The Financial Sector Conduct Authority (FSCA) warns the public to exercise caution when conducting financial services business with an individual(s) using the name Mr Sizwe Mbelu (Mr Mbelu) purporting to be associated with PSG Invest (Pty) Ltd (PSG Invest) with FSP number 563.
It has come to the FSCA’s attention that Mr Mbelu is using the name of PSG Invest to solicit and promote investments. He persuades clients via WhatsApp to pay R1 000 as an investment, falsely claiming it would yield significant returns. PSG Invest confirmed that it is not associated with Mr Mbelu.
While the FSCA does not comment on the specific business model or services offered on the social media platform, it is important to note that the administrator of this platform is not authorised under any financial sector law to provide financial services to the public.
The FSCA has verified that there is no affiliation between PSG Invest and the individual.
The individual behind the scheme failed to respond to FSCA queries
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.