The Financial Sector Conduct Authority (FSCA) has warned the public that there is a new investment scam featuring deepfake videos of businessman Dr Patrice Motsepe and other well-known entrepreneurs.
The financial watchdog has urged people to be cautious when conducting financial services business with Gold Earnings Hub and Africa Gold Capital.
According to a statement, the FSCA learned the two companies may be providing financial services to the public without authorisation.
Gold Earnings and Africa Gold are offering members of the public investments promising unrealistic returns of 46%, on investments of between R2 000 and R100 000, it says.
“Gold Earnings and Africa Gold are using images and videos involving, among others, Dr Patrice Motsepe, executive chairman of African Rainbow Minerals (ARM). In the deepfake videos, Dr Motsepe promotes the investments offered by Gold Earnings and Africa Gold.
“The videos appear to be fraudulent deepfake videos. ARM has confirmed that neither it, nor Dr Motsepe, have any association or relationship with Gold Earnings and Africa Gold. ARM and Dr Motsepe have condemned the actions of Gold Earnings and Africa Gold, and are considering civil and/or criminal action.”
According to the FSCA, the impersonators are not authorised in terms of any financial sector law to provide financial services to the public.
“To avoid unnecessary risk, the public should refrain from accepting financial advice, assistance, or investment offers from individuals or entities not authorised by the FSCA. Authorised financial services providers must clearly display their authorisation status in their documentation.”
If the authorisation status is not present, it is advised to further investigate before making any payments, it adds.
The FSCA urges the public to be vigilant when investing, as the number of fraudulent schemes is rising, with South Africans losing millions each year to such operations.
Some illegal schemes may appear legitimate, making it crucial to identify warning signs. Key red flags include promises of unrealistic returns and claims that an FSCA licence is unnecessary. In case of doubt, the public is encouraged to consult an authorised financial services provider, it advises.
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