The Financial Sector Conduct Authority (FSCA) has issued a warning about fraudsters impersonating asset managers on Telegram to scam users.
Fraudulent groups are unlawfully using the names of Vista Wealth Management, Truffle Asset Management, and Saul Miller, a key individual at Truffle Asset Management, to solicit funds from the public.
FSCA is saying “It was brought to the attention of the FSCA that the individuals behind the Telegram groups are unlawfully using the names of Vista Wealth, Truffle Asset Management, and Mr. Miller to solicit funds from members of the public,”.
The organization is warning investors of fraudsters offering unrealistic investment returns especially through social media channels like telegram.
Vista Wealth and Truffle Asset Management have confirmed no association with these Telegram groups. These firms do not use Telegram or social media for marketing.
The FSCA urges the public to remain cautious and watch for warning signs when dealing with investment offers, including:
- Promises of unrealistic returns.
- Upfront payment requirements.
- Pressure to act urgently.
- Vague investment details.
Fraud is on the rise in South Africa, with a reported 32% increase in incidents and a 54% rise in impersonation fraud victims compared to 2023.
Investment scams have become increasingly sophisticated, using fake platforms and impersonating financial advisers on social media.
The Association for Savings and Investment South Africa (ASISA) has reported a surge in fraudulent activities targeting investment firms.
In 2023 alone, South African life insurers and investment companies detected 13,074 cases of fraud and dishonesty, leading to losses of R175.9 million, a significant rise from R77.2 million in 2022.
The country also losses R17.9 million to ransomware attacks, another cyber threat troubling the country,with recovery costs of R19.44 million.
Investors are advised to verify the legitimacy of financial service providers before engaging in any transactions, remain vigilant against social media scams, and report suspicious activities to authorities.
Telegram notoriously known for illegal activities such as the selling of counterfeit programs, fraud and scamming campaigns, distribution of malware and what have you. This got them to shift their policies regarding privacy, as they now share user data more than ever.
Source: Daily Investor
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