Scam Alert: Fraudsters Using Fake CySEC Identities to Deceive Investors

Latest Warning from CySEC

CySEC reported a surge in fraudsters presenting themselves as regulatory representatives. These scammers send emails, make phone calls, or create fake social media accounts to convince investors to pay fees for compensation claims linked to CySEC-supervised firms.

CySEC emphasized that:

• The agency never contacts individuals by phone or sends unsolicited emails requesting financial or personal data.

• It does not authorize any entity to collect fees on its behalf.

• All official CySEC email addresses end in cysec.gov.cy, though scammers often attempt to mimic this domain.

• Investors should verify any suspicious communication by contacting CySEC at info@cysec.gov.cy.

Past Cases of CySEC Impersonation

This is not the first time CySEC has issued such warnings. In previous cases, fraudsters created fake websites, such as cysecgov.org and cysecgov.cc, to mimic CySECs official communications. These sites tricked investors into believing they were dealing with the legitimate regulator.

Additionally, a fraudulent Instagram account under the username cysec_cy gained over 14,000 followers last year. Ironically, the fake account even shared posts about identifying scam financial services.

Investors were also targeted through deceptive social media endorsements, where scammers used fabricated statements from celebrities and politicians to promote high-return investment schemes.

How to Identify and Avoid Scams

CySEC provides clear guidelines to help investors avoid fraudulent schemes:

• Verify emails: All official CySEC emails use cysec.gov.cy. Scammers may use similar domains to deceive investors.

• No direct contact: CySEC never directly contacts individuals asking for fees or personal information.

• Check CySEC‘s warnings: Investors should refer to CySEC’s website for the latest warnings about unregulated firms.

To protect investors, CySEC has ramped up regulatory actions in recent years:

• In 2023, CySEC conducted over 700 inspections on regulated entities and issued more than $2.2 million in fines.

• In 2024, the regulator imposed €740,000 in penalties on 1Markets for multiple violations and fined IC Markets €200,000.

• CySEC has added 17 unregulated firms to its warning list in the past two months alone.