The Financial Sector Conduct Authority (FSCA) warns the public to exercise caution when conducting financial services business with Lucas Sekhorane Maake (Mr Maake), who also operates as Skuriey.rsa on Telegram.
It was brought to the attention of the FSCA that Mr Maake is using Telegram to offer forex signals and account management services to members of the public. Mr Maake offered to trade on behalf of members of the public, in return for 50% of the profit generated through his trades.
Providing signals refers to the practice of persons making recommendations to their clients in respect of trades and prices in financial products. The signal provider is remunerated through a subscription fee or a percentage of profits. Even in the instances of clients suffering trading losses, signal providers may benefit through commissions paid by brokers.
It is not unusual for signal providers to provide fictitious signals and share fake trading patterns to lure clients into participating.
Whilst the FSCA does not comment on the specifics of Mr Maake’s business, it must be noted that Mr Maake is not authorised in terms of any financial sector law to provide financial services to the public in South Africa. Mr Maake failed to respond to FSCA enquiries.
To avoid unnecessary risk, the public should not accept financial advice, assistance, or investment offers from individuals or entities that are not authorised by the FSCA.
Authorised financial services providers must clearly display their authorisation status in their documentation. If this is not present, it is advised to further investigate before making any payments.
The public is strongly urged to exercise caution when considering investment or trading offers on social media or any unsolicited offers
What is Fraud? “Fraud” is any activity that relies on deception in order to achieve a gain. Fraud becomes a crime when it is a “knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment” (Black’s Law Dictionary). In other words, if you lie in order to deprive a person or organization of their money or property, you’re committing fraud.