CySEC Cautions against Regulator Impersonators

The Cyprus Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) issued a notice on Friday warning against the rampant impersonation of the regulatory executives by fraudsters.

According to the regulator, it has received several complaints from market participants who said that persons impersonating CySEC officials and representatives are soliciting investors for fees, promising settlement of bogus compensation claims.

“For that reason, CySEC would like to remind the public that it never sends unsolicited correspondence to investors or members of the public, nor does it ever request any personal data, financial or otherwise,” the Cypriot regulator stated.

CySEC is a financial markets regulator, and its responsibility is to oversee financial services companies for any kind of regulatory violations or unethical business practices. The regulator clarifies that it 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’.

Sophisticated Campaigns

However, such frauds are not new. Additionally, CySEC issued warnings against impersonators last year in May. It further warned that these scammers often run sophisticated online campaigns to defraud investors.

The regulator detailed that the fraudsters approach investors of regulatory entities via email that looks genuine with CySEC logo, address, and fake signatures of officials. They usually make false promises to assist investors with compensation for potential damages in connection with dealings they have had with sanctioned firms and thus obtain personal information.

“CySEC urges the public to remain vigilant regarding any unsolicited communication from CySEC, to refrain from giving money to anyone who claims any or all of the above, or similar,” the regulator added.

Furthermore, the Cypriot regulator is actively flagging fraudulent financial services platforms, similar to any other European regulator.