The latest trend in fraud in the industry is taking a new direction, as individuals presenting themselves as Cyprus Securities and Exchange Commission (CySEC) officers are scamming the clients of a number of brokers. Customers of several brokerages which have already been fined by the U.S. Commodity Futures Trading Commission (CFTC) have been approached by unknown persons.
The individuals are claiming to be representing regulators like CySEC and the CFTC, while in fact they are closely related to a company based in the Caribbean. The firm has been using the logo and the name of CySEC to persuade individuals to pay some legal fees in exchange for assistance to money recovery.
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The target clients have accounts with companies that have already been in contact with authorities regarding investigations conducted by some global regulators. After the CFTC has imposed some fines, the investors are promised to be compensated for monetary damages incurred during their involvement with the brokers.
The representatives have been asking for a legal fee in exchange for their recovery services. An official announcement made by the CySEC on the matter states that the regulator doesn’t have any affiliation with the aforementioned entities and never sends out unsolicited offers to clients of regulated or unregulated brokerages, nor does it demand any monetary compensation.
Urging vigilance, the CySEC does not authorize, verify, monitor, or is in any way involved in payments between natural or legal entities or any public or private agencies. The regulator is publicly urging caution and recommends that individuals contacted by the fraudsters report to the regulator any communications via the email address firstname.lastname@example.org.