An individual claiming to be a senior lawyer at the Financial Sector Conduct Authority allegedly used Commissioner Unathi Kamlana’s name in a purported attempt to convince members of the public that they may be entitled to refunds.
The incident is among eight public warnings issued recently by the FSCA covering impersonation, the misuse of legitimate businesses’ details, and financial services offered without authorisation.
According to the FSCA, members of the public complained that they had been contacted by an individual who identified himself as Lucas Ludka and claimed to be a senior lawyer in the regulator’s Investigations Department.
The individual allegedly provided members of the public with a “letter of authority” bearing Kamlana’s name. The letter claimed that the FSCA had identified grant funds that had been unlawfully used by third parties in investment schemes and that members of the public might be entitled to refunds.
The letter was distributed via WhatsApp from the number +372 5616 2589. The FSCA said it is not involved in refunds relating to grants and confirmed that Ludka is not an employee. It could not reach the impersonators using the contact details provided to it and is investigating the matter.
Legitimate FSP details allegedly misused
Two other warnings dated 13 October concern the misuse of the identities or details of authorised financial services providers.
In one case, the FSCA said Sappi Online Investment, also referred to as Sappi Online, was purporting on Telegram to be an authorised provider by using FSP number 45741.
The number belongs to Sanlam Life Insurance Ltd. According to the regulator, Sappi Online was using Telegram to solicit money from the public by promising unrealistic payouts.
Sanlam confirmed that it has no association with Sappi Online and does not conduct business through Telegram. The FSCA said Sappi Online is not authorised to provide financial services, and the regulator could not reach it using the available contact details.
The other warning concerns people allegedly impersonating Mattercap Investments (Pty) Ltd, an authorised FSP with licence number 53672.
The FSCA said the individuals were impersonating Mattercap through a Telegram group and soliciting investments from the public. Mattercap confirmed it had no association with the group’s administrators, who did not respond to the FSCA’s enquiries.
Unauthorised forex and crypto-asset offers
The other notices include warnings about entities allegedly offering forex, crypto-asset, and other investment services without authorisation.
The FSCA said Ampfa was soliciting money from the public for forex trading and a “trading robot”. Ampfa allegedly offered to trade on clients’ behalf and told members of the public that it was authorised to provide the advertised services.
The regulator said Ampfa was not authorised under any financial sector law to provide financial services and did not respond to its enquiries. The warning was issued on 22 September.
A warning issued on 29 September concerns Quilta FX Trade, also referred to as Quilta FX. The FSCA said the entity was purporting to be an authorised FSP and was offering to trade in Bitcoin and other crypto assets.
Quilta FX was not authorised to provide financial services, and the regulator was unable to contact it using the details available.
The FSCA also warned against Credora FX, which was allegedly soliciting money from the public for investment purposes through its website. The regulator said Credora FX was not authorised to provide financial services and could not be reached using the contact details provided. That warning was issued on 22 September.
Copy trading and investment solicitations
In another warning dated 29 September, the FSCA said Maivest was offering investment opportunities, copy-trading services, referral rewards, and team-based incentives through an online platform.
Maivest was not authorised to provide financial services, according to the regulator. The FSCA was also unable to reach the entity using the contact details provided to it.
A notice issued on 6 October concerns Uwen Paulsen and Geefx (Pty) Ltd.
The FSCA said it had received information that Paulsen was using Geefx to solicit money from the public for investment purposes. Neither Paulsen nor Geefx was authorised to provide financial services, and the regulator could not reach Paulsen using the contact details supplied to it.
Warning signs to look for
The FSCA said members of the public should exercise caution when considering unsolicited investment or trading offers, particularly those communicated through social media.
The regulator identified several warning signs:
- unrealistic or exaggerated returns;
- offers made through social-media platforms;
- requirements to pay for services upfront;
- demands for additional payments before an investment will be returned;
- requirements to pay for training;
- claims that payment must be made urgently; and
- vague information about the investment product.
Suspicious activity may be reported to the FSCA’s Ethics and Fraud Hotline on 0800 313 626, by email at fsca@behonest.co.za, or through www.behonest.co.za.
Check before you invest
The warnings also highlight the importance of verifying not only whether an FSP is authorised, but whether the person or entity approaching an investor is authorised to provide financial services.
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.
