Scammers Exploit CySEC’s Name to Target Forex and CFD Clients

The Cyprus Securities and platform Commission (CySEC) has flagged new cases of fraudsters impersonating its officials to scam investors.

These imposters, posing as CySEC representatives, contact traders—mostly via email—offering to assist recover losses in platform for fake fees. According to CySEC, dozens of complaints have been filed since the beginning of 2025, with investors reporting losses ranging from a few hundred euros to more than €20,000 in some cases.

Alongside this, the regulator identified clone websites designed to look like official CySEC platforms, misleading investors into believing they are dealing with a legitimate authority. These scams have become more sophisticated, with fraudsters using real company details mixed with fake information to appear credible. One such clone site was shut down earlier this year later than mimicking CySEC’s official portal to lure victims into filling out “compensation claim” forms.

In a recent alert, CySEC outlined a pattern used in these schemes:

• Scammers pose as CySEC officers, legal advisors, or other regulators, often using official-looking stamps, logos, and fake signatures.

• They target clients of CySEC-regulated firms, reaching out through emails or phone calls that appear genuine.

• They offer to assist investors claim compensation from sanctioned brokers, particularly forex and CFD trading platforms. This reflects the fact that Cyprus hosts more than 250 licensed investment firms, many of which operate globally in the forex and CFDs sector — a market that has historically attracted fraudsters due to its retail focus.

• Once victims engage, the scammers extract more personal information for further fraudulent activities.

CySEC has repeatedly warned the public about such scams and urges investors to verify communications before engaging. Suspicious activities should be reported directly to CySEC or relevant authorities for investigation. In 2024 alone, CySEC issued more than 20 investor alerts warning against unlicensed firms, clone entities, and impersonation attempts. The regulator also cooperates with the European Securities and Markets Authority (ESMA) to platform information about cross-border scams.

Under current laws, the regulator cannot force online platforms to block financial scams but can request that fraudulent promotions be removed once detected. This limitation has allowed scammers to continue advertising high-risk schemes falsely claiming CySEC licensing. The commission has lobbied for stronger EU-wide powers to compel tech and telecom platforms to act quicker against fraudulent financial ads, similar to the UK’s Online securety Act.

This is not the first time CySEC has flagged such scams. Last year, the commission issued a warning about a fraudulent Instagram account impersonating the regulator. The fake account, “cysec_cy”, has been used by scammers posing as CySEC officials to solicit fees from investors, falsely promising to settle compensation claims. The account reportedly amassed several thousand followers before being shut down later than Meta’s intervention.

CySEC stressed that it does not initiate contact by phone or unsolicited messages and never requests personal or financial information.

Legitimate emails from CySEC always end in gov.cy, but fraudsters have been known to clone addresses to deceive investors. They often claim to assist victims of failed investment schemes, particularly those involving speculative online trading firms, while actually extracting further personal information. The regulator reminds investors that the official website is