Discretionary fund manager (DFM) INN8 Invest has joined the ranks of financial services providers whose names and branding have been appropriated to commit fraud.
Stanlib Wealth Management (Pty) Ltd, which owns the DFM, informed the FSCA of a fraudulent “investment” scheme on WhatsApp, the Authority said in a statement.
The scheme employs a familiar modus operandi. The fraudsters filched INN8 Invest’s name and logo and promise to double investors’ money within 24 hours. The account uses forged screenshots of people being paid after investing.
According to the statement, a “Tumelo Khoza” may be using the profile picture of one of INN8 Invest’s legitimate representatives, Lukhuxolo Mabece, when approaching investors. Stanlib has no affiliation with Khoza or “Muzi Zone”, and the image is being used without authorisation.
Neither Stanlib nor Inn8 use WhatsApp to render intermediary services.
Delos Management
The FSCA has also warned the public to act with caution when conducting financial services related business with Delos Management because it is not an authorised FSP.
The Authority said it received information that Delos offered to trade in forex on behalf of members of the public. The FSCA contacted Delos, but it declined to respond.
Check before you invest
You should always check that an entity or individual is authorised by the FSCA to provide financial products and services, including making recommendations about how to invest.
It is also important to know what category of advice the person is registered to provide, as there are instances where companies or people are registered to provide basic advice for a low-risk product and offer advice on far more complex and risky products.
You can check whether an entity or person is authorised to provide financial products and services by:
Phoning 0800 110 443 (toll-free)
Conducting an online search for an authorised financial institution by licence category: https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-Entities-Persons.aspx
Conducting an online search for a financial institution that is an authorised FSP: https://www.fsca.co.za/Fais/Search_FSP.htm
