The Cyprus Securities and Exchange Commission (“CySEC”) has once again announced that, as informed by many market participants, persons posing as CySEC officers or representatives are collecting funds from investors to assist them with potential losses from transactions with CySEC-regulated companies get compensation.
For this reason, CySEC reminds the public that institutions will never proactively send letters to investors or the public, nor will they request any personal, financial or other data.
CySEC has no authority to collect fees from individual investors for any purpose nor to appoint anyone to enforce fees on its behalf.
CySEC does not authorize, verify, monitor or in any way participate in class actions, compensation programs, payments between natural or legal entities or any public or private body.
Such cases occur frequently and may be part of a complex online campaign to defraud investors. Typically, such scams may have the following characteristics:
● Individuals claiming to be CySEC officers, CySEC’s designated representatives (eg legal advisers), other Cyprus regulators (eg Central Bank of Cyprus or the Financial Ombudsman) and/or other real or false bodies such as “Insurance Compensation Guard”.
● These scammers may contact client investors who are regulated entities under the supervision of CySEC, usually via emails that appear to be genuine – bearing CySEC’s name, address, official seal and logo and fraudulently reproduce CySEC officials ‘s signature.
● Scammers then make false promises to assist investors in obtaining compensation for potential losses from transactions with sanctioned companies, usually online trading firms that offer speculative investment products.
● Through this participation, scammers illegally obtain personal information, including phone records.
● In some cases, investors will then receive a call.