You either have to be incredibly brave or incredibly stupid to operate a cloning scheme using the FSCA and a known employee.
The Financial Sector Conduct Authority (FSCA) warns the public to be cautious when dealing with individuals impersonating the FSCA, and its staff member, Ms Felicity Mabaso (Ms Mabaso).
The impersonators appear to be operating a “cloning scam”, where they assume the identity of the FSCA or members of its staff (Ms Mabaso) to defraud the public.
The FSCA received complaints from members of the public, claiming that they were contacted by the impersonators and requested to pay over funds, so that their (members of the public) investment profits could be released.
The FSCA confirms that it is not involved with the release of investment profits on behalf of complainants. The FSCA was unable to reach the impersonators on the contact details provided to it. The FSCA is investigating this matter and urges the public to be vigilant.
The public is strongly urged to exercise caution when considering unsolicited investment or trading offers, especially those communicated through social media. The public is urged to act with care when investing their funds. There are many fraudsters operating scams, and the number is growing. South Africans lose millions of rands every year to fraudsters. Illegal operations are sometimes well-disguised as legitimate operations. The public is advised to be on the lookout for certain tell-tale danger signs when approached by persons offering attractive investment opportunities.
These red flags include:
- Unrealistic or exaggerated returns
- Offers made on social media platforms
- Requirements to pay for services upfront
- Requirements to pay more money to have your investments returned
- Requirements to pay for training
- Claims that you must act and pay urgently i.e. creating a sense of urgency
- Vague information about the investment product.
Members of the public may use one of the following methods to confirm whether a service provider or person is authorised to act as an FSP by the FSCA, including to verify their FSP number:
To confirm whether a person or institution is authorised, contact the FSCA on the toll-free number 0800 110 443 or visit https://www.fsca.co.za/Fais/Search_FSP.htm.
Suspicious activities can be reported via the Ethics and Fraud Hotline at 0800 313 626, by email at fsca@behonest.co.za, or online at www.behonest.co.za.