It appears that no one is safe from the misuse of their image – not even billionaire businessmen, media personalities, or high-ranking political figures, including the President of South Africa.
In one of its public warnings issued this month, the Financial Sector Conduct Authority alerted the public to a platform using deepfake videos of Patrice Motsepe, news anchor Leanne Manas, President Cyril Ramaphosa, and Deputy President Paul Mashatile, to promote questionable investment schemes.
The fake videos depict these individuals endorsing the scheme and guaranteeing lucrative returns.
In one clip, a fabricated video of Motsepe appears to promote the investment offering, while Mashatile is seen affirming that the platform is authorised, and investors will earn returns. Another video shows Ramaphosa endorsing the scheme and promising guaranteed profits.
The FSCA stated the platform is offering returns of between R13 000 and R17 000 a day on an initial investment of R4 500 – which is wholly unrealistic.
The regulatory body confirmed that the individuals behind the platform are not authorised to provide any financial services to the public.
“The individuals behind these platforms are not authorised in terms of any financial sector law to provide financial services to the public,” the FSCA said, adding that the perpetrators failed to respond to its inquiries.
WhatsApp scam impersonating Momentum Metropolitan executive
The FSCA warns the public about fraudulent WhatsApp groups impersonating senior executives from Momentum Metropolitan Holdings Limited (MMI) to promote illegitimate investment schemes.
The groups, operating under the names “Q23 Momentum Official Securities Group” and “Q923 MOSG Official Securities Group”, are falsely claiming an affiliation with Risto Ketola, MMI’s Group finance director.
According to the FSCA, the groups are part of a scheme in which individuals use WhatsApp to solicit funds from unsuspecting users by promoting so-called investment strategies.
“The administrators of the groups are fraudulently impersonating Ketola and misusing his name, image, and professional credentials to promote what is described as ‘structured guidance and risk-managed investment strategies’,” the FSCA said.
The group reportedly promises returns exceeding 160% and promotes a “check-in reward initiative” that claims to pay up to R2 000 a month to individuals who help to promote the scheme.
MMI has confirmed it has no links to the groups or the individuals behind them. The company also expressed concern about the rising number of scams on platforms such as Telegram, Facebook, and WhatsApp using its brand and executives’ names to lure investors. It strongly condemned the group’s deceptive practices.
Although the FSCA declined to comment on the specific nature of the WhatsApp group’s services, it emphasised that “the administrators of the group are not authorised under any financial sector law to provide financial services to the public”.
The FSCA said the individuals behind the platform have not responded to its enquiries and urged the public to be extremely cautious when approached with investment offers on social media or messaging apps.
Scammers impersonate Brokstock SA
Individuals posing as representatives of Brokstock SA (Pty) Ltd are using WhatsApp and Telegram to promote a fraudulent investment scheme, the FSCA has disclosed.
The FSCA identified Zibu Masotobe Sibiya and her associate, Mike Mabuyakhulu, as the individuals involved. They are operating through groups called “Brokstock Beginner/s” and have been using the company’s name without authorisation to solicit funds from the public.
According to the FSCA, the scammers are directing potential investors to deposit money into a fraudulent bank account under the name “Brockstockshares”, with FNB account number 62871907790. They are also communicating via brockstockshares@gmail.com.
“The individuals are luring clients to deposit funds into a fraudulent bank account,” the FSCA stated.
Brokstock SA, which is an authorised financial services provider (FSP number 51404), has confirmed that it has no association with the individuals or the groups impersonating the company. It emphasised that “any representations suggesting otherwise are entirely false and misleading”. It will never share its banking details via public messaging platforms such as WhatsApp or Telegram.
Tshi-Lettie Funeral Services under scrutiny
Concerns have been raised about Tshi-Lettie Funeral Services and Tombstones, a business operated by Vusy Holdings (Pty) Ltd, after it allegedly issued funeral insurance policies without being underwritten by a licensed insurer.
The FSCA launched a review following a complaint from a member of the public and found that the company was not operational at its registered address.
Although the FSCA did not comment on the specific nature of Tshi-Lettie Funeral Services’ business or the policies it offers, it said any entity providing insurance products in South Africa must be properly authorised by both the FSCA and the Prudential Authority.
“Conducting financial services business or insurance business without a licence is a criminal offence,” the FSCA stated.
The Authority confirmed that Tshi-Lettie Funeral Services is not authorised to issue insurance policies and does not hold the required licences.
Members of the public are advised to verify the licensing status of funeral insurance providers before purchasing policies to avoid financial and legal risk.
Check before you invest
Before you invest, take these precautions:
- Avoid financial advice, assistance, or investment offers from individuals or entities not authorised by the FSCA to minimize risk.
- Authorised financial services providers must clearly display their authorisation status. If not visible, conduct further investigation before proceeding with any payments.
- Exercise caution with investment or trading offers on social media or unsolicited offers.
Verify the following:
- Confirm that the entity or individual offering financial products and services is authorised by the FSCA to give investment recommendations.
- Check the registered category of advice the person can provide; some may offer advice beyond their authorised scope.
- Ensure the FSP number matches the name of the entity or individual on the FSCA database.
To verify the status and FSP number:
- Use the toll-free number: 0800 110 443.
- Conduct an online search for authorised financial institutions by license category: FSCA Regulated Entities List.
- Check if a financial institution is an authorised FSP under the FAIS Act: FSCA FSP Search.
Nedbank Securities Pty Ltd (NBSG Securities) is a leading financial services company headquartered in South Africa with registration number (1996/015589/07). As a subsidiary of Nedbank Group, one of South Africa’s leading banking groups, NBSG Securities is an authorised member of the Johannesburg Stock Exchange (JSE), a licensed financial services provider (FSP50399) and a registered credit provider (NCRCP59).