About a year ago I was having coffee with an acquaintance who works in the financial industry. He is knowledgeable and well informed, so I was surprised when he told me about this amazing forex fund that he had invested in which was making him a...
Beware Bitcoin scamsters
As the returns from Bitcoin and other cryptocurrencies hit stratospheric levels, Bitcoin scamsters have crawled out of the woodwork to take advantage, as the lure of big profits makes people less cautious and more willing to hand over their money...
Ask the right questions before buying trading software
*This content is brought to you by Sanlam iTrade. Share investor Peter Imrie shares his story of being nearly ‘conned’ by a company selling trading software. In many cases the only ones who make money out of these computer-based trading programs...
How to avoid forex trading scams
Daichi Hoang is the webmaster of Best Forex Brokers based in Sydney, Australia. He provides the following advice to help traders avoid risky forex scams and understand the true merits of forex trading. If you are one of the many people in South...
Why we fall for investment scams
Our need to believe in miracles and magic makes us susceptible to tricksters. Listen to Maya discussing this topic on Classic FM with Tamara LePine Williams I was recently watching the Carbonaro Effect, a TV show where a magician plays practical...
Reader falls victim to Profit Trading forex scheme
Des wrote to City Press after being defrauded by forex trading company Profit Trading, a business that claimed to invest clients’ money into an automated forex trading system. “I am one of those investors who had taken every little cent I had and...
Eight digital banking scams to look out for
As access to banking services through digital channels continues to grow, so does the need to protect consumers against the prevalence of online banking fraud. Yolande Steyn, Head of Innovation at FNB says, “We view security as an integral part of...
The story of a scam
Almost every week we receive emails from people who have been caught out in a scam. There are so many rogues out there using charm and manipulation on desperate people looking for better returns. Tammy is one such victim and she kindly, and...
Is MiBiz too good to be true?
There is a big difference between knowingly investing in a high-risk technology business and being sold misinformation. I recently wrote about a group of companies: AllQuotes, BuyDirect and MiBiz, which fall under a parent company called FinGroup....
Investors claim fraud in passive income scheme
Insiders raise the alarm over the business practices of AllQuotes and BuyDirect. When one receives anonymous tip-offs about unethical business practices, there is always the concern that the information is accurate and not just a disgruntled...
Previous Articles
Why pyramid and Ponzi schemes are doomed to fail
By Mike McDougall, CEO of the Actuarial Society of South Africa Faced with empty wallets and rising costs, thousands of South Africans are placing their faith in ‘get rich quick’ schemes that lure desperate consumers with promises of unrealistic investment returns....
Loan scams continue
Tebogo writes: I applied for a R200Â 000 loan from a company called Blue Financial Services. They told me the loan was approved and I had to pay a R200 administration fee, which I did. Then they sent me a lawyers letter requiring an amount of R3Â 750 for cost of...
How to avoid buying into hype
When looking at investment opportunities, it isn't always that easy to separate out the sizzle from the steak. What do Bernie Madoff, Barry Tannenbaum and Sharemax have in common? They started as credible organisations run by known people – people who also knew how to...
Hundreds of South Africans fall victim to loan scam
It was only when Patricia received a call from Wonga’s head of communications that she realised she had been the unwitting victim of a phising scam that has so far conned over 200 people into parting with their money. Two weeks ago Patricia received an SMS from – what...
It’s annual tax phishing season
With tax filing season upon us, the annual tax-related cyber-fraud feeding frenzy has begun, warns Jonas Thulin, Security Consultant at Fortinet. "The Receiver of Revenue, financial institutions and security firms have been issuing the same warnings every tax season...
Personal loans: beware of scams
As the cost of living continues to rise, you may be tempted to take out a personal loan. Maybe you want to renovate your home or make some changes before the chill of winter sets in. Whatever your reason, make sure that you know what you are getting into. Mandla...
How a boiler room scam works
If an overseas broker calls you out of the blue to sell you shares, you don’t need to ask - it is a scam. Two months ago Ross received a call from a trader supposedly working for a Shanghai-based stockbroking firm. Ross was told that he had been identified as a...
Investment scam: If it seems too good to be true, it usually is
A reader alerts us to a new scam “I was making some research on investments and come across the company called Zantech Trading. They say if I invest from R10 000 once off I will get 25% dividend of the capital back for 12 months. In other words I pay R10 000 once off...
How do you know it is a ponzi scheme?
PODCAST The recent Western Cape Relative Value Arbitrage Fund (RAVF) scandal that led to suicide shooting of Julian Williams by his associate, Herman Pretorius, is estimated to have lost investors around R1.8 billion. While investors, and financial advisers who...
Tow-truck scams to watch out for
Seeing tow trucks parked at my local intersection recently reminded me of a scam whereby tow-truck drivers dupe unsuspecting accident victims into allowing them to tow the victims' vehicles. The scam involves the driver telling you he will call your insurance provider...