CySEC Pulls Certification Registers as Scammers Exploit Licensing Details

The Cyprus Securities and Exchange Commission (CySEC) has suspended public access to its certification registers after uncovering that scammers were using the personal details of certified professionals to defraud investors. The regulator said the move aims to protect the integrity of the capital market and safeguard the public from impersonation schemes.

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“To safeguard investor protection and ensure the smooth functioning of the capital market, CySEC announces that it has temporarily suspended the publication of the Certification Registers and the announcements of certification examination results on its website,” the watchdog informed.

Fraudsters Exploiting Certification Data

CySEC revealed that certain individuals had unlawfully used names and details listed in its Certification Registers or in the published results of certification exams. These fraudulent actors allegedly exploited the data to pose as legitimate professionals and mislead unsuspecting members of the public.

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The regulator emphasized that certification remains a necessary condition for employment in firms supervised by CySEC, as set out under the Directive for the Certification of Persons and the Certification Registers.

CySEC urged investors to exercise extra caution when approached by individuals offering investment opportunities. It advised the public to verify both the person’s identity and the company they claim to represent by consulting CySEC’s official website or other recognized supervisory bodies.

The regulator also reminded investors never to share personal or financial details or make payments without confirming the legitimacy of the entity involved.

Protecting Investor Confidence

In a statement, CySEC said the suspension is temporary and intended to ensure a secure environment for investors and certified professionals alike. “The Commission’s primary objective is to uphold investor protection and the smooth functioning of the capital market,” the announcement read.

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CySEC invited individuals seeking clarification or information to contact its Certifications Department directly. The regulator’s swift action underscores growing concerns across European financial markets over data misuse and impersonation scams targeting retail investors.

Recently, the Chair of the Cyprus Securities and Exchange Commission, Dr. Giorgos Theocharidis, warned that artificial intelligence tools and social media influencers promoting questionable investment schemes pose growing risks to investors.

In an interview with Forbes Cyprus, Theocharidis said the regulator is grappling with how to curb the influence of unauthorized individuals who market financial products online, often showcasing lavish lifestyles and promising quick profits without holding proper licenses.

“We constantly remind investors that if something sounds too good to be true, then it probably isn't,” Theocharidis said during the interview, describing the phenomenon of so-called “fin-fluencers” targeting young investors as particularly concerning.

Theocharidis, who has led CySEC since 2021, emphasized that the trend of so-called “fin-fluencers” targeting young and inexperienced investors is particularly troubling, reiterating the need for caution with offers that appear “too good to be true.”