Cyprus Securities and Exchange Commission | CYSEC GUIDE: HOW TO STAY ONE STEP AHEAD OF SCAMΜERS
CYSEC GUIDE: HOW TO STAY ONE STEP AHEAD OF SCAMΜERS
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CYSEC GUIDE: HOW TO STAY ONE STEP AHEAD OF SCAMΜERS




 

Scammers are becoming increasingly savvy, and they are constantly looking for new ways to con unsuspected people out of their hard-earned money.

As technology evolves, scammers have more tools at their disposal, allowing them to contact potential victims in a multitude of ways. These include fake emails, fake websites, text messages, phone calls, online advertisements, social media, and more.

It is important to be aware of the various techniques’ scammers use, as it can help you stay one step ahead and protect yourself from being taken advantage of.

Fake emails/ telephone calls/text messages purporting to be from a legitimate source can be used to induce the unsuspecting to reveal personal or financial information or pressuring them into investing in fraudulent or worthless investing opportunities.

Read on for some of the most common channels and ways scammers might employ to contact and deceive you.
 
Fake emails and fake websites

Scams via fake emails and websites are among the most pervasive online threats.

Scammers will use phishing techniques, such as creating a fake website that appears legitimate to collect personal information, like financial or login credentials.

They’ll send messages designed to entice people to click on an attached link or open an attachment that contains a malicious code. The message may look legitimate, as it will often contain your name and other personal information, but the goal is to gain access to your information or computer system.

Therefore, be suspicious of any website that requests such sensitive information and be alerted if you receive an email from an unknown sender that contains a link or attachment.

Today, phishing schemes have become more varied, and are potentially more dangerous than before. Successful phishing messages are difficult to distinguish from real messages and are often represented as being from a legitimate company or government body, even including corporate logos and other collected identifying data.

CySEC has from, time-to-time, detected cases of fraudulent impersonation of CySEC Officers and representatives by imposters requesting information from the email recipients, or soliciting fees, in exchange for settlement of bogus compensation claims related to firms under CySEC supervision.
 
Phone Calls



Another common way that scammers may contact you is via a phone. Some calls may seem legitimate and convincing, as they’ll provide information about you or your account, which they may have obtained from a search in your social media accounts.
So, always keep in mind that you must never give out financial information or other personal details.
 
What’s more, have you ever heard of social engineering?

It’s a broad term that refers to the scams used by crooks looking to exploit a person's trust and feelings in order to obtain money directly or obtain confidential information to enable a subsequent wrongdoing. The channels used by scammers include social media, telephone, or even contact in person.

Social engineering is when fraudsters use the knowledge they have of you, against you. They use psychological manipulation of inherent emotions, biases, and weaknesses that all humans share, to trick people into trusting them and giving away sensitive information or even investing large sums of money.

Social media is the preferred channel for this, but it is not unusual for contact to be made by telephone or even in person.
 
Text Messages

With the widespread use of smartphones, scammers increasingly send text messages directly to individuals.

These text messages, as in the case of fake emails, can also include links to malicious websites or contain fake investment offers with promising returns that can be used to lure people in and steal their information or money.


 
Online Ads

Online ads can be a great way for scammers to attract potential victims and can be difficult to spot, as they are often very creative and convincing.

However, there are some red flags that can alert you to the possibility of a scam.

First and foremost, always be wary of offers or requests that seem too good to be true. If say the return on an investment is extremely high compared to the return on other similar investments, it may be a scam. It is important to remember that if something looks too good to be true, it probably is.

Words like “guaranteed returns”, “once in a lifetime opportunity”, “hurry while offer lasts”, and “it’s your chance to become rich”, should always raise a red flag.

Additionally, be suspicious of any email, website, or social media account that requests personal information, such as financial data or login credentials, or invites you to participate in very promising investments with very high returns.
 
Social Media



Scammers are constantly taking advantage of social media networks to scam unsuspected people out of their money. It is important to stay vigilant when online and be on the lookout for any signs of scams.

Scammers usually create fake accounts and message individuals directly with an offer that is too good to resist. Some will attempt to befriend you to gain access to your personal information and social media accounts. Make sure that you verify the identity of the person messaging you before accepting a friend request.

Once again, never give out personal information, financial information or information on your investor account and balance, click on unknown links, or open suspicious attachments, as they could be malicious.

Be vigilant of the friendly strangers on social media and on the internet in general, offering investment opportunities and advice.
 
Ten simple steps that you can take to protect yourself from scammers:

  1. Always be aware of offers that seem too good to be true. Don’t be afraid to ask questions. Do not proceed with an investment product or service that you cannot understand, and/or it is not explained comprehensively to you.
 
  1. The pressure to take immediate action and the urgency of an expiring offer are red flag alerts of a scam. Guaranteed or too high returns are also red flags.
 
  1. Verify with the Investment Firm that the persons contacting you is who they say they are. Bad grammar and spelling mistakes in the text are usually indicators of a scam or impersonation. If in doubt, contact the financial institution you cooperate with directly, to confirm the authenticity of the caller.
 
  1. Never give out personal information such as social security numbers, credit card numbers, or bank accounts over the phone, through text messages, emails, or online ads.
 
           
 

  1. Verify who you are speaking to. Don't provide any information to an unknown caller or sender and don’t respond to any requests for money. Do not take investment advice or opportunities offered by friendly strangers online.
             
           
 

  1. When downloading files or clicking on links, proceed with caution. Always verify the source before downloading to ensure that it comes from a legitimate source.
 
  1. Keep a record and copies of all your investment information, correspondence, and account details. In case of wrongdoing, they will be needed in order to submit your complaint or to alert the authorities.
 
  1. Make it a habit to check your monthly financial statements to ensure there are no unauthorized changes to your information, unexplained charges, money transfers you have not requested, or any financial products you own missing.
 
           
 

  1. If you believe you are a victim of a scam, it is important to contact the financial institution you cooperate with, the police, and the national regulator accordingly.
 
  1. Check the supervised entities registry of the National Regulator’s website to ensure you are about to invest with an authorised Investment Firm before you open an account or make a deposit. Then, check frequently the announcements and warnings sections on the National Regulator’s website to ensure you stay up to date with any changes that affect the market and the financial institution you cooperate with.
 
Finally, investors should remember that CySEC never sends unsolicited correspondence to investors or members of the public, nor does it ever request any personal data, financial or otherwise. Investors are strongly advised to contact CySEC to confirm the authenticity of any such communication by contacting info@cysec.gov.cy before taking any action. CySEC has issued multiple public warnings when similar cases occur, which are published on its website, such as this warning.
 
 

23 March 2023 10:02
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