Unauthorised operators masquerade as top firms to promise unrealistic returns

The Financial Sector Conduct Authority has issued a series of alerts to the public about a growing number of unauthorised financial schemes and scams operating through social media platforms, particularly Telegram, WhatsApp, Facebook, and Instagram.

These fraudulent actors are impersonating legitimate financial institutions and representatives, promising unrealistic returns to unsuspecting investors.

Impersonation of FirstRand CFO on Telegram

Groups on Telegram are falsely claiming affiliation with FirstRand Limited and its chief financial officer, Markos Davias.

The FSCA warns these groups are soliciting money by “promising” returns of 100% within 24 hours through supposed Bitcoin investments.

FirstRand has confirmed it is not associated with these groups, which are misusing its brand, logos, and employee images without permission. The company also clarified that it does not conduct any business via Telegram or other social media channels.

Efforts by the FSCA to contact the group administrators have been unsuccessful.

Aluma Capital impersonation on Telegram and Facebook

A similar scam involves individuals impersonating Aluma Capital (Pty) Ltd and its representatives, Leon Hart and Leonie Nortje. The FSCA has been made aware of a Telegram group called “SA Aluma Capital (Pty) Ltd” soliciting funds with “promises” of 100% returns.

Aluma Capital and Nortje have denied any connection to this group, and Aluma Capital does not conduct business on Telegram.

Additionally, a Facebook page using Aluma Capital’s logo and Hart’s contact details is being used to lure investors, but the company confirmed it is not affiliated with this page.

The FSCA was unable to reach the administrators behind these platforms.

Lethabo Molefe’s investment scheme on Telegram

The FSCA cautions the public against dealing with Lethabo Molefe, who is reportedly soliciting money on Telegram by promising returns of R9 000 on a R900 “investment.” Deposits are requested into a Capitec Bank account belonging to Thato Rapelego, who has denied involvement and stated his account is being used without consent.

Neither Molefe nor Rapelego is authorised to provide financial services in South Africa.

The FSCA is investigating this matter further and will refer it to the South African Police Service.

Caution on Nhlakanipho Sangweni of GetForex

Nhlakanipho Sangweni is suspected of offering a 300% return within three months and falsely claiming association with Asafin (Pty) Ltd, a licensed financial services provider.

Asafin confirmed Sangweni has no affiliation with the company.

The FSCA has not been able to contact Sangweni and reminds the public that he is not authorised to offer financial services.

Alert on Ameritindexmarket’s social media solicitation

Ameritindexmarket has been flagged for soliciting funds via Facebook and Instagram, promising “unrealistic returns within 12 hours”.

The FSCA advises extreme caution with any offer promising rapid, high returns and notes that Ameritindexmarket is not authorised to provide financial services in South Africa.

Attempts to contact Ameritindexmarket were unsuccessful, the FSCA states.

Unauthorised use of Smart Initial Trades investment platform

The FSCA warns about “Smart Initial Trades”, a platform unlawfully using the registered trademark of Automated Outsourcing Services (Pty) Ltd’s iTransact Investment Platform.

Automated Outsourcing Services reported that Smart Initial Trades is defrauding investors by charging excessive fees and requiring compulsory upgrades to access funds.

Impersonation of Atriafinancial SA

Entities operating under names such as Freedom 27, Freedom 27 Trading LLC, and Mirabaud Group Ltd are falsely using Atriafinancial SA (Pty) Ltd’s company details and licence number on their website.

Atriafinancial SA is an authorised financial services provider and has no affiliation with these groups, which also misleadingly reference a related company licensed in Vanuatu.

FSCA warns against fake Stanlib WhatsApp accounts

The FSCA warns the public against WhatsApp accounts such as “Stanlib WhatsApp Investment Group” and one operated by “Mzwandile Ngcobo” (069 162 7744), which falsely claim links to Stanlib.

The company confirmed to the FSCA that these accounts have no association with them.

Advisory to the public

The FSCA urges extreme caution when approached with unsolicited investment opportunities, particularly those found on social media.

The public should not accept financial advice, assistance, or investment offers from individuals or entities not authorised by the FSCA. Authorised financial services providers must clearly display their authorisation status in their documentation. If this is not present, it is advised to further investigate before making any payments.

To avoid financial fraud, individuals should always confirm whether an FSP is registered by checking the FSCA’s database.

Members of the public should always check the following:

• That an entity or individual is authorised by the FSCA to provide financial products and services, including for providing recommendations about how to invest.
• The category of advice the person is registered to provide, because there are instances where companies or people are registered to provide basic advice for a low-risk product but advice on far more complex and risky products.
• That the FSP number used by the entity or individual offering financial services matches the name of the FSP on the FSCA’s database.

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