Capitec warns its clients about scammers trying to steal their money

Capitec has warned its customers about scammers posing as investment experts with glamorous lifestyles to steal their money.

The scammers typically share tales about exceptional returns, tricking people into believing they will make a lot of money.

“Beware, as some scammers pay initial returns, tricking you into investing more, and then they suddenly disappear,” Capitec warned.

It added that other scammers will disappear as soon as a person makes the first deposit into their account.

Capitec warned its clients to be suspicious when they see promises of very high returns in a very short time, like doubling or tripling your money in hours or a few days.

These promises typically accompany the promotor’s media profile, showing exotic overseas travel destinations, expensive cars, and designer clothes.

After a person shows interest, scammers create urgency and limit the amount of time a person may spend researching and thinking about the investment.

Capitec urged clients to be careful when they see professional-looking investment websites or crypto exchanges with little to no information about the company.

Another warning sign is when it is difficult to understand how the investment will make returns. Legitimate investment opportunities always clearly state how they make money.

Capitec provided a few tips to its clients to ensure they do not lose money through investment scams.

• Don’t send money to anyone who contacts you on social media asking you to invest.

• Research and check if the investment platform is licensed with the Financial Services Conduct Authority (FSCA).

• Avoid sharing personal information until you verify that the investment is legitimate.

• If promoters promise big returns without clarifying that there are significant risks, you should avoid them at all costs.

The FSCA also urged South Africans to check whether an entity or individual is authorised to provide a specific financial product, service or advice using the methods below.

• Calling this toll-free number: 0800 110 443 

• Conducting an online search for authorised financial institutions by licence and product category by clicking on this link.

• Conducting an online search to verify whether an entity is an authorised FSP in terms of the FAIS Act by clicking on this link

If a company is not registered with the FSCA, people should avoid them at all costs.