The Financial Sector Conduct Authority (FSCA) has warned the public about an individual posing as a representative of PSG Invest who is allegedly using social media and WhatsApp to solicit small investment deposits while promising high returns.
According to the regulator, the individual, identifying himself as Sizwe Mbelu, reportedly contacts potential investors via WhatsApp and other social media platforms, urging them to deposit R1 000 with the promise of significant returns.
PSG Invest has confirmed that it has no affiliation with the individual and has denied any connection to the scheme.
ADVERTISEMENT
CONTINUE READING BELOW
The FSCA said it verified that there is no relationship between the company and the individual, who also failed to respond to the regulator’s queries regarding the allegations.
The regulator urged the public to exercise caution when considering unsolicited investment or trading offers, particularly those communicated through social media platforms.
Among the red flags that may signal an investment scam are the following:
- Promises of unrealistic or exaggerated returns
- Investment offers promoted through social media platforms
- Requests for upfront payments
- Requests for additional payments to release funds or returns
- Requirements to pay for training or mentorship programmes
- Claims that investors must act urgently or risk missing out
- Vague or unclear information about the investment product
The FSCA also added that fraudsters increasingly use online platforms to promote fraudulent investment schemes, costing South Africans millions of rand each year. These illegal operations are often designed to appear legitimate, making them difficult for unsuspecting investors to identify.
*Phenyo Selinda is a Moneyweb intern.
#FSCA #warns #PSG #Invest #impersonator