Beware fraudsters posing as financial service providers in SA
Fraudsters are continuously reinventing themselves, creating an impression that they are authorised financial service providers linked to a legit service provider, warns Momentum.
The FSP highlighted that various methods are available to potential customers to assist in verifying the details provided by an individual presenting him/herself as an authorised FSP or representative.
More frequently, ordinary South Africans are losing their money by being misled by rogue individuals or con artists, cyber crooks, fraudulent Ponzi or pyramid schemes and those misrepresenting themselves as financial service providers (FSP) or authorised representatives of an FSP.
These incidents work to erode the trust between members of the public and legal service providers.
Momentum warned potential targets to be particularly vigilant when they are approached by people in person or online who make grandiose promises about quick and easy ways to make money.
“Fraudsters are continuously reinventing themselves, creating an impression that they are authorised financial service providers linked to a legit service provider. Bogus stationary, with false logos similar to legitimate entities add to the appearance and credibility of the individual purporting to present a legitimate company,” Momentum said.
In this regard, the public is reminded that various methods are available to them to assist in verifying the details provided by an individual presenting him/herself as an authorised FSP or representative. All entities or representatives providing financial services in South Africa must be registered with the FSB.
The verification of a FSP license number is possible via the FSB website or a phone call to the presented FSPs’ compliance officer is recommended prior to engaging with a person representing an entity.
Extra caution is further recommended when transacting via email and where a financial institution requests you to divulge your personal details, bank account details, log-in credentials or passwords.
Momentum advised potential targets to take the time to familiarise themselves with the types of fraudulent conduct and email phishing tactics that are aimed at luring one into transactions.
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