‘Investment’ scammers impersonate companies on Telegram

Posted on Leave a comment

The Financial Sector Conduct Authority has urged the public not to conduct financial services business with unauthorised entities and to exercise caution when considering investment or trading offers on social media platforms.

The Authority’s warning comes as two more impersonation scams doing the rounds on Telegram have come its attention.

Individuals are using Telegram groups to solicit funds from the public by claiming to be associated with Dartcom SA (Pty) Ltd and its chief executive, Anton Jooste.

Dartcom is a specialist communications and energy solutions provider. It does not provide any financial or investment services.

Despite this, the impersonators are abusing Dartcom’s brand name, logos, trademark, and pictures of its employees in offers to trade in cryptocurrency on behalf of members of the Telegram groups. The promised returns are unrealistic.

Dartcom does not engage in cryptocurrency trading and is no way associated with the impersonators.

The other impersonation scam involves 4Sight Holdings Limited and its chief executive, Tertius Zitzke.

4Sight Holdings is a public company listed on the JSE’s Alternative Exchange.

Individuals are using Telegram groups to solicit funds from members of the public by claiming to be associated with 4Sight Holdings and Zitzke. Members of the Telegram groups are promised unrealistic returns of up to R20 000 from an initial investment of R5 000 within 24 hours.

4Sight Holdings is not associated with the impersonators, who are using its brand name, logos, trademark, and pictures of its employees without its permission. 4Sight Holdings also confirmed that it does not conduct business using Telegram and social media.

Investify360

The FSCA has alerted the public that Investify360 may be rendering financial services without authorisation.

Although Investify360’s website states it is regulated by the FSCA, the Authority said Investify360 is not authorised to render any financial services-related business in terms of any financial sector law.

According to the FSCA, Investify360 offers members of the public daily returns of up to 75%, which is not realistic.

The FSCA was unable to reach Investify360 for comment.

Outlaws Holdings

The Authority has also warned the public to be cautious when conducting financial services business with Thabiso Comfort Chepape and Outlaws Holdings (Pty) Ltd.

Chepape and Outlaws Holdings are promising investors guaranteed returns of up to R23 000 from an initial investment of R5 000 within two weeks. The profits from trading cannot be guaranteed, and an offer of unrealistic returns must be treated with utmost caution.

Without commenting on the nature of Chepape and Outlaws Holdings’ business, the FSCA pointed out that they are not authorised in terms of any financial sector law to provide financial products or render financial services. Trading in forex derivatives on behalf of clients requires an FSP licence.

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:

Leave a Reply

Your email address will not be published. Required fields are marked *