Over the last few months, the Financial Sector Conduct Authority (FSCA) has issued several warnings against fraudulent companies and individuals that it believes are putting people’s hard-earned money at risk.

None of these companies or individuals is a registered service provider, and some are even providing fake registration numbers or impersonating existing legitimate businesses.

Fake funeral insurance

TFR Funeral Services is providing funeral insurance, however they are not registered to sell insurance and the policies they are selling are not underwritten. They are possibly either self-insuring or simply pocketing the premiums. When you take out insurance, make sure you check who the underwriter is. There should be a registered South African insurance company behind the product.

Using fake FSP license numbers

Several of the FSCA’s warnings relate to fraudulent companies that claim to be registered with the FSCA but are providing fake Financial Services Provider (FSP) numbers. Always check the FSP number on the FSCA website – don’t assume that if a company provides a number that it is legitimate.

Livestock Capital Funds provided a client with a document purporting to be an FSCA license, with FSP number 98832. According to the FSCA, this license number does not exist. The FSCA tried to contact Livestock Capital but these attempts were unsuccessful.

Capital Pro is offering the South African public access to its online platform to trade in forex and contracts for difference (CFDs). Capital Pro provided a client with a document purporting to be an FSCA license issued to it, with FSP number 164384. According to the records of the FSCA, this license number does not exist. Again, the FSCA’s attempts to contact Capital Pro for comment proved unsuccessful.

Unregistered investment platforms

There are many entities claiming to offer financial services, especially around alternative investments like cryptocurrency. They attract the attention of the investor by offering unrealistically high returns. Be very wary of any investment that offers unrealistic returns, especially if it is not registered with the regulator.

Prudential Investment Services solicits investments from members of the public with the promise of unrealistic returns. On its Facebook page, Prudential Investment Services offers financial advice and intermediary services in respect of life insurance, retirement plans, bitcoin, forex, and shares. Prudential Investment Services is not authorised as a financial services provider to provide financial advisory and intermediary services. The FSCA made attempts to contact Prudential Investment Services without success.

Beyond FX is offering the South African public access to its online platform to trade in forex and contracts for difference (CFDs). In addition, Beyond FX’s website indicates that it is globally regulated and licensed to provide services in 27 countries, including South Africa. However, the FSCA has confirmed that Beyond FX is not authorised as an FSP in terms of the Financial Advisory and Intermediary Services (FAIS) Act to provide financial advisory and intermediary services. Beyond FX is also not registered as an over-the-counter derivative provider in terms of the Financial Markets Act. The FSCA made attempts to contact Beyond FX, without success.

Impersonating a real company

There has been an increase in the number of criminal syndicates pretending to represent legitimate firms. If you are unsure, go to the FSCA website and obtain the correct contact details for the company. Check it is the same as the details you have been provided by the service provider and directly contact the company listed with the FSCA to confirm.

Aluma Private Equity Fund 2 is a WhatsApp group on social media which has a similar name to Aluma Capital which is a licensed FSP. The WhatsApp group is advertising the scheme to vulnerable clients promising unrealistic and high returns, impersonating Aluma Capital (Pty) Ltd in the process.

AVA Invest or AVAINVESTMGOAL and “Gugu Mseleku” are using the FSP number which belongs to Ava Capital Markets. Ava Trade Capital is an authorised FSP and has advised that they have no relationship with AVA Invest. The FSCA also received information that a person by the name of Gugu Mseleku is using the Facebook platform to lure people to invest with AVA Invest.

How to find out about fraudulent companies

You can find a list of all warnings on the FSCA website. But remember, it takes time for these companies to come onto the radar of the FSCA. Just because they have not been reported, does not mean they are legitimate.

If you have any suspicion about whether the company you are dealing with is legitimate, you can contact the FSCA on its toll-free number 0800 110 4432 or you can do an online search for the service provider on the FSCA website.

This article first appeared in City Press.