JSE fraud warning

The JSE warned consumers to be weary of deep fake videos of JSE executives promoting fraudulent investment schemes.

On 9 July, the JSE issued an urgent alert, cautioning the public about fraudulent videos circulating on Facebook and other social media platforms.

These videos falsely feature JSE CEO, Leila Fourie, and director of information services, Mark Randall, promoting fraudulent investment schemes.

“These videos are scams and are spreading dangerous misinformation aimed at defrauding members of the public,” the group said. “The JSE is actively working with relevant platforms to remove the videos.”

The JSE explained to Daily Investor that scams are becoming more sophisticated, and deepfakes are not the only fraudulent content involving the group.

“There are also numerous WhatsApp and Telegram groups sprouting everywhere posing as authorised JSE investment channels, which is false,” the company said.

There are also investment Apps that are posing as the JSE’s Apps. “It’s absolutely critical for people to know that the only want to invest on the JSE is via an authorised stockbroker or Financial Services Provider (FSP).”

According to the JSE, there are a number of telltale signs consumers can look for to identify whether a video is an investment scam. These are:

• Videos or voice clips circulating outside official JSE channels.
• Unusual speech patterns, facial expressions or poor syncing.
• Messages pressuring you to invest or share personal data.

“Importantly, people need to know that no JSE employee, including JSE executives or board members will provide investment advice,” the company said.

“The JSE will also never request personal information or financial contributions via social media platforms. The only way to invest on the JSE is through an authorised JSE Member or Broker.”

Addressing the growing threat

When consumers have fallen victim to a scam impersonating the JSE, the group said that they should take the following steps:

• Report the matter to the JSE at [email protected]
• Report to the South African Police Service (SAPS) and file a criminal case at your nearest police station. Include all evidence and details of the scam.
• Report to the Southern African Fraud Prevention Service (SAFPS) – they help prevent identity fraud and track scam-related activity.

The JSE explained that it has also been implementing measures to address the increase in fraudulent investing content.

“Insofar as the unauthorised use of the JSE’s name and trademarks is used in scams or fraudulent activities, we actively report these to the social media platforms as unauthorised use of JSE trademarks for removal/takedown.”

“In instances where the JSE believes there is a contravention of the provisions of the Financial Markets Act, the JSE reports these to the Financial Conduct Sector Authority (FSCA) for investigation.”

The JSE has also created educational content, which is available on its website’s fraud and scams prevention page. This includes a list of various scams and how consumers can identify them and protect themselves.

Consumers can find a comprehensive list of accredited JSE stockbrokers on the company’s official website under the ‘Find a Broker’ section.

“Additionally, we have a Verify a Broker tool that people can use to verify whether the broker they are using is an authorised member/stockbroker.”

Unfortunately, the scams impersonating the JSE aren’t the only fraudulent investment content available on social media.

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 see which countries users were the most susceptible to financial deception.

The research revealed that South Africa was the most exposed to dodgy financial ads on Meta platforms, including Facebook, Instagram, Threads, Messenger, and WhatsApp.

A staggering 37.50% of ads were flagged as outright scams by BrokerChooser, and 62.50% were identified as risky.

The JSE urged South Africans who engage with investing content on social media to be vigilant and exercise caution.

“When in doubt, they should pause, assess or do some research and verify that they are dealing with reputable and authorised stockbrokers or FSPs before making any investment decisions.”