JSE launches new tool to fight scammers

With scams on the rise, the JSE has launched a new free tool that will allow investors to check whether the financial professionals they deal with are credible.

The stock exchange announced today that it has launched its ‘Verify a Broker’ Tool.

“Many scammers target people who are looking to invest and grow their money. These fraudsters often promise big profits with little or no risk, misleading people into putting their money into schemes that sound too good to be true,” it said. 

“Recognising this risk, the JSE has introduced ‘Verify a Broker’, an online tool designed to help people confirm if the stockbrokers and financial service providers they deal with are real and credible.” 

This tool will allow users to make safer investment choices by ensuring they deal only with legitimate professionals and companies.

Stockbrokers are professionals who provide support with the buying and selling of stocks on markets like the JSE. 

They can be essential for anyone looking to invest in shares because they have the expertise and tools to carry out trades effectively. 

Alongside stockbrokers, there are other types of financial service providers who offer a variety of financial services.

These include financial advisors, fund managers, and insurance brokers, each playing a unique role in helping manage investments. 

The ‘Verify a Broker’ tool confirms the authenticity of these various financial experts, ensuring they are legitimate.

It works by providing a consolidated view of the JSE’s stockbroker database from the database managed by the Financial Sector Conduct Authority (FSCA). 

Every financial services provider, including stockbrokers, must be registered with the FSCA to operate legally. 

Therefore, by searching using the organisations’ name or financial services provider number against this database, the tool ensures that the financial professionals investors are considering are officially recognised and meet all regulatory standards.

“The tool is easy to use and helps everyone to make sure their financial professionals are credible,” said the JSE’s head of retail and business enablement Nongcali Rubushe. 

“We want South Africans to feel confident and informed when making investment decisions with their hard-earned money. This tool makes the investment process more transparent and safer.”

How to identify a scam

The JSE explained that scammers often rush people to invest urgently, pressuring them not to miss out on a chance to earn big profits from a “guaranteed” investment. 

One common trick is the advance fee scam, where fraudsters ask for money upfront, promising larger profits later. 

Another scam is telemarketing fraud, where scammers pretend to be employees or consultants from the JSE to fool people over the phone. They also create fake JSE profiles on social media and websites to steal money or personal information.

The JSE or any of its representatives will never call to get your personal information or ask you to invest money over the phone. 

The only way to trade directly on the JSE is through an authorised stockbroker.