The Financial Sector Conduct Authority (FSCA) warns the public to act with caution when dealing with persons claiming to assist investors who lost funds invested with Banxso (Pty) Ltd (Banxso).
The FSCA received complaints from members of the public who advised that they were contacted by persons claiming to be investigating Banxso and that they have located funds belonging to investors. These persons contacting members of the public use different names and entities, as well as falsely claim to be representing legitimate entities and regulators.
The public is advised to be on the lookout for the tell-tale danger signs when dealing with persons offering to claim or recover funds on behalf of clients. These red flags include requiring clients’ personal details, financial information, access to bank accounts or crypto wallets and requiring payment of funds for investments to be paid back.
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.