Scam warning for South Africans who use social media

A new study found that South Africans are the most vulnerable to financial scams on Meta platforms, with the majority of finance-related ads analysed being flagged as risky or outright scams.

A recent study by forex broker experts at BrokerChooser scraped the Meta Ads Library and analysed more than 5,000 active finance-related ads to identify the countries where users are most susceptible to this growing wave of online financial deception.

The report found that thousands of fraudulent ads have been allowed to run on Meta platforms: Facebook, Instagram, Threads, Messenger and WhatsApp.

“Investment fraud on social media has surged dramatically over the past three years,” BrokerChooser said. In fact, one in four people who lost money to fraud reported that it began on social media.

Instagram and Facebook were the most frequently reported platforms. However, TikTok and LinkedIn were linked to the highest average financial losses per victim.

BrokerChooser previously found that up to 80% of forex advice given out on TikTok from ‘influencers’ could be potentially misleading.

Their findings were alarming, as the videos lacked major disclaimers. A high volume of videos also focused solely on flaunting wealth and lifestyle, with little to no trading context.

The research revealed that only 6% of forex advice on TikTok encourages viewers to do their own research.

The analysis found that a staggering 80% of forex advice on TikTok was potentially misleading. Only 6%, or 3 in 50 videos, encouraged viewers to do their own research.

According to BrokerChooser, only one in seven videos, or 13%, analysed included relevant disclaimers, such as clarifying the risks involved in forex trading or stating that the content was not financial advice.

This lack of transparency is particularly concerning, given that one in five videos actively promoted or sold a product or service. This raises ethical concerns about the motivations behind the content being shared.

South Africans are at risk

BrokerChooser analysed 13 countries to determine where Meta users are the most at risk of fraudulent ads. These countries are:

• South Africa
• Belgium
• Turkey
• Germany
• United Arab Emirates
• Pakistan
• Spain
• Australia
• India
• United States
• France
• Italy
• United Kingdom

The research revealed that South Africa was the most exposed to dodgy financial ads on Meta, with a staggering 37.50% of ads flagged as outright scams and 62.50% identified as risky.

Belgium, Turkey, Germany, and the UAE were also among the top five nations most at risk from dodgy financial ads. Around 79% to 83% of finance-related ads in these countries were classified as high-risk.

“South Africans are the most vulnerable to financial scams on social media, with all finance-related ads analysed on Meta identified as either risky or outright scams,” BrokerChooser said.

Of these, over a third (37.50%) were confirmed scams, while around three in five (62.50%) were deemed high-risk. “This reflects South Africa’s broader cybersecurity challenges as the country ranks fifth globally for cybercrime density.”

BrokerChooser’s analysis also revealed that scam ads in South Africa often encourage contact via WhatsApp or joining WhatsApp groups. This is a tactic frequently used to bypass platform moderation.

Exploiting personal messaging apps is a common strategy used by fraudsters worldwide. By directing users to WhatsApp, Telegram and Instagram, they can bypass platform detection.

Similar trends have also been noted by South Africa’s major banks and financial institutions, which have cautioned consumers to be wary of social media and investment scams.

Earlier this year, PSG Financial Services’ COO of distribution, Johannes Theron, warned that tempting online adverts offering unrealistic investment returns have flooded social media in recent years.

“Many of these schemes operate without oversight, exploiting gaps in regulation to appeal to those desperate for rapid financial gain,” he said.

“Compounding this risk is the role of unqualified brand ambassadors and ‘finfluencers’, who promote these financial products as personal recommendations without any skin in the game.”