‘FSB letter’ used in loan scam

Published Nov 29, 2016

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The Financial Services Board (FSB) has warned the public about a scam involving a letter that purports to come from the regulator.

The scam works like this: an entity called Skeme Finance Group offers you a loan. If you apply for the loan, you are sent a letter bearing the FSB’s logo and a picture of the deputy registrar of financial services providers, Caroline da Silva. The letter instructs you to pay an “enclosure fee” of R13 000 prior to receiving the loan. The letter says the fee will be refunded to you within 24 hours of the loan amount being released. It also states that the FSB requires payment of the “enclosure fee” for the loan transaction to be completed.

The FSB says it does not approve loans and would never require a member of the public to pay an “enclosure fee”.

The FSB is not in any way affiliated to Skeme Finance Group, which is not approved by the FSB, and the letter purporting to be from the FSB is fraudulent.

The FSB again reminds consumers who want to conduct financial services with an institution or person to check beforehand with the FSB on either 0800 110 443 or www.fsb.co.za whether the institution or person is authorised to render financial services.

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