As South Africans gear up for the festive season – a time when wallets open wider for holidays, gifts, and the new school year’s expenses – the Financial Sector Conduct Authority has again urged the public to remain alert to fraudulent financial schemes.
The regulator recently issued a series of warnings against individuals and entities posing as legitimate financial services providers or offering high-return investment opportunities without the required authorisation.
Scammers often exploit this time of year, targeting consumers eager to make quick gains or stretch their finances. With heightened spending pressures, many fall prey to online offers promising unrealistic profits, often disguised as forex, cryptocurrency, or investment plans.
The latest wave of public alerts covers a range of deceptive tactics – from impersonating licensed financial institutions and senior officials to running fraudulent Telegram and WhatsApp investment groups. According to the FSCA, these scams frequently misuse the names, logos, and FSP numbers of legitimate entities to appear credible.
Impersonation of the FSCA and its Commissioner
The FSCA warned about Duke Global Funding, which allegedly impersonated both the FSCA and its Commissioner, Unathi Kamlana.
According to the regulator, the New Zealand Financial Markets Authority alerted it to fraudulent claims that Kamlana had flagged transactions for exchange rate violations. Victims were reportedly asked to pay fees to “resolve” the supposed issue.
The FSCA confirmed that neither it nor Kamlana have any connection with the company, and they never facilitate or request payments for international transactions. The matter remains under investigation.
Telegram impersonations of authorised FSPs
The FSCA also issued warnings about Telegram groups falsely claiming ties to authorised financial services providers.
In one instance, individuals were found to be impersonating Rhynco Wealth Management and its chief executive, Rhynier Burger, using the company’s branding and logo to promote cryptocurrency investments.
Rhynco Wealth confirmed it has no affiliation with these groups and has published an official warning on its website.
Similarly, Telegram groups falsely using the identity of Quantum Wealth Management (Pty) Ltd and its director, Alicia de Klerk, were found to be promising unrealistic 48-hour investment returns.
Both Quantum Wealth and De Klerk confirmed they are not associated with the groups.
Unauthorised investment and forex entities
The regulator cautioned against several firms soliciting investments without proper authorisation.
Forex Major was flagged for offering “copy trading” services without the required licence, while Nasper Capital was found to be using the FSP number of Trade Nation Financial (Pty) Ltd to promote Bitcoin investments. In both cases, the FSCA confirmed the entities are not authorised to provide financial services in South Africa.
The FSCA further advised caution when dealing with Vixheim Trading (Pty) Ltd and Jacobus Hendrik Luttig, who were allegedly offering trading services and promising unrealistic returns. Both parties are unlicensed to offer financial services.
False association with authorised financial institutions
The FSCA has also highlighted several cases involving impersonation of legitimate financial institutions.
SPO Trading Ltd allegedly posed as a representative of FiveWest OTC Desk (Pty) Ltd, using non-existent FSP credentials to solicit investments. FiveWest confirmed it has no relationship with the entity.
Similarly, fraudsters using WhatsApp, Facebook, and fake websites have been impersonating Capitec Bank, misleading investors with promises of high share returns.
Capitec confirmed that it does not use social media to conduct business and has no connection with these impersonators.
Individuals soliciting funds under false pretences
The FSCA warned the public against Neo Nkoko, who was reportedly inviting people to invest in forex trading opportunities and then disappearing after receiving funds.
The regulator confirmed that Nkoko is not licensed to provide financial services and failed to respond to its enquiries.
The FSCA has also issued a separate warning about Daniel Karabo Tshabalala, who has been soliciting funds from members of the public for investment purposes. According to the Authority, Tshabalala uses Instagram to promote trading signals and related services.
The Authority said Tshabalala is not authorised to provide financial services and noted that he did not respond to its enquiries. The Authority urged the public to exercise caution when dealing with him.
Online platform offering unrealistic returns
A new warning has been issued regarding Fast Track Global Trade, a website claiming to provide lucrative investment opportunities. According to the FSCA, the site promotes various investment plans promising daily returns of up to 98% and charges investors a 15% service fee on their accumulated profits to process withdrawals.
The FSCA said such offers should “be treated with suspicion”, because excessively high returns are often a hallmark of fraud.
It confirmed that Fast Track Global Trade is not authorised under any financial sector law to provide financial services in South Africa.
Despite attempts to contact the operators, the FSCA received no response.
Stay alert: protect your money from investment scams
To avoid unnecessary risk, the public should never accept financial advice, assistance, or investment offers from individuals or entities not authorised by the FSCA. Legitimate financial services providers must clearly display their authorisation status in their documentation – if it’s missing, take extra caution before making any payments.
Fraudsters are on the rise, and South Africans lose millions of rands every year to scams. Some illegal operations are cleverly disguised as legitimate businesses.
The FSCA warns the public to watch out for red flags when approached with investment opportunities, including:
- Unrealistic or exaggerated returns
- Offers via social media
- Upfront payments for services
- Requests for additional payments to release your funds
- Charges for training or learning packages
- Pressure to act urgently
- Vague or unclear information about the investment product
To verify if a person or business is authorised as a financial services provider (FSP), contact the FSCA toll-free at 0800 110 443 or check online: FSCA FSP Search.
Suspicious activity can be reported to the FSCA via the Ethics and Fraud Hotline at 0800 313 626, by email at fsca@behonest.co.za, or online at www.behonest.co.za.
Agility Retirement Fund fraud
Neels Barendrecht uses provident fudn contributions to pay for normal company costs. He only pays the employee contributions once every 6 months