CySEC Flags Scammers Posing as Officials in Investor Fraud Schemes

The Cyprus Securities and Exchange Commission (CySEC) has issued another alert on scams involving criminals impersonating the regulator's staff. The warning follows a rise in cases this year where investors were contacted by people claiming to be CySEC representatives offering to recover lost funds for upfront fees.

Dozens of victims have come forward in 2025, with reported losses ranging from several hundred euros to more than €20,000. Many of the targets were clients of CySEC-regulated forex and CFD brokers, a sector that has historically attracted fraudulent activity because of its global retail reach.

According to the regulator, the tactics used include fake documentation bearing CySEC logos and signatures, as well as email addresses designed to resemble official ones. Fraudsters often present themselves as officers, legal advisors or even representatives of other supervisory bodies to appear convincing.

Clone websites have also been part of the schemes. Earlier this year, one site designed to mirror CySEC's official portal was taken down after it tricked investors into filling out "compensation claim" forms. Those forms were then exploited to collect personal details for further fraud.

CySEC stressed that it never makes unsolicited calls or messages and does not request financial or personal details from investors. It reminded the public that genuine communications always use addresses ending in gov.cy.

In its statement, the regulator acknowledged limits to its enforcement powers. While it can request that fraudulent promotions be removed, it cannot force online platforms to block scams proactively. CySEC has urged EU policymakers to strengthen regulations so that technology companies and telecom operators must act faster against fraudulent financial ads, citing the UK's Online Safety Act as a possible model.

These are not isolated cases. In 2024, CySEC issued over 20 investor alerts about unlicensed firms and impersonation attempts. One incident involved a fraudulent Instagram account that managed to attract thousands of followers before it was shut down.

The commission continues to cooperate with the European Securities and Markets Authority (ESMA) to share intelligence on cross-border scams. It is encouraging investors to report suspicious approaches directly, stressing that awareness remains the first line of defense.