FSCA Warns of Surge in Investment Scams and Impersonation in South Africa

South African investors are facing an increase in sophisticated scams as fraudsters impersonate both the Financial Sector Conduct Authority (FSCA) and licensed Financial Services Providers (FSPs). The FSCA reports a sharp rise in cases where individuals and entities use social media, messaging apps, and online platforms to target unsuspecting investors, often promising unrealistic returns or exclusive investment opportunities.

One notable tactic involves individuals falsely claiming to be FSCA officials. A person using the name Rick Steiner, claiming to be a “Chief Executive Investigator” at the FSCA, has reportedly instructed victims to create and fund cryptocurrency wallets for alleged fund recovery. The FSCA confirms that no such employee exists and does not offer this type of recovery service.

Fraudsters are also impersonating legitimate financial professionals and well-known figures to lend credibility to their schemes. Examples identified by the FSCA include:

• Mr Risto Ketola, presented as hosting an FSCA-endorsed investment competition via WhatsApp.
• Mr Musa Mseleku, falsely promising double returns within 24 hours.
• Ms Anthea Gardner, CEO of Carttesian Capital, whose name has been misused on Telegram to promote illegitimate investment schemes.
• Brokstock SA (Pty) Ltd, falsely associated with WhatsApp campaigns offering “exclusive share packages.”
• Cloudtrade247, operating without FSCA authorisation while soliciting funds under false investment claims.
• Mr Renzo Marco Torrente and Omne Digital Wealth, offering unauthorised crypto investments via Instagram.

These scams share common warning signs, including promises of unrealistic returns, urgent demands for immediate investment, upfront fees or payments, and unclear product information. They are heavily promoted on social media platforms, making them accessible to many investors.

BrokersView reminds you

investors to remain vigilant when dealing with investment opportunities. Carefully verify the credentials of any company or individual offering financial services, watch for pressure tactics or rushed decisions, and consult official channels if unsure. Always exercise caution before transferring funds or engaging with platforms that promise unusually high returns.

You can search for more FSCA-regulated forex service providers through BrokersView.