CySEC Warns Public Against Scammers Impersonating Regulator Officers in Compensation Fee Scheme

The Cyprus Securities and Exchange Commission (CySEC) has released an urgent warning regarding an increasing number of cases where fraudsters fraudulently present themselves as CySEC officers or representatives. According to the financial watchdog, scammers are contacting individuals via email and fake accounts on online platforms. These fraudsters falsely claim to represent the regulatory authority and solicit upfront fees from investors in exchange for the alleged settlement of bogus compensation claims related to firms under CySEC supervision. To prevent members of the public from falling victim to these recovery and regulator impersonation schemes, CySEC emphasized the following key points: - CySEC never contacts individuals by telephone or through unsolicited correspondence, nor does it request personal, financial, or other private data. - CySEC has no legal mandate or authority to collect fees from individual investors for any purpose, nor does it authorize or appoint third parties to do so. - The regulator does not authorize, verify, monitor, or participate in any compensation schemes, class actions, or financial payments between legal entities, natural persons, or public or private organizations. - Genuine email correspondence from the commission uses addresses ending in cysec.gov.cy, though the public should remain aware that scammers may disguise addresses to imitate official channels. CySEC urges the public to remain vigilant against unsolicited communications claiming to represent the regulator and strictly advises against sending money to anyone making such claims. Investors receiving suspicious messages should refrain from taking action and verify the authenticity of the contact by emailing [email protected] directly.