The Cyprus Securities and Exchange Commission (CySEC) issued on Wednesday yet another warning that individuals or entities inappropriately introduce themselves as representatives of the CySEC or other local supervisory authorities, aiming to conduct illegal transactions.
The scammers usually contact clients of existing authorized financial service providers. They use various means of communication, but emails are the most widely used one. They use the name, logo and contact details of the CySEC and promise investors to “assist” them in receiving compensation for potential damages incurred during their cooperation with the said firms, of course in exchange for a legal fee or other expenses.
The CySEC emphasized that it never requests citizens’ personal or bank details and that they make any sort of financial transaction. The regulator noted that it does not authorize, verify, monitor, or is in any way involved in payments between natural or legal entities or any public or private agencies.
“Recent instances that came to the attention of CySEC involve correspondence from the US, Canada and the Dominican Republic in which persons with fake names and contact information, and unauthorised use of the CySEC logo, attempt to convince recipients to pay fees to participate in fake aid programs for recovery of losses they might have suffered,” the Cypriot authority noted.
This is the fifth time the Cypriot watchdog alerts of such fraudulent activities. It issued similar notices in November 2015, June 2016, October 2016, and November 2016.
The CySEC licenses, supervises, and regulates players on the local capital market, including forex and binary option brokers. Cyprus is among the main regulation destinations of choice for most brokers that seek to operate in the EU. CIF licensees are free to expand within all countries in the European Economic Area (EEA) thanks to a EU directive.