Investors Worldwide at Risk in Regulator Impersonation Scam

A recent surge in telephone fraud has emerged, with scammers posing as representatives of the Capital Market Commission. As reported by Cyprus Police News, these impostors are proficient in Greek, employing tactics to coerce individuals into revealing personal information or granting access to their computers.

This fraudulent scheme has prompted law enforcement to issue a stern warning, urging the public to exercise utmost vigilance and avoid engaging with these deceptive calls. Impersonators typically begin by claiming affiliation with the Capital Market Commission, suggesting issues within the victim's bank account to extract sensitive details or access their devices.

Authorities stress the significance of identifying signs of this fraudulent activity, emphasizing that the Capital Market Commission does not initiate unsolicited calls demanding personal information or computer access.

A statement shared by the Cyprus Securities and Exchange Commission (CySEC) via Twitter advises users to verify the caller's identity and avoid disclosing personal information or granting device access unless completely certain of the caller's legitimacy.

In October, CySEC issued a public alert regarding a fraudulent Instagram account posing as the regulator. This account, named “cysec_cy” with over 14,100 followers, falsely offers dispute resolution services while impersonating CySEC employees, aiming to defraud unsuspecting individuals. This account misleadingly directs users to CySEC's genuine website but features a deceptive email address resembling the regulator's domain.

Beyond CySEC's actions, various European regulators, including those in Italy, Spain, the UK, and Australia, publicly expose and flag fraudulent financial services platforms and cloned brokerages.

Most recently, New Zealand's Financial Market Authority (FMA) raised concerns about CySEC imposters targeting local investors. FMA's warning urged New Zealanders to remain highly cautious against fraudulent communications pretending to originate from CySEC.

FMA's warning highlighted six fake CySEC websites and an email address utilized by fraudsters, closely mimicking CySEC's official domain. Cyprus' securities regulator reiterates its non-collection of fees from individuals, emphasizing its role in regulating and taking enforcement actions against non-compliant entities.