The Cyprus Securities and Exchange Commission (CySEC) has launched a new social media campaign. It aims to warn investors about the dangers of online investment activities. This move is in response to a growing number of online scams.

CySEC discovered several fraudulent websites that falsely claim to be associated with the regulatory body. The campaign is intended to protect investors from falling victim to such scams.

CySEC Cautions on Online Scams

CySEC is urging investors to protect their personal information. The Commission reminds the public that it never sends unsolicited emails. CySEC also emphasizes that it will never ask for sensitive information or request money transfers.

“With the rapid growth of online investing, scammers have become increasingly deceptive in finding ways to steal personal information or trick the public into making payments to them. We are urging investors to remain vigilant when considering investing online, and to be alert to potential scams,” a spokesperson for CySEC said.

Finance Magnates reported that scams and clones pose a significant threat to the financial trading sector. A 2024 industry poll seeks insights from various financial entities to better understand and counter online fraud. This poll, conducted by FXStreet and Finance Magnates Group, aims to identify the most prevalent fraud types and address diverse concerns across the industry.

The survey found that 41.7% of traders use official regulatory websites to avoid scams, 38.1% rely on financial news and educational sites, and the remainder use social media or forums.

Recently, Telegram has updated its moderation rules to cover illegal content in private chats, allowing users to flag such content. CEO Pavel Durov stated that preventing abuse on the platform is a personal goal. This change follows Durov's detention by French authorities, leading to charges of complicity in illegal activities.

Highlighting Fraud Prevention

The campaign includes posts on several social media platforms. These include X (formerly known as Twitter), LinkedIn, Facebook, and Instagram. The posts advise investors on how to recognize fraudulent activities and avoid scams.

CySEC’s website contains additional information. Regular warnings and updates about unregulated entities and impersonations are available there. The site also features a guide for investors on how to spot scams.

“Investors should be aware that CySEC does not authorise, verify, monitor, or engage in any way in class actions, compensation schemes, payments between natural or legal entities or any public or private organisations. Moreover, CySEC urges the public to ensure that any person or entity that they are in contact with, are licensed to provide investment services in Cyprus,” the spokespersons added.