Cyprus regulator highlights risk of unlicensed online platforms

The Cyprus Securities and Exchange Commission (CySEC) has warned investors about several websites that are not authorised to provide investment services or perform investment activities in Cyprus.

The regulator stated that these websites do not belong to any entity licensed to operate here.

The websites in question are deltatradingcorp.com, vyntor.net, phronimoss.com, alchemy-investments.ltd, axiance.com, superfitmax.com, fusion4marketsltd.com, anforanav.com, bm-holdings.co, lyfelete.com, and novustrade.net.

Moreover, the commission advised investors to exercise caution and verify whether a company is authorised before engaging in any transactions.

“CySEC urges investors to consult its website before conducting business with investment firms, in order to ascertain the entities, which are licensed to provide investment services or investment activities,” the commission said.

Fraudulent emails claiming to be officers

Meanwhile, in a separate announcement, CySEC warned investors and licensed entities about fraudulent electronic communications claiming to come from the regulator.

The commission said these emails purport to be from CySEC officers and aim to extract money from recipients.

CySEC urged licensed entities and investors to remain vigilant and report any suspicious communications immediately.

“Be aware of the dissemination of false communications and report them immediately,” the commission said.

The regulator pointed out that the fake messages often use the name of CySEC with the sign-off or signature of a non-existent person falsely presented as a CySEC employee.

They are also presented as official communications and offer services such as the alleged release of funds via an identification key upon payment of a fee, or the alleged acquisition of a trading certificate to legalise transactions or activities in the markets, with associated costs.

The fraudulent messages frequently request the advance payment of large sums under the pretext of compliance with regulatory requirements.

CySEC reminded the public that it never requests or accepts payments or fees from individual investors for the issuance of certificates or the release of funds.

The regulator also said it does not authorise any third party to carry out such actions on its behalf.

“Genuine CySEC email addresses end with @cysec.gov.cy,” the commission said.

The public is urged to exercise particular caution, avoid disclosing personal or financial information, and refrain from making any payments to persons claiming to act on behalf of CySEC.

Investors are also advised to immediately report any suspicious communications by using the appropriate link.

“This kind of fraud is becoming increasingly common, so it is vital that investors think twice about the communications they are receiving before they proceed to any transaction,” CySEC concluded.