South Africans are once again being urged to keep their guard up as a fresh wave of suspicious investment schemes and impersonation scams sweeps across WhatsApp, Telegram, and other social media platforms.
The Financial Sector Conduct Authority has issued a string of warnings and announced a new investigation, all carrying the same underlying message: be sceptical, be slow to trust, and protect your money.
The Authority reminded the public that the threat is real and growing.
“There are many fraudsters operating scams, and the number is growing. South Africans lose millions of rands every year to fraudsters. Illegal operations are sometimes well-disguised as legitimate operations,” the FSCA said.
Below is a breakdown of the latest cases flagged by the Authority
Investigation into Imermarket over alleged advice
The FSCA confirmed it is investigating Imermarket (Pty) Ltd – an authorised FSP (FSP number 640) trading as Inversacapital – along with its director and sole key individual, Bongani Goodenough Mngadi, and its sole shareholder and director, Marios Kyriakou. Although Imermarket is authorised as an FSP, the FSCA said it is not an authorised over-the-counter derivative provider.
According to the Authority, Imermarket appears to run a platform offering Contracts for Difference (CFDs).
A CFD is a type of financial derivative: it lets traders speculate on the price movements of an underlying asset (such as shares, indices, currencies or commodities) without owning the asset itself. In a CFD, the trader and the provider agree to exchange the difference between the price when the contract is opened and the price when it is closed. Because CFDs are typically traded on margin, traders can take large positions with a relatively small deposit – but this also means risks are amplified.
The FSCA reported that clients allege Imermarket representatives provided trading advice – advice that ultimately resulted in losses. Complainants also say they were pressed to make additional deposits, and accessing or withdrawing their funds was problematic.
The investigation will examine whether Imermarket, Mngadi, and Kyriakou have breached relevant financial sector laws, including provisions of the Financial Advisory and Intermediary Services Act and the Financial Markets Act.
The FSCA emphasised that no final findings have been made and the process is still ongoing.
Impersonation of Visio Fund Management and former employee
The FSCA warns that individuals are impersonating Visio Fund Management Pty Ltd (FSP 49566) and its former employee, Tassin Meyer.
According to the FSCA, administrators of a Telegram group using the name “Visio Fund Management” and the profile @Leadership_Tassin_Meyer are promoting and soliciting investments in Bitcoin, falsely using Visio Fund’s FSP number and Meyer’s details.
Visio Fund confirmed that neither the company nor Meyer are connected to the Telegram group or its administrators.
Despite repeated attempts, the FSCA was unable to make contact with the group’s operators.
Unauthorised activity linked to Sphesihle Cele
Another notice from the Authority concerns Sphesihle Cele – also using the alias “Nhlakanipho Zungu” – who, according to the FSCA, has been using the FSP number of TSB Securities and invoking the name of Thebe Investment Corporation to promote long-term investment products.
Both entities confirmed that they have no association with Cele.
The FSCA said Cele is not authorised to provide financial advice or render financial services and has not responded to its enquiries.
NSBG J523 Investors resurfaces
The FSCA has issued another warning about NSBG J523 Investors, urging the public to be extremely cautious when engaging with the group.
According to the Authority, individuals operating under this name are running a WhatsApp-based scheme that solicits funds from members of the public in exchange for access to an alleged investment mobile application.
The FSCA said complaints indicate that NSBG typically asks members to pay about R1 000. Once payment is made, victims receive a link to download the NSBG app – but the link often does not work, and communication from the administrators usually stops thereafter.
The Authority confirmed that the individuals behind the group are not authorised to provide any financial services and have failed to respond to its enquiries.
This is not the first time the FSCA has warned the public against the entity. In a warning issued on 26 March, the FSCA cautioned against J532-NBSG Stock Discussion Group, which was purporting to be associated with Nedbank Limited and Nedgroup Private Wealth Stockbrokers (Pty) Ltd.
At the time, it had come to the Authority’s attention that individuals running J532-NBSG Stock Discussion Group were soliciting funds on Facebook and WhatsApp while unlawfully using the Nedbank’s and Nedbank Stockbrokers’ names and logos. Members of the public were reportedly enticed with a supposed beginner’s trading course and later added to WhatsApp groups branded with Nedbank logos. Within these groups, they received “trading ideas”, tips on “block trades”, and offers of a 10% discount on block-share trading.
Nedbank and Nedbank Stockbrokers denied any association with the group and confirmed that their branding was being used without permission.
The FSCA reiterated that NSBG J523 Investors is not authorised to provide any financial products or services in South Africa.
Impersonators using Prescient Investment’s name to lure investors
Another case involves individuals falsely claiming links to Prescient Investment Management (Pty) Ltd (FSP 612) and its representative, Odwa Sihlobo.
The FSCA said these individuals have been soliciting investments via WhatsApp groups using Prescient’s name and the representative’s details to appear credible.
Prescient confirmed that it and Sihlobo have no ties to these groups.
The FSCA said the impersonators are not authorised to provide any financial services and that the Authority has been unable to reach the group administrator.
Telegram scheme promises ‘10% to 15% monthly’ returns
The FSCA also spotlighted activity involving Thashen Pillay (known as Taz) and a scheme called Forex Ghost Trader.
The Authority said information received suggests that Pillay is using a Telegram group to solicit investments, help members open trading accounts linked to his own, and replicate his trades.
The promised returns of “10% to 15% per month”, the FSCA noted, are “not a realistic return”.
The regulator said neither Pillay nor Forex Ghost is authorised to provide financial services and both have failed to engage with its enquiries.
Impersonation of FSCA employee in ‘frozen funds’ scam
Perhaps the most brazen case involves a man identifying himself as Rick Steiner, whom the FSCA says is falsely claiming to be an employee of the Authority.
According to reports received, Steiner has contacted individuals claiming their names appear on a list of scam victims and that he can help release funds supposedly frozen by the FSCA – including an alleged US$67 million – in exchange for a fee.
The FSCA confirmed that Steiner is not employed by the Authority and is using its details unlawfully. It reiterated that it “will not, under any circumstances, request fees or payments from victims of financial sector crimes”.
The Authority also reminded the public that while it explores lawful mechanisms to assist victims, it is not mandated to recover funds; this falls to the relevant ombud schemes.
Before you invest, check first
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.
