Investors have been approached and asked to pay fees in exchange for help settling compensation claims against businesses under CySEC’s supervision.
How it works
The scheme involves individuals saying they are CySEC officers and authorised representatives; or claiming to be from other Cypriot supervisory authorities, such as the Central Bank.
They contact investors who are clients of entities regulated by CySEC, typically via emails which bear the regulator’s name, address, official stamp and logo.
False promises are made to assist them in claiming compensation for potential damages in connection with dealings they have had with firms, such as online trading platforms offering speculative investment products.
In some cases, investors have also received a follow-up telephone call.
The DFSA has urged the public to remain vigilant with regard to receiving any unsolicited communication from anyone claiming to represent the CySEC.
“Under no circumstances should you send any money to such individuals in connection with any scams,” it said.
The Cyprus regulator has issued its own warnings about the scam, although the most recent alert on its website is dated 26 November 2018.
“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 authorise, 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,” the watchdog added.