- Unlicensed operator: FSCA warns against Mr. Mashilo and MUFUCO’s alleged insurance activity without authorisation.
- Telegram scams: Impersonators falsely represent PSG Wealth, Altron TMT, and use expired licences to lure victims.
- Consumer alert: FSCA urges the public to be vigilant and avoid offers promising fast profits or requiring upfront payments.
The Financial Sector Conduct Authority (FSCA) has issued multiple warnings against individuals and entities conducting unauthorised financial services, flagging a growing trend of fraud involving fake insurance providers, social media impersonators, and unauthorised use of expired financial licences.
The regulator cautions that many scams are now disguised as legitimate operations, often using social media platforms like Telegram to bypass traditional scrutiny.
MUFUCO and Frank Kabelo Mashilo in the spotlight
The FSCA received complaints that Frank Kabelo Mashilo and his entity, Mashram United Funeral Undertakers’ Compliance Organisation (MUFUCO), may be issuing insurance policies to the public without backing from an authorised long-term insurer.
Investigations revealed that MUFUCO is not registered with the Companies and Intellectual Property Commission (CIPC), and neither Mashilo nor MUFUCO are licensed to provide insurance or financial services. Attempts to reach Mashilo and verify the physical address linked to him proved unsuccessful.
The FSCA reiterated that issuing insurance policies without proper licensing from both the FSCA and the Prudential Authority is a criminal offence.
Scammers impersonating PSG Wealth and Elke Brink on Telegram
A Telegram group falsely claiming to be affiliated with PSG Wealth Financial Planning (Pty) Ltd (FSP number 728) and its representative, Elke Brink, is targeting the public with promises of “guaranteed 100% returns.”
PSG Wealth has confirmed it does not conduct any business through Telegram and is not associated with the group. The FSCA was unable to contact the group’s administrators and warned the public not to engage with such platforms.
Altron TMT and Werner Kapp also targeted by impersonators
The FSCA also flagged a Telegram group impersonating Altron TMT (Pty) Ltd (FSP 50256) and its representative, Mr. Werner Gerhard Kapp. Through a group, fraudsters promote forex trading and solicit funds using false promises of high returns in short timeframes.
Altron TMT confirmed it does not market its services through social media and denied any link to the group or its administrators.
Portem Industries accused of using expired FSP licence
Another warning was issued against Portem Industries (Pty) Ltd for unlawfully using the expired FSP number of Portdem (Pty) Ltd (FSP 8267) to attract investment funds. Portdem’s license lapsed in June 2022, and it has since had no authorisation to provide financial services. Portdem has confirmed it is not affiliated with Portem Industries, which failed to respond to FSCA queries.
Public alert: Watch for these red flags
The FSCA strongly advises the public to be cautious when considering investment opportunities or funeral cover plans, especially when promoted via social media or unsolicited messages. Warning signs include:
- Unrealistic or exaggerated returns.
- Urgency or pressure to act and pay quickly.
- Upfront payment requirements for services or training.
- Vague product or investment descriptions.
- Being asked to pay more to withdraw your own funds.
- Claims made exclusively via social media platforms.
The FSCA reminds the public to always verify the registration status of any financial service provider by checking the FSCA’s database at www.fsca.co.za.
#Conviction
Get your news on the go. Click here to follow the Conviction WhatsApp channel.
