The Financial Sector Conduct Authority (FSCA) cautions members of the public against conducting financial services business with Mr Nhlanhla Shabalala.
The FSCA has received information that Mr Shabalala is offering forex signals and forex trading services to members of the public via Facebook. It is alleged that he instructs clients to deposit funds into a trading account, over which he exercises control for trading purposes. Mr Shabalala reportedly operates on a 50/50 profit-sharing arrangement, while not sharing in any losses incurred.
Without commenting on the business of Mr Shabalala, the FSCA confirms that Mr Shabalala is not authorised by the FSCA to provide financial services to members of the public. Mr Shabalala failed to respond to FSCA enquiries.
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.