Impersonation investment scams on the rise in SA, says Sanlam

Cape Town - Impersonation scams are rife in South Africa, with recent media articles* citing a marked uptick. One notable scam is fake ‘get-rich-quick’ investment schemes via legitimate-looking groups on the messaging app Telegram. The groups lure South Africans into potentially losing substantial sums. Scammers use the popular messaging app to impersonate reputable financial institutions like Sanlam to trick people into handing over their money. Sanlam urges heightened vigilance.

Helen du Toit, Head of Forensics at Sanlam, says, “One of the most recent scams involving the Sanlam brand targets clients via Telegram - a cloud-based messaging app that lets users send messages, photos, and files. Crucially, the platform is known for its emphasis on privacy, with ‘secret chats’, self-destructing messages, and the option to delete messages with no trace. The Financial Sector Conduct Authority (FSCA) has issued warnings about scammers offering fake investment schemes on the app, usually promising high returns and little risk.

“Remember, a legitimate financial services provider wouldn’t approach clients for business or transactional messaging via a social media app, nor would it request personal information via these channels. It’s critical that people have the confidence to say no to scammers by learning to spot red flags and report them. If it sounds too good to be true, it probably is. Real wealth building takes consistency and time.”

Common Telegram scam tactics

These are some of the ways that scammers target people on Telegram and other platforms:

1. They impersonate financial institutions: Fraudsters create fake groups posing as legitimate financial service providers (FSPs).
2. They use public figures’ identities: Scammers impersonate well-known personalities to appear credible. They then reach out to individuals with ‘amazing’ investment opportunities, with the public figure’s name lending legitimacy.
3. They promise unrealistic returns: These scams often advertise investment plans with guaranteed high returns in a short period. For example, fraudsters impersonating a known investment house claimed investors could multiply their investments by eight times their initial capital within six days.
4. They request crypto payments: Scammers often prefer Bitcoin and other cryptocurrencies to make transactions untraceable.
5. They may fake official documents: Fraudsters misuse logos, FSP numbers, and fake FSCA certificates to appear legitimate.

Why are scams increasing – and why are people falling for them?

Du Toit says scams are rising in South Africa due to a mix of economic hardship, smarter tactics, and digital anonymity. “With rising unemployment, people are more vulnerable to promises of quick financial gain. Offers to ‘double your money in days’ are hard to resist in tough times,” she explains.

She adds that scammers are now highly convincing, using slick Telegram channels, fake testimonials, and images of celebrities or CEOs. “Some impersonators are so convincing they've even fooled friends of real businesspeople, as News24 reported.”

The ease with which people can remain anonymous is another factor in the growth of scams. Telegram’s encrypted chats, private groups, and untraceable usernames create ideal conditions for fraud. “Many victims also aren’t familiar with digital scam red flags – especially older people or those new to crypto and online investing. Scammers often seem to exploit this with scripts designed to create urgency and the fear of missing out,” she says.

How to protect yourself

To safeguard against these scams, Du Toit suggests:

• Verify authorisation: Before engaging with any financial service offering, confirm that the entity or individual offering it, is authorised by the FSCA. You can verify this on the FSCA's official website www.fsca.co.za or contact them directly.
• Be skeptical of high returns: Be cautious of investment opportunities that promise guaranteed high returns with little or no risk. If it sounds too good to be true, it very likely is.
• Avoid unsolicited offers: Be cautious of unsolicited messages or invitations to join investment groups on Telegram or other messaging platforms.
• Do not share personal information: Never share sensitive personal or financial information with unknown individuals or groups online.
• Report suspicious activity: If you encounter a suspected scam, report it to the FSCA. Call their toll-free number 0800 110 443 or visit www.fsca.co.za.
• Don’t fall for time pressure tactics: A legitimate and registered financial service provider will never pressurise you to capitalise on an opportunity now or lose it for good.
• Question the platform: If someone asks you to switch to Telegram to pursue an investment opportunity or transact, that should trigger instant alarm bells. Reputable providers should not attempt to transact with you or source your details on Telegram or any social media platform. While you may receive marketing on a platform, transactions should be via legitimate channels such as email, company apps or website (and you should always verify they are the real thing!)
• Question crypto: The same applies if someone asks you to open a cryptocurrency account to transact. A legitimate provider would not do so.
• FICA first: Any investment in a regulated financial product requires you to go through the FICA verification process. If this step is not included, that’s another warning.
• Charged a premium: If a so-called life insurer asks you to pay an annual premium for life cover where you didn’t request this, that’s a red flag. Legitimate providers offer options of monthly, once-off or annual premiums.

Du Toit concludes, “Sanlam is committed to empowering South Africans to stay safe. Financial security stems from knowing how to protect your wealth. We want everyone to have the confidence to say no to scammers.”

Stay alert. Stay informed. And always double-check before you invest.