- The FSCA has issued four public warnings related to Telegram investment schemes and unauthorised financial activities.
- Scammers have impersonated well-known financial companies, used company branding and promoted forex trading, Bitcoin mining and account management services.
- The regulator says South Africans keep losing millions of rands to sophisticated social media investment scams that are disguised as real businesses.
South Africans looking for quick investment opportunities on Telegram are increasingly targeted by sophisticated fraudsters who use the names of trusted financial companies to gain credibility and attract money from unsuspecting people.
The Financial Sector Conduct Authority (FSCA) has put out several warnings about impersonation scams and unauthorised investment activities linked to Telegram groups, forex trading operations and fake investment promotions. These include cases involving PWM Wealth Management, Fairtree Asset Management, Prime Investments, Shaakirah Johnson and Cloud 9 Investments SA.
The regulator explained that scammers are taking advantage of the growing popularity of online investing by creating fake groups that look legitimate at first. In several cases, fraudsters have used company logos, staff photos, executive names and investment language that people associate with real, licensed financial institutions.
Trusted financial brands hijacked online
One warning involved a Telegram group using the name and logo of PWM Wealth Management to promote trading strategies. PWM Wealth Management confirmed to the FSCA that it had no connection to the people running the group.
Another warning was about people pretending to be Fairtree Asset Management and its chief executive, Kobus Nel. The Telegram group called itself “Fairtree Capital Ltd” and used the company’s branding and executive details to try to get money from the public.
Prime Investments was also the subject of a warning after a Telegram group used the company’s branding and staff photos to promote Bitcoin mining, binary options trading and account management services. The company said it had nothing to do with the group.
The FSCA said some of the people behind these Telegram operations could not be contacted, and others did not respond to questions from regulators.
Forex trading activities under the spotlight
Separately, the FSCA warned people to be careful when dealing with Shaakirah Johnson and Cloud 9 Investments SA.
The regulator said it had received information that Johnson and Cloud 9 were asking people for money to invest in forex trading. The FSCA confirmed that neither Johnson nor Cloud 9 Investments SA is authorised to offer financial services to the public.
According to the FSCA, Johnson said she only traded for family and friends, not for the public, and that she has since stopped trading. The regulator said the investigation is ongoing.
Millions lost to social media scams
These warnings show increasing concern in the financial sector about how easily scammers use social media to imitate real investment businesses and take advantage of people who want to improve their finances.
The FSCA warned that many scams are carefully disguised to look professional and trustworthy. Common warning signs include promises of unrealistic returns, pressure to pay quickly, demands for upfront payments, requests for more money before you can withdraw, and vague explanations about how the investments work.
The FSCA urged South Africans to check whether individuals or companies offering investment opportunities are properly authorised before sending any money.
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