Cyprus Mail 18 May 2020 - by Jean Christou
The Cyprus Securities and Exchange Commission’s (CySEC) said on Monday there was evidence of fraudulent representation of its officials CySEC engaging with investment services providers and their (prospective) clients.
“Individuals claiming to be CySEC officers or appointed representatives are soliciting investors for fees in exchange for settlement of bogus compensation claims related to conduct of business with a number of firms under CySEC’s supervision,” the regulatory body said.
CySEC said the public should be reminded that it never sends unsolicited correspondence to investors or members of the public, nor does it ever request any personal data, financial or otherwise.
“CySEC has no authority or jurisdiction to collect fees for any purpose from individual investors, nor does it have authority to appoint anyone to do so on its behalf,” it said.
Neither does it authorise, verify, monitor, or in any way become involved in class actions, compensation schemes, payments between natural or legal entities or any public or private agencies.
Such cases occur often and may be part of a sophisticated online campaign that seeks to defraud investors. Typically, such scams involve individuals claim to be CySEC officers, appointed representatives ie legal advisors, other Cypriot supervisory authorities such as the central bank or other bank representatives appointed by CySEC.
The scammers contact investors that are clients of regulated entities under CySEC’s supervision, often via email. These emails appear genuine when they are not – they carry the name, address, official stamp and logo of CySEC and fraudulently copy CySEC officials’ signature.
The fraudsters then make false promises to assist investors with compensation for potential damages in connection with dealings they have had with sanctioned firms (typically online trading firms offering speculative investment products).
Through this engagement, the fraudsters illegally obtain personal information including telephone records.
In some cases, investors are then called via telephone in relation to email correspondence.
CySEC said it hads sent multiple public information warnings via its website at https://www.cysec.gov.cy/en-GB/public-info/warnings/cysec/
It said a recent case involved correspondence in which an individual using the name Richard Moore attempts to convince recipients to pay legal fees to participate in fake aid programmes for recovery of losses they might have suffered. In said correspondence, there is also unauthorized use of the CySEC logo. This individual uses the electronic address richardmoore@cysecservices.com.
CySEC asks the public to stay alert and watch out for any unsolicited communication from the body.
“If you are confused why the regulator is contacting you, that is because we are likely not,” it said.
It added that people should not provide personal information. “CySEC will never ask you for money or personal financial information. Refrain from giving money to anyone who claims any or all of the above, or similar,” it added.
It also said if in doubt seek confirmation. “if you are unsure about the authenticity of any communications, contact CySEC via info@cysec.gov.cy before taking any decision/action,” it concludes.
