Fraudsters Target Investors with Fake Compensation Claims
The Cyprus Securities and Exchange Commission (CySEC) has issued a new warning about fraudsters impersonating its officials. These scammers approach investors using fake email accounts and online profiles, falsely claiming to facilitate compensation settlements. Victims are tricked into paying fees for bogus claims, with fraudsters exploiting CySEC’s reputation to appear legitimate.
Recurring Scam Tactics
This is not the first time CySEC has flagged such deceptive activities. Last year, the regulator identified fraudulent websites and email addresses attempting to mimic official CySEC communications. Notably, websites like “cysecgov.org” and “cysecgov.cc” were flagged as unauthorized, along with the email address “supportcenter@cysecgov.org.”
To enhance credibility, scammers often use email addresses closely resembling official CySEC domains. However, the regulator has never directly contacted individuals or requested fees for compensation claims. Investors are urged to verify any suspicious communication to avoid falling victim to these schemes.
How to Identify and Avoid CySEC Scams
CySEC outlined key measures to help investors recognize and avoid fraud:
- CySEC does not request personal financial details or payments from individuals.
- All official CySEC emails end with “cysec.gov.cy.”
- Social media posts claiming CySEC affiliation should be verified, as past investigations revealed fake accounts misusing the regulator’s name.
Investors should report suspicious messages by contacting CySEC at info@cysec.gov.cy. The regulator stressed that its role is limited to supervising and regulating financial entities, not handling compensation claims or collecting fees.
With scammers continuously adapting their tactics, CySEC urges the public to remain cautious and rely only on official channels for regulatory information.
More coverage: Forex News
Related reading
- Double Trouble: Scammers Now Posing as CFTC Agents to Trick Fraud Victims Again
- Cyprus Regulator Extends Suspension of Trade360’s Owner, Petros Zachariades
- Cyprus Suspends CySEC License for BDSwiss B2B Unit, Viverno, Citing Non-Compliance
- CySEC Revokes Licenses of Arumpro Capital and Greenpost Trading Europe
- Financial Markets Weekly Roundup: MetaTrader Restrictions, XTB’s New Offer, and Ripple’s Latest Milestone
- eToro Targets $3.5 Billion Valuation in US IPO Set for Q2 2025
