Don’t be fooled: protect your retirement savings from scammers and “finfluencers”

Your retirement savings are among your most valuable assets. But in today’s digital world, scammers are constantly finding new ways to deceive people, especially those who may not be familiar with financial jargon or online risks. At the same time, social media is flooded with individuals offering financial advice, but not all of them are qualified or trustworthy.

Let’s break down what you should look out for and share practical steps to help you protect yourself. 

Scammers are getting smarter

In South Africa, there’s been a rise in fraudsters pretending to be acting on behalf of trusted financial institutions, regulators like the FSCA (Financial Sector Conduct Authority), or even well-known figures in the retirement industry. These scams often come through emails, WhatsApp messages, or social media posts that look official and personal.

What to watch out for:

·        Messages that seem to come from senior people in the retirement industry, offering “exclusive” investment opportunities.

·        Emails or WhatsApp messages that look like they’re from your retirement fund or a regulator, asking you to click on a link or share personal details.

·        Fake websites or social media accounts using real logos and names to appear legitimate.If you didn’t request the information, or if the communication feels rushed or too good to be true, pause and double-check.

Don’t panic – scammers often rely on triggering an emotional reaction or a fear response to cause people to provide personal information.

 Be careful who you follow online

“Finfluencers,” i.e., financial influencers on platforms like TikTok, Instagram, and YouTube, are gaining massive popularity. While some share useful tips, many lack the training or qualifications to provide sound financial advice. Even more concerning, some are paid to promote high-risk products or schemes.

Why does this matter? Retirement savings are long-term investments that require careful planning. Acting on advice from someone who doesn’t understand your circumstances or the rules governing retirement funds, can lead to poor decisions and lost money.

 Simple ways to stay safe

You don’t need to be a financial expert to protect your future - just keep these simple tips in mind:

·        Check credentials: Is the person or company registered with the FSCA? You can check here: www.fsca.co.za

·        Be cautious with unsolicited messages: If you get a message out of the blue, especially from someone claiming to be a senior figure, verify it before responding. You can do this by confirming that the email address is valid or contacting the provider directly through the contact details on their website (and NOT the details provided in the unsolicited message).

·        Don’t share personal info: Legitimate institutions won’t ask for your passwords or banking details via email or WhatsApp messages. In particular, don’t click on any links in messages, as that could redirect you to a scammer.

·        Ask for help: If you’re unsure, speak to your retirement fund administrator or a certified financial advisor. Want to learn more?Your go-to resources for information you can trust:

·        FSCA Consumer Education Portal https://www.fscamymoney.co.za – Offers financial literacy tools and the MyMoney Learning Series for South African consumers.·        FSCA Scam Alerts https://www.fsca.co.za/Pages/Warnings-and-Alerts.aspx – View the latest warnings issued by the FSCA about scams and impersonators.

·        Money Smart Week South Africa (MSWSA) https://www.mswsa.co.za – A national campaign promoting financial literacy through free workshops, resources, and events.

 Your retirement savings represent your future. Don’t let scammers or unqualified finfluencers jeopardise it. Stay informed, stay vigilant, and ask for help when you need it.

* Giles is the head of strategy at Prescient Fund Services.

PERSONAL FINANCE