The Financial Sector Conduct Authority has issued a series of warnings about individuals and entities allegedly using the names of authorised financial services providers (FSPs), well-known businesses, and prominent personalities to solicit investments from the public.
The warnings disclose a common pattern: fraudsters are increasingly using social media platforms, messaging applications, and even artificial intelligence-generated content to create the appearance of legitimacy while promoting unauthorised investment schemes.
Several of the cases involve the impersonation of authorised FSPs.
Individuals operating on Telegram under the name “Ascor Independent Wealth Managers (AIWM)” are using the name of authorised FSP Ascor Independent Wealth Managers CC (FSP 12653) to promote investments. Ascor has no association with the Telegram profiles.
Similarly, individuals operating a WhatsApp group under the name “XM Trading| are presenting themselves as representatives of XM ZA (Pty) Ltd (FSP 49976) while soliciting investments. XM ZA confirmed that it is not associated with the group. The administrators of the group are not authorised to provide financial services to the public.
The FSCA also advised the public to exercise caution when conducting financial services business with Aito Capital, which is using the FSP number of Return on Investment Brokers CC (FSP 6912) on its Facebook page. Return on Investment Brokers confirmed that it has no connection with Aito Capital, which is not authorised by the FSCA to provide financial services to the public.
In another case, Daily Financial Earners is using the names and branding of Rich Ideas Group (Pty) Ltd (FSP 50569) and Rob Mitchell Brokers CC (FSP 31569) to promote investments. Both authorised providers denied any association with the operation. Daily Financial Earners is not authorised to provide financial services to the public.
The Authority also identified instances where well-known individuals and organisations were allegedly being used to lend credibility to investment offers.
According to the FSCA, TPG Joburg Nexus is using the names of American private-equity firm TPG Capital and Dr Duarte da Silva in WhatsApp communications with prospective investors. Both parties are not association with the entity. TPG Joburg Nexus is not authorised to provide financial services to members of the public.
One of the more concerning cases involves the use of AI to create a deepfake video featuring financial journalists Maya Fisher-French and Bruce Whitfield. The video, circulated on Facebook, allegedly promotes investments in “Quantum AI”, described as a company linked to Elon Musk.
The FSCA said the promoters claim investors can earn returns of up to R60 000 a week from an initial investment of R4 200. The regulator believes the individuals behind the video may be providing financial services without authorisation.
Other warnings relate to entities that are not authorised by the FSCA but are reportedly soliciting investments from the public.
Fast Profit Income is allegedly offering cryptocurrency and forex investment opportunities through its website and encouraging members of the public to “invest and earn up to 200% of their first investment”. The FSCA said such promises should be treated with extreme caution. Fast Profit Income is not authorised to provide financial services to the public.
The regulator also warned about Ameer and Sons (Pty) Ltd, which allegedly claimed to hold both an FSP licence and a crypto-asset FSP licence. Although the company was previously issued with a temporary licence number (FSP 54982) during the application process, the FSCA said the application was later abandoned and no authorisation was granted.
In several cases, the Authority said the entities or individuals involved either failed to respond to its enquiries or could not be contacted using the details provided.
The FSCA urged the public to exercise caution when considering unsolicited investment or trading offers, particularly those made on social media.
It pointed to common warning signs such as unrealistic returns, upfront payments, requests for more money before funds are released, pressure to act urgently, and vague information about the product.
The regulator also reminded the public to verify whether a person or institution is authorised, and to report suspicious activity through its hotline or online channels.
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.
