The Financial Sector Conduct Authority (FSCA) has issued a public warning urging members of the public to exercise caution when engaging in financial services transactions with Wextraders Capital (Wextraders) a company based in the United States of America or with individuals claiming to be associated with it.
The FSCA has received reports that individuals operating under the name Wextraders, and based in South Africa, are soliciting funds from members of the public for investment purposes. These individuals claim to trade in cryptocurrencies on behalf of investors and promise unrealistic returns, which the FSCA strongly advises should be treated with suspicion.
While the FSCA does not comment on the specific business activities of Wextraders, it is important to note that neither Wextraders nor the individuals involved are authorised under any South African financial sector law to provide financial services to the public. Wextraders was unavailable for comment.
The FSCA reminds the public to avoid accepting financial advice, assistance, or investment offers from any person or entity not authorised by the FSCA. Legitimate financial services providers are required to clearly display their FSCA authorisation status in all official documentation. If such proof is absent, individuals are advised to conduct further due diligence before making any financial commitments.
The public is also strongly urged to exercise extreme caution when considering investment or trading offers received via social media platforms or through unsolicited communications. For a list of authorised financial services providers, or to verify the status of a provider, please visit the FSCA’s official website at www.fsca.co.za.
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.