FSCA warns of rising impersonation scams involving EasyEquities

The Financial Sector Conduct Authority (FSCA) has issued a strong warning to the public about "scammers" pretending to be employees of the low-cost investment platform EasyEquities.

This comes after the financial watchdog received a report from Purple Group Ltd, the parent company of EasyEquities, indicating a rise in impersonation incidents where fraudsters claim affiliation with EasyEquities on social media platforms.

"These individuals lure unsuspecting members of the public by promising high investment returns and then instruct them to deposit funds into personal bank accounts. Once the funds are deposited, victims are asked to pay additional amounts under false pretences, such as "withdrawal fees," the financial watchdog said.

"These individuals are not employed by or associated with EasyEquities, and such activities are not authorised or endorsed by the firm".

The FSCA has also urged South Africans to exercise caution and always to verify whether a financial services provider is properly licensed.

The financial watchdog recommends that the public verify:

• Whether an entity or individual is authorised by the FSCA to provide financial products and services, including investment advice.
• What category of advice the person is registered to provide, as some individuals are only authorised to offer basic advice for low-risk products but then promote more complex and high-risk investments.
• That FSP number used by the individual or entity matches the registered name of the financial services provider (FSP) on the FSCA’s database.

The financial watchdog added that verification can be done via their toll-free number 0800 110 443, or by using their online search tools available on the official FSCA website.

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