Woman double-scammed, financial sector regulator warns of more social media trickery

Investment scammers are increasingly using social media platforms to find victims to defraud.

The Financial Sector Conduct Authority (FSCA) has issued several warnings involving TikTok, Facebook, Telegram, WhatsApp and Instagram.

The scammers are using the names of legitimate companies to find victims.

In one case, the FSCA said the fraudsters pretended to be from International Capital Markets (IC Markets), a registered financial services provider, to operate a scam on TikTok and Facebook.

In one case, a woman was contacted via Tiktok by fraudsters who promised they would invest her money in return for a greater payout, and subsequently requested her to deposit more money to release her investment return.

Another individual on Facebook offered to assist her with recovering her investment returns from the individuals who defrauded her, and this too turned out to be a scam as she was requested to deposit more funds.

IC Markets has confirmed it is not associated with the individuals on TikTok or Facebook using its name.

In another case, two impersonators are illegally using the name of Centaur Asset Management via the WhatsApp number +27-67-209-8867 and fraudulently taking deposits from unsuspecting members of the public.

A fraudulent Instagram account and website run by individuals purporting to be from RCG Markets has also been brought to the attention of the FSCA. The company has confirmed is in no way related to these individuals or the fraudulent account and website being used.

Yet another scam is being run on Telegram using the name of Brantam Financial Services Holdings. The fraudsters are using the company's logo, contact details and directors’ photos to scam unsuspecting clients.

A clue to this not being a legitimate investment lies with the huge “return on investment” the scammers are advertising: a lump-sum investment in return for two or three times the amount initially invested, within four days. Clients are also requested to invest in Bitcoin and other cryptocurrencies.

The FSCA urged would-be investors to be wary “of such schemes being run on messaging platforms, as well as the different social media platforms, as they are on the rise”.

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