Dealing with investment scams
An investment scam is when you are tricked into handing over money in the belief that you are making an investment. You may be contacted out of the blue about this investment, see it advertised online, be told about it by someone online, or be contacted in a social media post comment section about an investment opportunity. There will likely be urgency around making the investment, and the promise of returns is likely to be too good to be true.
They may also have asked you to keep the investment quiet. Usually the investment opportunity does not exist, or the investment does exist but the criminal takes the money and never invests it. The criminal may have a website and investment platform that looks legitimate. It might even have a section where you can see your investment and apparent profits. You may also have an "Account Manager" messaging you about your investment. The criminal is likely to disappear with the money or ask you to pay taxes or fees before you can withdraw your profits.
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Investment scams - do this first!
Stop all communication with the criminals – Do not provide any more information or money. Do not respond to any further messages.
Report it to SAPS – If you have lost money, it is likely that a crime has been committed. Report the incident to the South African Police Service (SAPS).
Contact your bank immediately – Explain what has happened. If the payment was recent, your bank may be able to stop or recover the transaction, although this is not guaranteed.
Change your passwords – If you logged into any accounts as part of the scam or shared passwords, change them immediately. If you reused the same password elsewhere, change those as well. Use strong, unique passwords for each account.
Approaches to dealing with investment scams
If you allowed remote access to your device, scan it – If the criminal asked you to install software so they could access your computer or device, uninstall the software as soon as possible and run a reputable antivirus scan.
Try to recover your money – Speak with your bank as soon as possible to understand whether any recovery options are available. Unfortunately, recovery is not always possible.
Gather all communications from the criminals – Save screenshots of messages, emails, transaction records, usernames, wallet addresses (where relevant), and any other evidence. If possible, create a timeline of what happened and when.
List all information you have shared – Review what personal or financial information you disclosed. Change passwords immediately where necessary. If banking or card details were shared, notify your bank. Be cautious of future phishing attempts if your email address or phone number was shared.
Contact any impersonated companies – If the scammer claimed to represent a legitimate company, contact the organisation using its official contact details. If you have an account with them, ask them to review your account security and recent activity.
Report the provider to the Financial Sector Conduct Authority (FSCA), where appropriate – Reporting suspected investment scams may help protect others from becoming victims.
Check your credit profile – Review your credit record for accounts, applications or enquiries you do not recognise.
Protect your identity – If you shared your South African ID number or identity documents, consider contacting the Southern African Fraud Prevention Service (SAFPS) about protective registration and monitor your credit profile for signs of identity fraud.
Beware of recovery scams – Once you stop responding, criminals may contact you pretending to be the police, your bank, a lawyer or a recovery service offering to recover your money for a fee. Do not engage with these offers.
How do I reduce the chance of being caught up in an investment scam?
Don't be rushed – If you are being pressured to invest before you are ready, do not invest. Urgency is a common sign of a scam.
Be suspicious of guaranteed returns – No legitimate investment can guarantee high returns with little or no risk. Claims such as "guaranteed profits", "risk-free investment" or "double your money" are common warning signs of a scam.
Trust your instincts – Many victims felt something was not right before investing but proceeded anyway. If something feels wrong, take time to verify before making any payment.
Check the website – Research the website carefully. Look for independent reviews and signs that the business is legitimate.
Contact the company directly – If someone claims to represent a well-known financial institution or investment company, contact the organisation using the official contact details published on its website to confirm the investment is genuine.
Check the provider with the FSCA – Before investing, check whether the company or individual is authorised by the Financial Sector Conduct Authority (FSCA), where applicable. Also check whether the FSCA has issued any public warnings about the provider or investment. Remember that authorisation does not guarantee that an investment is legitimate or risk-free.
Do your own research – Search online for the company, investment opportunity or individual. Other victims often report scams publicly.
Speak to someone you trust – If you are unsure, discuss the opportunity with someone before investing.
Be careful of unsolicited messages – Treat unexpected investment offers with caution. Instead of responding, independently find the organisation's official contact details and verify the opportunity.
Be especially cautious of investment opportunities promoted through WhatsApp groups, Telegram channels, social media comments or dating platforms – Scammers commonly use these channels to build trust before encouraging victims to invest.
Maintain good online security and privacy – Strong passwords, multi-factor authentication and good online security practices can reduce your risk of being targeted by scammers.
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