The Financial Sector Conduct Authority (FSCA) warns the public to act with caution when conducting financial services related business with individuals that are impersonating Cboe Global Markets based in Chicago, United States (Cboe US) and using authorised financial services provider (FSP) number 14315.
The FSCA received complaints from members of the public, who invested with the impersonators and did not receive their returns. According to complainants, the impersonators provided them with an FSP certificate, that was purportedly issued by the Financial Services Board (the predecessor of the FSCA). The FSP number (14315) that appears on the certificate belongs to Wings Financial Services CC (WFS), trading as CSFin. Cboe US have denied any association or relationship with the impersonators. WFS informed the FSCA that it is not associated with the impersonators. The FSCA could not contact the impersonators.
The public is advised to be on the lookout for the tell-tale danger signs when dealing with persons offering attractive investment opportunities. These red flags include unrealistic returns being offered, claims that the entity or person does not require an FSCA licence, vague information about the investment product, or the company that provides the financial product claims that the investor must act urgently, and requires more money paid over to have their investment returned to them.
One of the following methods may be used to confirm the status and FSP number of a service provider or a person that claims to be an authorised service provider:
- Toll-free number: 0800 110 443
- Online search for authorised financial institution by license category: https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-Entities-Persons.aspx
- Online search for a financial institution that is an authorised FSP in terms of the FAIS Act: https://www.fsca.co.za/Fais/Search_FSP.htm
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.