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The Financial Sector Conduct Authority has warned of a "sophisticated online campaign" by service providers claiming to be from the Cyprus Securities and Exchange Commission who solicit fees in exchange for settlement of fake compensation claims.
The Pretoria-based organisation says the scammers are targeting investors of online trading firms that offer speculative investment products.
The fraudulent representatives claim to the acting on behalf of Cypriot supervisory authorities, like the Central Bank of Cyprus or appointed by clients of regulated entities under Cyprus Securities and Exchange Commission (CySEC) supervision.
Contact is often made through emails which appear to be genuine and carry the name, address, official stamp and logo of CySEC and fraudulently copy CySEC officials’ signature, according to FSCA.
The scammers also promise to assist investors with compensation for potential damages in connection with dealings they have had with sanctioned firms.
"CySEC has confirmed that it will never send unsolicited correspondence to investors or members of the public, nor will it ever request any personal data, financial or otherwise."
It further states that it has 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.
