Be cautious if approached by these operators, FSCA warns

By Martin Hesse Time of article published Nov 26, 2021

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The Financial Sector Conduct Authority (FSCA) has issued warnings against several operators that are unlawfully offering financial services to the public.

Individuals impersonating the Export Credit Insurance Corporation. A group of individuals are impersonating the Export Credit Insurance Corporation (ECIC) brand to defraud unsuspecting financial customers. These individuals target their victims on WhatsApp and Facebook social media platforms, falsely claiming to be agents or representatives of the ECIC, which is an authorised financial services provider. They offer bogus loans to their clients in exchange for a small deposit. Once the funds have been deposited, the individuals cut off correspondence and disappear with their victims’ money. The ECIC confirms that this is not how its business operates and that these scammers are using their brand name, logos and trademark without permission to dupe the public.

Tshepo Ernest Mohlala and Empire Forex Penetrators. The FSCA has received information that Mohlala and Empire Forex are rendering financial services to the public by trading forex on their behalf. Mohlala and Empire Forex are not authorised to give any financial advice or render any intermediary services in terms of the Financial Advisory and Intermediary Services (FAIS) Act

David Greenberg and Prime Bright Investment. The FSCA has received information that Greenberg is conducting unregistered business and soliciting money from members of the public to invest in electric motor vehicles. The FSCA has been unable to contact Greenberg.

Invest Markets and 24Option.com. According to the websites of Invest Markets and 24Option.com, it appears that they are based in Belize, providing trading platforms that offer trading in forex, contracts for difference (CFDs) derivatives and cryptocurrencies. The FSCA points out that for a company to offer CFD and forex trading in South Africa, it must be licensed to do so by the FSCA. It therefore appears that these platforms are conducting unregistered financial services business, which is unlawful.

Bakhulise Cleaning and Funeral Service. According to the information received by the FSCA, Bakhulise offers funeral policies to members of the public. Bakhulise has failed to provide the FSCA with proof of underwriting by an insurer. In terms of the Insurance Act, funeral policies should be underwritten by a licensed insurer.

Kuveyt Yatirim. According to the FSCA, Kuveyt Yatirim is soliciting investments from people and promising unrealistic and excessive returns. It appears to be a foreign entity that is not registered with the authority and its website guarantees that its “FSCA License guarantees investors investments of up to 100 000 USD”. This statement is completely false and misleading, the FSCA says.

The FSCA reminds consumers who wish to conduct financial services with an institution or person to check beforehand with the FSCA on either the toll-free number (0800 110 443) or on the website www.fsca.co.za

PERSONAL FINANCE

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