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Protecting Yourself against Fraud

EFG Cyprus has been made aware of scams created by organised crime groups impersonating genuine financial institutions and offering fake investment products which are not sold or marketed by these financial institutions.

Scams misusing the EFG Brand
Often Scammers/Fraudsters’ actions can be convincing and legitimate as, they appear to be sophisticated, have knowledge about your affairs, impersonate Associates, Tax Authorities, or EFG’s employees, using professional behaviour and providing credible websites with EFG’s details.

Please exercise vigilance if you have been approached to make an unsolicited investment. EFG does not cold-call potential clients to sell investments, and you will be met face-to-face by a relationship manager or financial advisor before an account is opened.

If you think you have received unsolicited contact by individuals claiming to represent EFG, or have received questionable marketing material or other documentation in the name of EFG please contact our Team using the details below:

Email: [email protected]

Stop Scams - https://www.cysec.gov.cy/investor-protection/financial-education/how-to-avoid-scams/?lang=en-GB

On the CySEC’s Financial Education Hub, you can find further information on different types of financial scams, search the CySEC warning list, the financial services register, or report a scam.

Report information or make a complaint on cybercrime issues:

CySEC “How to avoid Investment Scams”.  

You can report fraud and cybercrime to your local law enforcement/police.

If you live in Cyprus, this would be the Cyprus Police.

Investment Fraud “Red Flags”

There are many types of investment frauds. Fraudsters may get hold of your details through online channels, such as social media, scam websites (where consumers would be asked to share contact details), or by obtaining marketing and contact lists for sale.

Once fraudsters have obtained contact details, they may cold-call or send unsolicited emails offering investment opportunities. Fraudsters may deploy a combination of high-pressure tactics, claims of scarcity, principal protection or high returns to generate interest. In reality the securities are either worthless or non-existent.

Please consider the following steps to protect yourself from financial investment fraud:

  1. Have you received unsolicited contact about an investment opportunity via phone, email, or social media?
  2. Have you seen adverts on your social media feeds offering unusually high returns on investment?
  3. If you've spoken to someone, did you feel pressured to decide without time to consider the investment?
  4. Have you been offered a high return on your investment with seemingly little or no risk?
  5. Have you been told that the investment opportunity is exclusive to a small group, of which you are a part?

Fraudsters may use various tactics to appear legitimate, such as setting up cloned websites, redirecting you to the genuine EFG website, or sending you a prospectus with EFG branding and our office address. They may even make an initial payment to convince you to invest larger sums. Be aware of these signs and always verify the legitimacy of the investment.

Stop and review - before making any decisions to invest or provide personal information, take a moment to stop and think, especially if a call, letter, email, or text has come unexpectedly. EFG would never rush you to make an investment decision.

Question the offering - does the offer sound too good to be true? Are there gaps in the information you're being given? Does the contact information match up with what you find in the public domain? Always approach unsolicited contact containing urgent appeals for investment or personal information with caution. Confirm the validity of the source of the message, ensuring it comes from a trusted source by carefully examining the address itself, as well as the content within it.

CySEC register: Use the Cyprus Securities and Exchange Commission (CySEC) register to check if the company is regulated by CySEC. Be vigilant that fraudsters may misuse the details of genuine, registered firms. Clone firm frauds, where reported, are also recorded on the CySEC warning list.

Stay One – Step Ahead of Scammers and check if the Company is Regulated:

  • Check CySEC’s authorized entities list to ensure the firm is authorized by CySEC and the contact details match those of the authorized firm, before you decide to transact with it,
  • Always access CySEC’s website directly, rather than through links in emails or via the website of a firm that is offering you an investment,
  • Check CySEC’s Warning List to see if the firm is known to be operating without our authorisation. Even if a firm isn’t on the warning list, it could still be a scam – firms change names and details all the time.
  • Check CySEC’s approved domains list to make sure they are not a «clone company» and you are not in fact being transferred to an unauthorised domain.
  • Check the Warnings issued by foreign Regulators if you’re dealing with an overseas firm, or check with the Regulator in that country.

Protect yourself - If you think you've fallen for a scam, contact your bank and local police immediately. If you have been approached with a scam investment with EFG branding, please also contact EFG so that we can assist you and protect others from falling victim to the same scams.

Further information

For more information about how to invest safely and avoid investment scams please visit the website of the Cyprus Securities and Exchange Commission https://www.cysec.gov.cy/en-GB/investor-protection/financial-education/