As financial fraud surges across South Africa, the Financial Sector Conduct Authority has issued another string of public warnings against unauthorised individuals and entities soliciting investments without proper licensing.
Digital and social media platforms are now a primary hunting ground for fraudsters. Recent data underscores the scale of the problem. A TransUnion survey found that 68% of South Africans were targeted by fraud via email, online channels, phone calls, or text messages between August and December 2024, with phishing, smishing, and fake online posts among the most common tactics.
South Africa also tops the global charts for risky financial advertising on social networks. Analysis of finance-related ads on Meta platforms found that 37.5% were scams, placing the country at the forefront of social media investment fraud exposure.
Digital banking fraud is escalating sharply. Industry figures show cases nearly doubled in 2024, rising from roughly 31 600 in 2023 to 64 000, while losses climbed from R1 billion to more than R1.4bn. Most of these crimes involve social engineering attacks, including phishing and WhatsApp scams.
Experts are now warning about AI-enabled fraud and deepfake tactics, where realistic fake videos, images, or messages are used to impersonate executives and trick victims.
The FSCA has confirmed that none of the flagged individuals or entities are licensed to provide financial services in South Africa. It emphasises that anyone offering investments or financial products must be properly authorised under financial sector laws. In most cases, the regulator could not contact the parties to verify their claims, highlighting the risks of engaging with unverified operators.
Unauthorised operator using the name Amanda Khuzwayo
The FSCA cautioned the public against an individual purporting to be Amanda Khuzwayo who claims to be associated with Prescient Investment Management (Pty) Ltd (FSP No. 612). Prescient has confirmed it is not associated with this person and does not conduct business via WhatsApp. The individual is not authorised to provide financial services.
Forex signals operator Nhlanhla Shabalala
Nhlanhla Shabalala is offering forex signals and trading services via Facebook, allegedly asking clients to deposit funds into accounts he controls under a profit-sharing arrangement. The FSCA states he is not authorised and did not respond to enquiries.
Farhad Sanadizadeh and Bitvestments
The regulator warns that Farhad Sanadizadeh and Bitvestments – trading as SAZMAND Group Ltd in the United Kingdom – are soliciting funds by promising unrealistically high Bitcoin returns via a “trading platform” with a supposedly 88% success rate. Neither the individual nor Bitvestments are licensed, and they did not respond to the FSCA’s enquiries.
EFX Trades
EFX Trades is reportedly soliciting cryptocurrency investments from the public. The FSCA confirmed it is not authorised to provide financial services and could not be reached using the contact details provided.
Maxft Bot Trading
Maxft Bot Trading appears to be misusing a fraudulent FSCA licence number (FSP 530) – originally issued to Velocity Asset Management Company (Pty) Ltd but since cancelled by the Authority. The FSCA emphasised that Maxft is not authorised and communications could not be verified.
Impersonators of the FSCA and its staff
In another alert, the FSCA warned about individuals impersonating the regulator and its employee, Felicity Mabaso, in “cloning scams” that contact victims claiming to assist with releasing investment profits. The FSCA says it is not involved in such activities and is investigating.
Sokwalisa Trading CC and Thobani Ntshangase
Sokwalisa Trading CC and Thobani Ntshangase were flagged for marketing forex trading indicators and automated trading robots via a WhatsApp group but allegedly failed to deliver promised services. Neither is authorised in South Africa, and the FSCA was unable to reach them for comment.
Red Flags for investors
The FSCA warns that unauthorised financial services are increasingly being promoted via social media, messaging apps, and online platforms – channels fraudsters know are ripe for exploitation.
The regulator urges the public to verify that any individual or entity offering investment services is properly licensed. Watch out for common red flags, including:
- Promises of unusually high or fast returns
- Investment offers made through social media or messaging apps
- Requests for upfront payments, training fees, or extra deposits
- Pressure to invest immediately
- Vague or incomplete information about the product
The FSCA stresses that offering financial products or services in South Africa requires proper authorisation, and no one should accept advice or offers from unlicensed operators.
To check whether a service provider or person is authorised, the public can:
- Call the FSCA toll-free on 0800 110 443
- Visit https://www.fsca.co.za/Fais/Search_FSP.htm to verify an FSP number
- Report suspicious activity via the Ethics and Fraud Hotline at 0800 313 626, by email at fsca@behonest.co.za, or online at behonest.co.za
