Fraudsters impersonate FSCA commissioner in latest scam

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Another scam in which fraudsters impersonate the Commissioner of the FSCA, Unathi Kamlana, is doing the rounds.

The Authority said this week it received a complaint from a person in Germany who received a letter purporting to have been issued by the FSCA. The impersonators asked him to pay a fee of $10 769 for an “International Legitimacy of Qualification”, which would result in Standard Bank releasing $28 154 926.84 to him. The complainant did not take up the offer.

The FSCA said it is investigating the matter and advises the public to be cautious of such fraudulent schemes. The FSCA does not manage or conduct investments on behalf of the public.

In June last year, the Authority warned about a scam in which a member of the public was sent a WhatsApp from an individual pretending to be Kamlana.

The message was to the effect that the FSCA had concluded an investigation into some sensitive transactions involving the member of the public and an FSP. The impersonator offered a reimbursement, while soliciting a settlement payment.

Villion Trade

The FSCA has advised the public to act with caution if they intend to conduct financial services business with Villion Trade.

In a statement issued this week, the Authority said it has made no findings against Villion Trade, but it pointed out that Villion Trade is not authorised in terms of any financial sector law to provide financial products or render financial services.

Villion Brokers (Pty) Ltd, an authorised financial services provider (FSP No. 52538), is not connected to the activities of Villion Trade, and it is likely that Villion Brokers has been impersonated. Villion Brokers does not provide financial services relating to crypto assets; it conducts funeral business.

Villion Brokers has also not issued or authorised an advertisement featuring a Mrs Viljoen.

The FSCA said it tried to contact Villion Trade, but it has not responded. The FSCA was unable to contact Villion using the telephone numbers on its website.

Donafin

The FSCA said it has come to its attention that Donafin (Pty) Ltd is continuing to provide unauthorised financial services despite a warning issued by the Authority four years ago.

In May 2018, the FSCA informed the public that Donafin and its representatives, Sean Westcott and Leon Lincoln, rendered unauthorised financial services when assisting members of the public with their retirement benefit claims.

The South African Police Service investigated the allegations against Donafin and its representatives, resulting in the arrest of Westcott, among others, the Authority said in a statement this week.

Donafin and Lincoln are alleged to be charging a fee of R1 500 to assist members of the public with their retirement benefit claims. As a result of the latest complaint, the FSCA again warned the public against doing any financial services business with Donafin and Lincoln. Donafin and Lincoln were not available for comment.

Check before you invest

The FSCA says members of the public should always check the following:

  • That an entity or individual is authorised by the FSCA to provide financial products and services, including for providing recommendations about how to invest.
  • The category of advice the person is registered to provide, because there are instances where companies or people are registered to provide basic advice for a low-risk product but advice on far more complex and risky products.
  • That the FSP number used by the entity or individual offering financial services matches the name of the FSP on the FSCA’s database.

You can check whether an entity or person is authorised to provide financial products and services by: