- The FSCA has warned the public about three impersonation scams involving authorised financial services providers.
- Fraudsters are using WhatsApp and other online platforms to promote fake investments and request banking details from investors.
- Consumers are urged to verify the credentials of financial service providers before investing or sharing personal information.
The Financial Sector Conduct Authority (FSCA) has issued a fresh warning to South Africans to remain vigilant against fraudsters posing as reputable financial institutions in an attempt to steal money and personal information from unsuspecting investors.
The regulator has identified three separate cases in which scammers allegedly impersonated JP Morgan Chase Bank’s Johannesburg branch, Rowan Capital (Pty) Ltd and Orion Broking Solutions (Pty) Ltd. In each case, the fraudsters are believed to have used the names and reputations of legitimate financial service providers to gain the trust of members of the public.
The FSCA said the scams highlight a growing trend in which criminals exploit recognised financial brands through social media platforms and messaging applications to promote fraudulent investment opportunities.
WhatsApp group falsely linked to JP Morgan
One of the warnings concerns an individual identifying himself as David Aserkoff, who allegedly claimed to represent JPMorgan Chase Bank’s Johannesburg branch.
According to the FSCA, the individual promoted investment opportunities through a WhatsApp platform known as JP Wealth Growth Study Group, where members of the public were invited to participate in what were presented as discounted stock offerings.
JP Morgan has confirmed that it has no association with either the WhatsApp group or the individual. The regulator also established that neither the individual nor the administrators of the group are authorised to provide financial services in South Africa. They failed to respond to enquiries from the FSCA.
Rowan Capital clients approached by impersonator
In a second incident, the FSCA said an impersonator used the identity of Rowan Capital and one of its representatives, Gus Allen, to contact the company’s retail investors through WhatsApp.
The fraudster allegedly requested investors’ banking details under the pretext that the information was needed to facilitate the successful withdrawal of their investments.
Rowan Capital confirmed that it is not connected to the impersonator and that the messages were not sent on its behalf. The FSCA said it was unable to make contact with the individual responsible for the impersonation.
Orion Broking name used to solicit investments
The regulator also warned members of the public about individuals operating under the name Orion Broking, who falsely claim to be associated with Orion Broking Solutions (Pty) Ltd.
According to the FSCA, Orion Broking Solutions has confirmed that it has no relationship with the individuals using its name. The authority further stated that Orion Broking is not authorised to provide financial services to members of the public and urged consumers not to accept financial advice or investment offers from unauthorised persons or entities.
Consumers urged to remain vigilant
The FSCA said fraudsters continue to develop increasingly sophisticated methods to convince victims that their operations are legitimate, resulting in South Africans losing millions of rand every year to investment scams.
The regulator warned consumers to be cautious of investment opportunities that promise unusually high returns, require upfront payments, demand additional payments before investments can be released, or create a false sense of urgency by insisting that immediate action is required.
The FSCA also advised the public to be wary of investment offers promoted through social media platforms and those that provide little or no information about the underlying investment product.
Consumers are encouraged to verify whether a financial services provider or representative is authorised before investing any money or disclosing personal information. The regulator said authorised financial services providers are required to display their authorisation status and that investors should independently verify these details if they have any doubts.
Get your news on the go. Click here to follow the Conviction WhatsApp channel.
