Watch out for investment scams

Fraudsters lure you into investing in fake portfolios by guaranteeing high profits with little or no financial risk. The goal is to steal your money, often by building trust and urgency.

Details of the scams

Scammers use fake qualifications or references to entice you. They offer and pay high returns at first, then lure you into investing more money. The business model is often secretive, and returns dry up quickly.

Common investment scams

• Ponzi schemes: Earlier investors are paid with money from new investors, not profits. It collapses when new money stops.
• Pump and dump: Scammers hype up a stock to inflate its price, then sell their shares at the peak and leave others with losses.
• Fake crypto or forex trading: Promises of quick gains through trading platforms that either don't exist or are rigged.
• Unlicensed "financial advisers": Claim to have insider tips or guaranteed strategies but vanish with your funds.
• Impersonation scams: Fraudsters pose as legitimate firms, often using real branding and forged documents.

What you can do

• Be sceptical of investments that guarantee high profits with little or no financial risk.
• Exercise due diligence in choosing investments and the people who you invest with.
• Always research the company or individual.
• Verify licences with regulatory bodies (like the FSCA in South Africa).
• Consult an unbiased third party before investing.

What we do

Always look out for our tips and advice to help you stay safe from these scams - read more on how we help to protect you against fraud.