FSCA Issues Public Warnings on Unauthorised Financial Services and Scams
The Financial Sector Conduct Authority (FSCA) has recently issued several public warnings regarding unauthorised financial services and scams.
Below we provide a summary of these cases and their implications.
Future Traders (17 December 2024)
Future Traders has been flagged for soliciting funds by offering cryptocurrency trading with promises of guaranteed returns. They claim to be authorised under a falsified FSP number. The FSCA confirms that Future Traders is not authorised to provide financial services in South Africa.
Read the FSCA Press Release for more details.
Impersonation of Rand Swiss (Pty) Ltd (19 December 2024)
Fraudsters are using Telegram groups to impersonate Rand Swiss (Pty) Ltd and its director, Gary John Booysen. The scheme promises unrealistically high returns of R16,000 from an R2,000 investment. Rand Swiss confirmed that it does not operate on social media, and the FSCA warns against dealing with these impersonators.
Read the FSCA Press Release for more details.
Impersonation of Cboe Global Markets (19 December 2024)
Impostors are fraudulently using the name of Cboe Global Markets and an FSP number belonging to another entity. Victims report non-payment of returns. Cboe Global Markets and the legitimate FSP deny any association with the impersonators.
Read more in the FSCA Press Release.
Mr. Mulalo Rakhadani and Fraudulent RE Certificates (23 December 2024)
Mr. Mulalo Rakhadani is selling fake Regulatory Examination 5 (RE) certificates on Facebook, misusing the FSCA’s name and logo. The FSCA advises individuals to obtain RE certificates exclusively from the approved provider, Moonstone Information Refinery.
Read more, including contact details read the FSCA Press Release.
CMFX Trading (10 January 2025)
CMFX Trading solicits Bitcoin investments with promises of high, guaranteed returns—up to R23,000 from an R6,000 investment within three days. The FSCA confirms that CMFX Trading is unauthorised and highlights the risks associated with such unrealistic guarantees. The FSCA points out that trading profits cannot be guaranteed and an offer of unrealistic returns must be viewed with great suspicion.
Read more in the FSCA Press Release.
What You Need to Know
All financial service providers and crypto traders must be registered with the FSCA. Advise clients to always verify financial service providers on the FSCA database. To confirm the status and FSP number of a service provider or a person that claims to be an authorised service provider:
Call the Toll-free number: 0800 110 443
Online search for authorised financial institution by license category.
Online search for a financial institution that is an authorised FSP in terms of the FAIS Act.
Beware of red flags, such as unrealistic returns or unauthorised entities soliciting funds on social media. Remain vigilant when approached with seemingly lucrative (too good to be true) investment opportunities. Warning signs to watch for include promises of excessively high, guaranteed returns, assertions that the entity or individual does not need an FSCA license, unclear details about the investment product, urgent demands to act quickly, or requests for additional payments to recover initial investments.
Choose Your Path to Exclusive Insights
Stay ahead in the world of accounting with premium content designed for professionals like you. Access expert articles, industry trends, and essential resources. Become a CIBA member and claim your CPD hours from CIBA.