC also repeatedly clarified that it has no authority or jurisdiction to collect fees from individuals. It only regulates and takes enforcement action against companies in case of any compliance violations, and that too through proper channels.</p><p dir="ltr">CySEC Imposters Are Going Global</p><p dir="ltr">The latest FMA warning mentioned six fake CySEC websites and an email address used by the fraudsters. The domain of these fake websites is very close to the genuine website of CySEC and can be tough to differentiate sometimes.</p><p dir="ltr">Most recently, CySEC flagged a <a href="https://www.financemagnates.com/forex/cysec-finds-instagram-impersonator-issues-public-warning/">fake Instagram account</a> impersonating the regulator. It has 14.2K followers and is offering fake services for “dispute for loss with your broker.” Meanwhile, the CySEC has also initiated a <a href="https://www.financemagnates.com/forex/news-nuggets-12-october-cysec-launches-instagram-openai-to-introduce-updates-for-devs/">campaign on Instagram</a> to boost financial literacy.</p>

This article was written by Arnab Shome at www.financemagnates.com.