The Financial Sector Conduct Authority this week warned the public of an investment scam that uses deepfakes of prominent South African businessman, mining magnate, and philanthropist Patrice Motsepe (pictured).
The Authority said two entities, Gold Earnings and Africa Gold, are fraudulently using images and videos of Motsepe and other individuals to solicit funds and promise unrealistic returns. Gold Earnings and Africa Gold are promising returns of 46% on investments of between R2 000 and R100 000.
A deepfake is a type of synthetic media created using artificial intelligence techniques, particularly deep learning, to manipulate or generate images, videos, or audio that appear authentic. The term “deepfake” is a combination of “deep learning” and “fake”.
The deepfakes depict what appear to be Motsepe promoting the “investments” offered by Gold Earnings and Africa Gold.
Motsepe is the founder and executive chairman of African Rainbow Minerals (ARM), among other companies. This is not the first time that deepfakes of Motsepe have been used in investment scams.
ARM has confirmed that neither it nor Motsepe has any association or relationship with Gold Earnings and Africa Gold. ARM and Motsepe have condemned the actions of Gold Earnings and Africa Gold and are considering civil and/or criminal action, the FSCA said.
It said Gold Earnings and Africa Gold are not authorised in terms of any financial sector law to provide financial services to the public.
CMFX Trading
The FSCA has also advised the public to be cautious when conducting financial services business with CMFX Trading.
It said CMFX, which offers to trade in Bitcoin on behalf of members of the public, is promising returns of up to R23 000 within three days from an initial investment of R6 000.
The Authority pointed out that trading profits cannot be guaranteed, and an offer of unrealistic returns must be viewed with great suspicion.
Without commenting on the specifics of CMFX’s business, the FSCA said CMFX is not authorised in terms of any financial sector law to provide financial services to the public in South Africa. The FSCA could not contact CMFX Trading for comment.
To avoid unnecessary risk, the public should refrain from accepting financial advice, assistance, or investment offers from individuals or entities not authorised by the FSCA. Authorised financial services providers must clearly display their authorisation status in their documentation. If this is not present, it is advised to further investigate before making any payments.
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:
- Phoning 0800 110 443 (toll-free)
- Conducting an online search for an authorised financial institution by licence category: https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-Entities-Persons.aspx
- Conducting an online search for a financial institution that is an authorised FSP: https://www.fsca.co.za/Fais/Search_FSP.htm
What about those using Connie Ferguson on the tik tok, is it a scam or is it legit
Once it talks about money on social media fronting by a well known somebody, run with your 2 feet
Some individuals are prepared to destroy your reputation. Patrice Motsepe worked sleepless nights to be where he is today. Now some companies and companies are using fake images to destroy the mining magnet.
Old story about the FSCA …there are always only warnings and a slap here and there , but let a small broker just have a small diversion …. then these bloody humanoids at FSCA destroy the broker , his income and family . But the other “funeral agengies” they are left and no bother is made about them …..
I still cannot believe that the individuals being used to deep fake the public are not prosecuted ?? Arrest them & try them in court & sentence them to 5 years +- ?? or whatever & this curse will soon stop.
The State FSCA or whoever isn’t taking the necessary action to stop these people from defrauding the community.
Stop pussy footing around & start to lock them up. If not why not ???
Even SABC is also promoting this investment deals. Can FSCA please investigate. Julia’s Malema also appeard on social media platforms promiting this type of investment
Please investigate further
Scammed already
There are names and pictures of other well known artists and activists that are also used. When confronted the response is to send an email to an address for more information if you are interested. Nearly AI generated. They do not post on their own. They hijack other non related posts of people or companies and post it as a response to their posts.
What abalone capitec is also a scammed
Lian Mannas, Is it not a fake? Ha lala Mzantsi for sure.
This thing has been going on for years, why are you only responding now after so many people have suffered?
South Africa is a hub of criminals and they are protected, it’s so sad law abiding citizen are vulnerable not protected
These criminals think are very clever but they ain’t that clever because lifestyle auditing a smarter tool to fighting this,
Hackers are resourcesfull thats why they can commit various types of fraudulent activities using victims information, now they is a trend of paying tenders with foreign income funds or investments of victims. leaving us with much more work to so these people are disturbingly us and killing our economy they must learn from what happened to Mr Craig Warner, i’am sure he must be wishing that convictions related to that similar offences must be taken seriously.
What about Al capitec that are trending now is it the scam ?
What about your employees FCSA who doesn’t do their job. That also something else.I applied to check if other companies I worked for years ago ( 30 – 33 yes ago) if they don’t owe me my pension/provident fund. I filled in the application in 2018 if not mistaken. No one, I mean no one gave me a feedback to say what is the progress. I did follow ups but no one was interested to help me. Why are did you say people should apply and check while your employees have zero communication skills. Frustrating.n
FSCA_ the damage has already been done on your watch, if you were Patriotic about SA, you could have done right by our constitution but now it’s because Mr Rupert and Motsepe have complained about it, put on this act _too little too late.