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CySEC warns of fake recovery agents claiming to be its employees

Aug 12 2019
By
Jonathan Smith

 

The Cyprus Securities and Exchange Commission warned against fraudsters impersonating its officers who are running a recovery room scam. The regulator issued a statement on Monday saying that the scammers are pretending to recover money lost to forex brokers under CySEC supervision, soliciting investors for fees in exchange for settlement of fake compensation claims.

 

Such cases occur often and may be part of a sophisticated online campaign that is defrauding investors,” warned the Cypriot financial watchdog in its official notice. The regulated also reminded the public that it never sends unsolicited e-mails to investors, nor does it ever request any personal or financial data.

 

Here are, according to CySEC, the typical features of such a recovery room scam: Individuals claim to be officers or appointed representatives at CySEC, or of some other Cypriot authorities such as the Central Bank of Cyprus; They contact clients of brokers licensed in Cyprus, often via email, making false promises to assist investors with compensation for potential damages – of course, against a certain fee; Then, the fraudsters illegally obtain personal information including telephone records and may even call investors for additional information.

 

The regulator warns that the e-mails of these con-artists may appear genuine, carrying the name, address, official stamp and logo of CySEC and the signatures of the commission’s officials.

 

The Cypriot financial watchdog urges investors to be particularly cautious before conducting business with any investment company and always check whether it is duly licensed. Forex brokers authorized by CySEC have to abide by a number of rules, which provide significant assurance for the security of clients’ funds.

 

TAGS: recovery room scam  CYSEC  warning  fake recovery agent  regulation  Cyprus 
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