Six alleged bogus investment scammers and 25 call-centre agents were arrested in Johannesburg on January 27, following a multi-agency operation targeting an international investment fraud syndicate.

The arrests were carried out by the Directorate for Priority Crime Investigation (Hawks) in Gauteng, working alongside several local and international partners, including Interpol, Sars Forensic Investigation, the South African Banking Risk Information Centre, Standard Bank, and First National Bank.

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The suspects, aged between 38 and 61, were arrested for contravening the Financial Advisory and Intermediary Services Act 37 of 2002.

According to the Hawks, the operation was the culmination of an investigation launched in 2022 by the Gauteng Serious Commercial Crime Investigation unit.

The probe was initiated after 43 victims from Australia came forward with statements detailing how they had been defrauded through online investment schemes.

Investigations revealed that the suspects allegedly operated fraudulent boiler-room call centres in Gauteng and the Western Cape, advertising bogus investment opportunities on various social-media platforms. Victims, many of whom were close to retirement and had significant savings, were lured with promises of high returns and financial security.

Victims were reportedly persuaded to make small initial investments, which falsely showed impressive returns. Communication would then continue via platforms such as WhatsApp, Skype, Zoom, and Messenger, with call-centre agents encouraging victims to invest increasingly larger amounts.

The Hawks allege that the syndicates frequently changed premises every three to six months and registered multiple companies to conceal their activities.

These entities were also allegedly used to open bank accounts and lease properties where the fraudulent operations were conducted.

To create the appearance of legitimacy, the suspects allegedly used professional-looking websites, fake client portals, fabricated press releases, false testimonials, and sophisticated branding.

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The criminal activities are believed to have affected victims in several countries, including Australia, the United Kingdom, the United States, Canada, and New Zealand.
More than 40 victims are known to have suffered financial losses amounting to millions of rand.

The operation also formed part of Interpol’s global Operation Jackal, which focuses on combating online scams and transnational financial crimes. A senior representative from Interpol’s International Financial Crimes and Anti-Corruption Directorate, based in Lyon, France, was deployed to support the operation.

Hawks’ spokesperson Lieutenant Colonel Christopher Singo said the arrests demonstrated the seriousness with which authorities were treating cyber-enabled financial crimes.

“These arrests send a clear message that South Africa will not be used as a haven for transnational fraud syndicates. Through strong collaboration with international law-enforcement agencies and private-sector partners, we will continue to pursue those who exploit technology to defraud victims across borders,” Singo said.

The suspects are expected to appear in the Palm Ridge Specialised Commercial Crimes Court on January 28.
Investigations into the matter are ongoing.

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