They track its registered companies first to know what kind of clients those have, then they start sending them emails claiming they are CySEC officials, then the story just begins there.
November 27, 2018 | AtoZ Markets - The Cyprus Securities and Exchange Commission (CySEC) has published a statement, in which it warned of “fraudsters” who claim to be its representatives, for scamming consumers and investors.
In the statement, the regulator noted that there are fraudsters who are pretending to be officials appointed by CySEC, and that they were assigned the task of collecting fees for settling “fake” compensation claims.
“A number of market participants have informed the Cyprus Securities and Exchange Commission (CySEC) about the fraudulent representation of CySEC officers. It has come to our repeated attention that 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.”, read the CySEC’s statement published on 26 November.
Fraudsters copy CySEC’s communication style and forge its stamp
CySEC stressed that its policy dictates not to send “unsolicited correspondence” to investors or consumers, nor to request personal information or payments.
The regulator pointed out to that investors are being scammed by such fraudulent cases everyday, “as part of a sophisticated online campaign.”.
“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 does not authorize, verify, monitor, or is in any way involved in class actions, compensation schemes, payments between natural or legal entities or any public or private agencies.”, emphasised the regulator in its statement.
The regulator cited an example of the fraudulent cases it was raising awareness for, in which it was recently made aware of a person using the name of Christos Sofroniou, who used the CySEC logo in a fake aid campaign to deceive “the recipients” to pay fees for recovering losses that “might have suffered”.
The Cypriot watchdog referred to that according to its observation with regard to such cases, fraudsters tend to target clients of CySEC-registered firms, through using email addresses that look professional to some extent, and include the CySEC’s logo and address within their tailed signatures in their emails to the victims, along with a forged stamp and signature of CySEC officials.
In such emails, as the regulator researched, those fraudsters made fake pledges that they would help investors get compensation damages they might have encountered.