CySEC Issues Warning on Fraudulent Posts and Impersonation Scams on Legitimate Platforms

The Cyprus Securities and Exchange Commission (CySEC) issued a public alert on Friday, warning of an increase in fraudulent schemes involving impersonation and misleading posts on legitimate review platforms.

CySEC reports that scammers are now posing as its officers to deceive investors into paying fees, allegedly to recover losses from companies regulated by the commission.

These scams have been observed in fake posts on trusted sites like TrustPilot.com and Google Business, where fraudsters use bogus accounts and emails to contact investors.

Highlighting the problem, CySEC noted, “In order to help the public identify and avoid potential scams, CySEC wishes to remind the public that it never contacts individuals by telephone or sends unsolicited correspondence and does not request personal data, financial or other information.”

To combat these issues, CySEC has deployed social media monitoring tools to track posts in multiple languages in real time, identifying potentially harmful activity by financial firms and influencers. These tools allow CySEC to take preventive measures when necessary, aiming to shield investors from deceptive or fraudulent promotions.

CySEC emphasized that any authentic communications from the commission will come from email addresses ending in cysec.gov.cy. The commission advises the public to be cautious and verify any correspondence claiming to be from CySEC by contacting their official email at info@cysec.gov.cy. Additionally, the regulator stressed that it has “no authority or mandate to collect fees for any purpose from individual investors, nor does it have authority to appoint anyone to do so on its behalf.”

Moreover, CySEC clarified that it is not involved in “class actions, compensation schemes, payments between natural or legal entities, or any public or private organisations.” Regular updates on unregulated entities and impersonation attempts are published on CySEC’s website, along with an investor guide to recognizing scams.

CySEC concluded by urging the public to “remain vigilant and cautious of any unsolicited communication claiming to be from CySEC, and to refrain from sending money to anyone claiming to represent it.” This message underlines the commission’s continued efforts to protect investors from scams and unauthorized solicitations.

By fLEXI tEAM