Beware of fake videos of Ramaphosa, Motsepe in investment scams: FSCA

The Financial Sector Conduct Authority (FSCA) has warned the public about investment platforms falsely claiming association with prominent figures such as Patrice Motsepe, Leanne Manas, President Cyril Ramaphosa and Deputy President Paul Mashatile.

These platforms have been using sophisticated deepfake videos to promote unrealistic investment schemes and deceive potential investors. The platforms reportedly offer unrealistic daily returns which raises immediate red flags about their legitimacy.

“The FSCA has learnt the platforms may be providing financial services to the public without authorisation. Investors are offered unrealistic returns of between R13,000 and R17,000 per day on an investment of R4,500.”

The platforms use fake images and deepfake videos featuring popular public figures.

“In one of the deepfake videos Motsepe is seen promoting the investments offered via the investment platform and Mashatile is seen confirming the platform is authorised and investors will receive returns,” said the FSCA.

“In another video Ramaphosa is seen promoting investments and guaranteed returns. The individuals behind the platforms are not authorised in terms of any financial sector law to provide financial services to the public.”

Deepfakes are videos where faces and voices of people, often public figures, are digitally altered using artificial intelligence (AI) to appear authentic, misleading viewers.

“The people behind the platforms failed to respond to FSCA queries. To avoid unnecessary risk, the public should refrain from accepting financial advice, assistance or investment offers from people or entities not authorised by the FSCA,” the regulator said.

“Authorised financial services providers [FSPs] must clearly display their authorisation status in their documentation. If this is not present, it is advised to further investigate before making any payments.

“The public is urged to exercise caution when considering investment or trading offers on social media platforms or any unsolicited offers. It is recommended that the public verify that an entity or individual is authorised by the FSCA to provide financial products and services, including for giving recommendations about how to invest.”

The FSCA advised investors to also verify the specific category of financial advice an FSP is registered to provide. “The FSP number used by the entity or individual offering financial services must match the name of the FSP on the FSCA database,” it said.

The South African Banking Risk Information Centre (Sabric) said fraudsters are increasingly using AI to run sophisticated scams.

“AI can emulate voices, create fake IDs and manipulate biometric tools, posing significant risks. The rise of ‘fraud-as-a-service’ platforms allow criminals to access tools, techniques and resources for conducting fraud,” it said.

Sabric also identified another scam known as “pig butchering”, a term used to describe a type of cyberscam that targets people using online messages.

“In this scam, fraudsters pretend to befriend or romance their victims, gradually gaining their trust. They then persuade victims to send money to various accounts, promising high returns.”

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