As technology increases, impersonation scams also increase as it gets easier for scammers to pretend they are someone else, the FSCA says.
The Financial Sector Conduct Authority (FSCA) is warning consumers against various impersonation scams where scammers impersonate a well-known financial service provider or its employee and use the fake identity to solicit funds from the public on platforms such as Telegram.
The FSCA warns consumers to be careful when engaging with administrators of a Telegram group operating under the name PSG Wealth (Pty) Ltd that falsely claims to be affiliated with PSG Wealth Financial Planning (Pty) Ltd (FSP number 728) and its representative, Elke Brink.
After receiving reports about a Telegram group purporting to be associated with PSG Wealth to solicit funds from members of the public, the FSCA found that the administrators of the group also use the persona of Brink as part of the scheme. Members of the Telegram group are promised guaranteed returns of 100%.
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Neither real PSG Wealth nor Brink are associated with Telegram group, FSCA says
The FSCA says PSG Wealth confirmed that neither it nor Brink have any association with the Telegram group and its administrators. PSG Wealth also confirmed that it does not conduct business through the Telegram platform.
“While the FSCA does not comment on the specific business model or services offered on the Telegram group, it is important to note that the administrators of the group are not authorised under any financial sector law to provide financial services to the public, the FSCA says. The individuals behind the Telegram group failed to respond to FSCA queries.
Consumers are strongly urged to exercise caution when considering any unsolicited offers, investments, or trading offers on social media platforms. There are many fraudsters operating scams, and the number is growing. South Africans lose millions of rands every year to fraudsters in illegal operations, sometimes well-disguised as legitimate operations.”
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Also watch out for Portem Industries impersonating Portdem (Pty) Ltd, FSCA says
The FSCA says it also received information that Portem Industries is impersonating Portdem (Pty) Ltd (Portdem).
“It has come to the FSCA’s attention that Portem Industries used the Financial service provider number (FSP 8267) of Portdem to solicit funds from the public for investment purposes. Portdem was authorised to provide financial services in South Africa until 14 June 2022, when its license lapsed. Portdem is therefore no longer authorised to provide financial services.”
The FSCA says Portdem confirmed that it is not associated with Portem Industries, while Portem Industries failed to respond to FSCA queries. In this case, the FSCA also warned consumers to be cautious when considering investment or trading offers on social media platforms.
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FSCA warns consumers about Altron TMT impersonators
The FSCA also warned consumers against persons impersonating Altron TMT (Pty) Ltd and urges them to be cautious when conducting financial services business with someone on Telegram purporting to be associated with financial service provider Altron TMT (Pty) Ltd (FSP Number 50256) and its representative, Werner Gerhard Kapp.
“We were made aware that the individuals behind this Telegram group are using the names of Altron TMT and Kapp via this Telegram link: https://t.me/Leadership_Andre_Cronjee1. The impersonators promote Forex trading and solicit funds from members in the group by promising high and unrealistic returns within a short period,” the FSCA says.
The FSCA points out that consumers must view any offer of unrealistic returns with great suspicion, especially if it is coupled with an unrealistic turnaround time for you to receive the profits.
Altron TMT confirmed that it and Kapp are not affiliated with the Telegram group or its administrators. It also does not use social media and specifically Telegram to market its services or solicit investments, the FSCA says.
Notwithstanding the FSCA’s attempts to contact the administrators of the Telegram group using the details in its possession, the administrators of the Telegram group could not be reached.
The FSCA also warns the public, in this case, to be careful when investing their funds, as the number of scams is growing.
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What to watch out for to spot an impersonation scam FSCA says
The FSCA says consumers must be on the lookout for certain tell-tale danger signs when approached by people 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
- Vague information about the investment product.
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How to check if a financial service provider is legitimate
Consumers can use one of these methods to confirm whether a service provider or person is authorised to act as a financial service provider n FSP by the FSCA, including to verify its financial service provider number: