CySEC Warns of Fake Regulator Scams on TrustPilot, Google Business

Scammers are taking to public review websites like
TrustPilot and Google Business to impersonate representatives of the Cyprus
Securities and Exchange Commission (CySEC), misleading investors into paying
bogus fees, the regulator warned.

The increase in these fraudulent activities has now prompted
CySEC to issue a warning, urging the public to be vigilant and cautious when
approached by supposed CySEC officials.

Fake Representatives Demand Recovery Fees

According to CySEC, recent reports reveal a surge in
incidents involving individuals falsely claiming to be CySEC officers. These
scammers contact investors, often via email or fake online accounts, and demand
fees, promising to assist in recovering investment losses from CySEC-regulated
companies.

The exploits the trust investors place in CySEC as a
regulatory body, making it a particularly dangerous scam. CySEC warns that it
does not contact individuals directly or request personal or financial
information.

The agency maintains that it has no mandate to collect fees
from investors or appoint third parties for such purposes. To combat the
growing trend of misinformation and fraudulent activities, CySEC utilizes
advanced social media listening tools.

These tools monitor posts across multiple languages in
real-time, alerting the regulator to false or misleading content posted by
investment firms or so-called “finfluencers.” This capability enables
CySEC to take swift action against harmful marketing activities, protecting
potential investors from scams.

Expect ongoing updates as this story evolves.

Scammers are taking to public review websites like
TrustPilot and Google Business to impersonate representatives of the Cyprus
Securities and Exchange Commission (CySEC), misleading investors into paying
bogus fees, the regulator warned.

The increase in these fraudulent activities has now prompted
CySEC to issue a warning, urging the public to be vigilant and cautious when
approached by supposed CySEC officials.

Fake Representatives Demand Recovery Fees

According to CySEC, recent reports reveal a surge in
incidents involving individuals falsely claiming to be CySEC officers. These
scammers contact investors, often via email or fake online accounts, and demand
fees, promising to assist in recovering investment losses from CySEC-regulated
companies.

The exploits the trust investors place in CySEC as a
regulatory body, making it a particularly dangerous scam. CySEC warns that it
does not contact individuals directly or request personal or financial
information.

The agency maintains that it has no mandate to collect fees
from investors or appoint third parties for such purposes. To combat the
growing trend of misinformation and fraudulent activities, CySEC utilizes
advanced social media listening tools.

These tools monitor posts across multiple languages in
real-time, alerting the regulator to false or misleading content posted by
investment firms or so-called “finfluencers.” This capability enables
CySEC to take swift action against harmful marketing activities, protecting
potential investors from scams.

Expect ongoing updates as this story evolves.

This post is originally published on FINANCEMAGNATES.

  • Related Posts

    SEC Fines Webull, Two Brokers-Dealers for Compliance Failures

    US-based electronic trading platform Webull is among three companies that settled with the US securities regulator regarding suspicious activity reports that did not include important and required information. Webull Financial,…

    SEC Fines Webull, Two Broker-Dealers for Compliance Failures

    US-based electronic trading platform Webull is among three companies that settled with the US securities regulator regarding suspicious activity reports that did not include important and required information. Webull Financial,…

    Leave a Reply

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

    You Missed

    Oil prices settle up 1% at 2-week high as Ukraine war intensifies

    • November 22, 2024
    Oil prices settle up 1% at 2-week high as Ukraine war intensifies

    COP29 climate summit overruns as $250 billion draft deal stalls

    • November 22, 2024
    COP29 climate summit overruns as $250 billion draft deal stalls

    SEC Fines Webull, Two Broker-Dealers for Compliance Failures

    • November 22, 2024
    SEC Fines Webull, Two Broker-Dealers for Compliance Failures

    SEC Fines Webull, Two Brokers-Dealers for Compliance Failures

    • November 22, 2024
    SEC Fines Webull, Two Brokers-Dealers for Compliance Failures

    Oil prices climb 1% to two-week high as Ukraine war intensifies

    • November 22, 2024
    Oil prices climb 1% to two-week high as Ukraine war intensifies

    Oil prices edge up to 2-week high as Ukraine war intensifies

    • November 22, 2024
    Oil prices edge up to 2-week high as Ukraine war intensifies