Personal Finance Financial Planning

FSCA issues multiple warnings over fraudulent investment schemes

Dieketseng Maleke|Published

The Financial Sector Conduct Authority has issued urgent warnings about several fraudulent investment schemes operating in South Africa. Scammers are impersonating legitimate financial institutions and using social media platforms to lure unsuspecting investors. Learn how to identify these scams and protect your investments.

Image: File photo.

The Financial Sector Conduct Authority (FSCA) has issued a series of public alerts warning South Africans about fraudulent individuals and entities impersonating legitimate financial service providers to solicit funds through social media and messaging platforms.

The FSCA has cautioned the public against engaging with individuals claiming to represent Altvest Capital Solutions and its CEO, Mr Warren Wheatley, particularly via Telegram. Altvest Capital is a juristic representative of CAEP Asset Managers (Pty) Ltd, authorised under FSP number 33933.

According to the regulator, a Telegram group has been falsely presenting itself as affiliated with Altvest Capital and encouraging users to invest. Altvest Capital has confirmed it has no connection to the group and does not operate through social media or private messaging apps. Attempts by the FSCA to contact the group’s administrators were unsuccessful.

In a separate warning, the FSCA flagged Mr David Sean for unlawfully using Capitec Bank Limited’s FSP number (46669) to promote investment opportunities via WhatsApp. Capitec has confirmed it has no affiliation with Mr Sean.

While the FSCA refrained from commenting on Mr Sean’s business dealings, it confirmed that he is not authorised to provide financial services. The regulator says efforts to reach him using the available contact details were unsuccessful.

Meanwhile, the FSCA has also raised concerns about an entity operating under the name Quantum Wins. Reports indicate that the platform solicits cryptocurrency investments online, promising guaranteed profits. However, once funds are deposited into digital wallets, investors are unable to access their money or any returns.

Quantum Wins claims on its website to be compliant with FSCA regulations and subject to regular audits. The FSCA has refuted these claims, stating that the entity is not authorised to offer financial services in South Africa. Attempts to contact Quantum Wins have also failed.

Common red flags and public advisory

The FSCA urges the public to remain vigilant and avoid engaging with unauthorised individuals or entities, especially when approached through social media. Fraudulent schemes often appear legitimate and can result in significant financial losses.

Key warning signs include:

  • Promises of unusually high or guaranteed returns
  • Investment offers made via social media or messaging apps
  • Requests for upfront payments or additional fees to release funds
  • Charges for onboarding or training
  • High-pressure tactics urging immediate action
  • Vague or incomplete information about the investment

The regulator says that before committing to any financial product or service, the FSCA strongly recommends verifying whether the provider is authorised. "This includes checking the FSP number and confirming the identity of individuals claiming to represent licensed entities. The public can contact the FSCA directly for verification," it says.

For more information or to report suspicious activity, visit the FSCA’s official website at www.fsca.co.za.

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