Warning: impersonation investment scams are increasing

Picture of Ina Opperman

By Ina Opperman

Business Journalist


The Financial Sector Conduct Authority (FSCA) often warns about fake investment schemes on Telegram promising high returns and little risk.


Investment scams are increasing in South Africa, especially on the popular messaging app Telegram, where scammers impersonate reputable financial institutions like Sanlam to trick people into handing over their money.

One notable scam is fake get rich quick investment schemes on legitimate-looking groups on Telegram that lure consumers into potentially losing substantial sums of money.

Helen du Toit, head of forensics at Sanlam, says one of the most recent scams involving the Sanlam brand targets clients on Telegram, a cloud-based messaging app that lets users send messages, photos and files and is known for its emphasis on privacy, with secret chats, self-destructing messages and the option to delete messages, leaving no trace.

“Remember, a legitimate financial services provider will not approach clients for business or transactional messaging on a social media app, nor would it request personal information via these channels,” Du Toit said.

“It is critical that people have the confidence to say no to scammers by learning to spot red flags and report them. If it sounds too good to be true, it probably is. Building real wealth takes consistency and time.”

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Watch out for these red flags of impersonation investment scams

Du Toit says consumers must watch out for these red flags when scammers target them:

  • They impersonate financial institutions: Fraudsters create fake groups posing as legitimate financial service providers (FSPs).
  • They use public figures’ identities: Scammers impersonate well-known personalities to appear credible. They then reach out to individuals with “amazing” investment opportunities, with the public figure’s name lending legitimacy.
  • They promise unrealistic returns: These scams often advertise investment plans with guaranteed high returns over a short period of time. For example, fraudsters impersonating a known investment house claimed investors could multiply their investments by eight times their initial capital within six days.
  • They request crypto payments: Scammers often prefer Bitcoin and other cryptocurrencies to make transactions untraceable.
  • They may fake official documents: Fraudsters misuse logos, FSP numbers and fake FSCA certificates to appear legitimate.

Why are these scams increasing and why are so many people falling for them? Du Toit says scams are rising in South Africa due to a mix of economic hardship, smart tactics and digital anonymity.

“With rising unemployment, people are more vulnerable to promises of quick financial gain. Offers to double your money in days are hard to resist in tough times.”

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Impersonation investment scams very convincing with technology

She points out that scammers are now highly convincing, using slick Telegram channels, fake testimonials and images of celebrities or CEOs.

“Some impersonators are so convincing they even fooled friends of real business people.”

How easy it is for the scammers to remain anonymous is another factor in the growth of scams, she says. Telegram’s encrypted chats, private groups and untraceable usernames create ideal conditions for fraud.

“Many victims are also not familiar with digital scam red flags, especially older people or people who are new to crypto and online investing. Scammers often seem to exploit this with scripts designed to create urgency and the fear of missing out.”

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How to protect yourself from impersonation investment scams

To safeguard yourself against these scams, Du Toit suggests:

  • Verify authorisation: Before engaging with any financial service offering, confirm that the entity or individual offering it is authorised by the FSCA. You can verify this on the FSCA’s official website at www.fsca.co.za or contact them directly.
  • Be sceptical of high returns: Be cautious of investment opportunities that promise guaranteed high returns with little or no risk. If it sounds too good to be true, it very likely is.
  • Avoid unsolicited offers: Be cautious of unsolicited messages or invitations to join investment groups on Telegram or other messaging platforms.
  • Do not share your personal information: Never share sensitive personal or financial information with unknown individuals or groups online.
  • Report suspicious activity: If you encounter a suspected scam, report it to the FSCA on its toll-free number 0800 110 443 or visit www.fsca.co.za.
  • Do not fall for time pressure tactics: A legitimate and registered financial service provider will never pressurise you to capitalise on an opportunity now or lose it for good.
  • Question the platform: If someone asks you to switch to Telegram to pursue an investment opportunity or transact, that should trigger instant alarm bells. Reputable providers will not attempt to transact with you or source your details on Telegram or any social media platform. While you may receive marketing on a platform, transactions should be on legitimate channels such as email, company apps or a website (and you should always verify they are the real thing).
  • Question the requirement to pay in crypto: The same applies if someone asks you to open a cryptocurrency account to transact. A legitimate provider would not do so.
  • Fica first: Any investment in a regulated financial product requires you to go through the verification process required by the Financial Intelligence Centre Act (Fica). If this step is not included, it is another red flag.
  • An annual premium: If a so-called life insurer asks you to pay an annual premium for life cover when you did not request this, it is a red flag. Legitimate providers offer options of monthly, once-off or annual premiums.

Du Toit urges consumers to stay alert and informed and always double check before you invest.

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