The Financial Sector Conduct Authority has issued a series of warnings about scammers allegedly using the names of established financial institutions and authorised financial services providers to solicit investments and obtain personal information from members of the public.
The latest cases involve the names of JP Morgan Chase Bank, Rowan Capital, Orion Broking Solutions, Unum Capital, and Ava Trade, with social media and messaging platforms featuring prominently in the approaches.
In one case, individuals claiming to represent JP Morgan Chase Bank, Johannesburg Branch (FSP 7795), allegedly used WhatsApp and a platform called “JP Wealth Growth Study Group” to promote what were presented as discounted share investment opportunities.
JP Morgan confirmed it is not associated with the group or the individuals behind it.
Another warning relates to an individual impersonating Rowan Capital (Pty) Ltd (FSP 46000) and one of its representatives. The impersonator allegedly contacted Rowan Capital’s retail investors via WhatsApp, requesting their banking details on the pretext of facilitating withdrawals.
Rowan Capital confirmed it has no association with the impersonator.
The FSCA also warned that individuals operating under the name “Orion Broking” are allegedly claiming to be associated with Orion Broking Solutions (Pty) Ltd (FSP 27667) to solicit investments.
Orion Broking Solutions confirmed it has no connection with “Orion Broking” or the individuals associated with the activity. The FSCA said “Orion Broking” is not authorised to provide financial services.
In another case, Smart Reserve Holdings (Pty) Ltd allegedly claimed an affiliation with Unum Capital (Pty) Ltd (FSP 564) while offering to invest in crypto assets on behalf of members of the public.
Unum Capital confirmed that it has no association with Smart Reserve. The FSCA said Smart Reserve is not authorised to provide financial services.
More recently, the regulator warned about individuals allegedly offering investment opportunities on Facebook while purporting to be associated with Ava Markets Capital (Pty) Ltd, trading as Ava Trade (FSP 45984).
According to the FSCA, the individuals reportedly solicited funds from members of the public for investment purposes. Ava Trade confirmed it has no association with the individuals or the Facebook activities conducted in its name.
Common warning signs
The regulator urged members of the public to exercise caution when considering unsolicited investment or trading offers, particularly those made through social media and messaging platforms.
Investors should be alert to common warning signs, including promises of unrealistic returns, requests for upfront payments, demands for additional money before funds can be released, pressure to act urgently, and vague information about investment products. It also reminded the public to verify that a financial services provider or representative is authorised before investing or disclosing personal information.
The regulator also reminded the public to verify whether a person or institution is authorised, and to report suspicious activity through its hotline or online channels.
To check whether a person or business is authorised by the FSCA to operate as a financial services provider – and to verify their FSP number – the public can:
- Call the FSCA’s toll-free line: 0800 110 443
- Click here to search FSPs authorised under the FAIS Act.
