The FSCA warns that two people are using its name to scam consumers
It sounded fantastic when a woman was told that she had more than R3 million due to her, but first had to pay some money to get the sum from the Financial Sector Conduct Authority (FSCA). But once she made the payment, the person – and the money – disappeared.
It sounded believable because Bennett Nkomo said that he is from the FSCA.
The FSCA is now warning consumers to be cautious when dealing with Nkomo, who pretends to be an employee of the authority. It received information that Nkomo informed a consumer that an amount of R3 915 670 was due to her and would be released into her bank account once she paid levies to the FSCA.
The consumer made various payments, which she believed was made to the FSCA. Despite making these payments, she did not receive the funds that Nkomo said was due to her.
ALSO READ: FSCA warns consumers against these impersonation scams
‘FSCA employee’ did not know what it stands for…
Nkomo used the FSCA logo and its physical address in his communication, but he referred to the FSCA as the Tactical Financial Authority and claimed that it was licenced in terms of Section 8 of the Financial Advisory and Intermediary Services Act with a license number 53789.
However, in term of the FSCA’s records, FSP number 53789 belongs to FSP Schindlers Digital Assets, which confirmed that it had no association with Nkomo and was not aware that he was using its FSP number. Schindlers did not authorise Nkomo to use its FSP number.
The FSCA also confirms that Nkomo is not its employee and that the bank account details he provided do not belong to it. It said that it holds no funds on behalf of members of the public. Nkomo failed to respond to the authority’s enquiries.
The FSCA says it is investigating the matter and urges the public to be vigilant when approached with unsolicited offers involving large sums of money, especially when the offers require upfront payments.
ALSO READ: Warning: impersonation investment scams are increasing
Michael Lewis not investigator appointed by the FSCA
The FSCA also warns South Africans to be cautious when dealing with other people claiming to be working for it.
The authority received a complaint from a consumer who received an email from Michael Lewis, who claims to be a chief executive investigator appointed by the FSCA. Lewis told the consumer that the authority had made a breakthrough in an investigation involving an unauthorised online trading platform.
Lewis informed the consumer that to receive the assets recovered, they will need a cryptocurrency wallet and access to a crypto exchange platform to convert the recovered funds into rands.
However, the consumer became suspicious and stopped talking to Lewis and reported the matter to the FSCA.
In response, the FSCA confirmed that it does not employ Lewis and that it does not deal with recovered assets on behalf of complainants. The authority is investigating this matter and urges the public to be vigilant.
ALSO READ: FSCA issued fines to the value of almost R200 million last year
How to check and complain at the FSCA
Consumers can use one of these methods to confirm whether a service provider or person is authorised to act as an FSP by the FSCA, including to verify their FSP number:
- Call the authority to confirm whether a person or institution is authorised on the toll-free number 0800 110 443
- Click here to check online to confirm if someone or an institution is authorised.
Consumers can also report suspicious activities by calling the ethics and fraud hotline at 0800 313 626. You can also send an email to [email protected] or visit the website at www.behonest.co.za.
