CySEC warns public about false investment claims on social media

The Cyprus Securities and Exchange Commission (CySEC) on Thursday issued a warning to the public regarding false and misleading posts circulating on social media and other online platforms.

These posts, the commission said, falsely attribute investment endorsements to well-known political figures and artists, claiming they have invested in or are recommending investment products that promise high returns.

“These false and misleading postings aim to deceive and defraud the public and are unrelated to the public figures presented as investors or advisors,” the commission said in a statement.

The commission pointed out that it has thoroughly investigated several of these posts and confirmed that they do not originate from entities or individuals authorised to provide investment services in Cyprus.

CySEC also advised the public to exercise extreme caution and to ensure that anyone or any entity they engage with for investment purposes is licensed to operate in Cyprus.

“CySEC urges the public to be particularly cautious, and to ensure that any person or entity they are in contact with are licensed to provide investment services in Cyprus,” the commission stated.

The regulator also highlighted the risks involved when dealing with unlicensed entities. “In the event of a dispute with an unlicensed entity, the public will not have access to out-of-court settlement procedures,” CySEC warned.

In such cases, the commission continued, “the public will have to rely on the police and the courts to seek redress”.

To help the public verify the legitimacy of investment service providers, CySEC provided links to its official website, where individuals can check whether a company is licensed.

“The public can find out whether a company is licensed to provide investment services in Cyprus by visiting CySEC’s website,” the commission mentioned.

What is more, CySEC also recommended that individuals should ensure the contact details provided by any entity match those listed on the CySEC website.

“The public should verify that the contact details provided by the entity match the details as presented on CySEC’s website in order to ensure they are communicating with the genuine and licensed entity,” the commission concluded.