The Cyprus Securities and Exchange Commission (CySEC) has raised alarms about a surge in sophisticated financial scams, with fraudsters exploiting the regulator's identity and the images of celebrities to deceive investors. The regulator urges vigilance, particularly in light of recent cases where scammers have impersonated CySEC and promoted fake celebrity endorsements on social media.
Beware of CySEC Impersonation Scams
In an official statement, CySEC cautioned the public about fraudulent websites and email addresses falsely claiming to be affiliated with the regulator. These include the websites "cysecgov.org" and "cysecgov.cc" as well as the email address "supportcenter@cysecgov.org," all designed to mimic CySEC’s legitimate communications.
“CySEC would like to warn the public that these websites and emails are being used by individuals fraudulently posing as CySEC officers or representatives. They are approaching investors and demanding fees in exchange for supposedly recovering losses from investments in companies regulated by CySEC,” the regulator stated.
CySEC emphasized that it never contacts individuals by phone and does not send unsolicited messages requesting personal or financial information. The only official domain used by the regulator is cysec.gov.cy, and CySEC advises verifying the authenticity of any communication by contacting info@cysec.gov.cy.
This isn’t the first time CySEC has been impersonated by fraudsters. Late last year, the regulator uncovered a fake Instagram account with the handle cysec_cy, which had amassed over 14,000 followers and ironically posted advice on identifying fraudulent financial platforms.
In 2022, CySEC reported additional instances of individuals and websites falsely posing as its representatives, describing these scams as part of a sophisticated online campaign aimed at defrauding investors.
CySEC Warns of Increasing Financial Scams Targeting Investors
The regulator also highlighted a related scheme involving fake social media posts and online articles falsely depicting celebrities and political figures endorsing high-yield investment products.
“CySEC has investigated several of these misleading social media posts and confirmed that they are not affiliated with any entities or individuals licensed to provide investment services,” the regulator stated in a separate update.
CySEC urged the public to exercise extreme caution and to verify the legitimacy of any investment opportunity or communication that appears to be from the regulator. Investors can check if a firm is authorized to offer investment services in Cyprus by visiting the official CySEC website.
The regulator warned that engaging with unlicensed entities deprives investors of crucial protections, including access to out-of-court dispute resolution mechanisms.
“CySEC strongly advises the public to ensure that any person or entity they are dealing with is licensed to provide investment services in Cyprus,” the statement concluded.
CySEC has consistently issued warnings about fraudulent and deceptive investment schemes. For example, just two months ago, it added 17 unregulated entities to its warning list. The regulator has also ramped up its enforcement actions, conducting over 700 inspections of supervised entities in 2023 and imposing fines totaling more than $2.2 million to ensure compliance with regulatory standards and protect investors.
In 2024, CySEC imposed significant penalties, including a €740,000 fine on the operator of 1Markets for multiple violations and a €200,000 fine on IC Markets. These two penalties alone account for nearly half of all fines levied by the Cypriot regulator in 2023, setting a new record for the institution.
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