WhatsApp ‘investment’ scam targets Fedgroup

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The Financial Sector Conduct Authority (FSCA) has warned the public about a WhatsApp group that pretends to be associated with Fedgroup Asset Management (Pty) Ltd.

The Authority said it received information from Fedgroup that a certain Zwelibanzi Sibiya claimed to be a Fedgroup employee and was inviting members of public, via a WhatsApp group, to join an investment scheme.

Fedgroup, which is an authorised Financial Services Provider (licence number 665) is not associated with Sibiya or his WhatApp group.

The FSCA said Sibiya is not authorised in terms of any financial sector law to render financial advisory and intermediary services. He Sibiya was not available for comment.

Immediate Matrix

The Authority has also warned the public to be cautious when conducting financial services business with Immediate Matrix, a cryptocurrency trading platform.

Entities offering investments in financial products to South African citizens or within South Africa must be authorised by the FSCA. Immediate Matrix is not authorised in terms of any financial sector law to provide financial products or render financial services to South Africans or within South Africa, the Authority said.

Immediate Matrix has used images of well-known individuals, such as Elon Musk and Patrice Motsepe, as part of its advertising and marketing campaign. The FSCA suspects that Immediate Matrix is using the images of these people without their consent.

Immediate Matrix was 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, as 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: