Regulator Impersonators on the Rise, CySEC Warns

Regulator Impersonators on the Rise, CySEC Warns

Last Friday the Cyprus-based CySEC, on the the world’s leading FX and CFDs regulators, issued a cautionary message acting as a warning to users to stay clear of impersonators of the agency. The market has been recently flooded with all sorts of copy firms, and now a new trend has risen: the imitation of FX overseers. Moreover, at times, these imitators act out as if they were CySEC executives.

The agency had been receiving complaints from investors who were defrauded in one way or another by CySEC-posing reps. These “actors” had been soliciting traders for commissions and promising settlements as part of non-existent compensation schemes.

CySEC clarified in a statement that it holds no ‘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’.

The details provided by the regulator focus on the authentic look of these scammers. The perps were using genuine-looking emails with the CySEC logo and style of writing, to convince clients to pay some fake fee, or provide contact details, or to make the investor participate in a scheme. Moreover, these emails also included duplicated executive signatures and legit-looking contact addresses.

This is not the first time that the regulator has warned against such fraudsters. Last May, CySEC warned of sophisticatedly run online campaign run by impersonators.

Meanwhile, the regulator is still active in the perpetual flagging of unregulated forex brokers, keeping thousands of users away from financial harm.

Top Forex Brokers

BrokerCountryRatingMin. DepositWebsite
US4.99/5$50 Click for a special offerWebsite

Leave a Reply

Your email address will not be published. Required fields are marked *