South Africa has seen a worrying rise in fraudulent investment schemes, many of which lure victims with promises of high, fast, and guaranteed returns. Real investors know that if it sounds too good to be true, it probably is.
Scams often appear in the form of:
- Crypto platforms offering 10–20% monthly returns
- Forex trading schemes with fake testimonials
- “Investment clubs” or WhatsApp groups promising overnight success
- Unregulated mining or real estate ventures with little transparency
These scams prey on urgency, social proof (often via influencers or community leaders), and poor financial literacy.
To protect yourself:
Watch for red flags: No audited financials, unrealistic returns, vague documentation, or pressuring tactics.
Always verify regulation: Check whether the company or advisor is registered with the FSCA.
Research the business model: Understand how returns are generated—legit investments don’t rely on recruiting new members.