By:Techfinancials

The FSCA suspects these entities of operating without proper authorization, offering investments with implausible returns of 46% on amounts ranging from R2,000 to R100,000.

Fraudulent activity and impersonation

Gold Earnings and Africa Gold have been linked to fraudulent activities, including using deep fake videos featuring Dr. Patrice Motsepe, Executive Chairman of African Rainbow Minerals Ltd (ARM).

These videos falsely portray Dr. Motsepe endorsing their investment schemes. ARM has confirmed that neither the company nor Dr. Motsepe has any association with these entities. Both have condemned the actions and are considering legal action.

Risks of unauthorised services

The FSCA stresses that these impersonators are not authorised under financial sector laws to provide financial services. The public is advised to avoid accepting financial advice, assistance, or investment offers from unverified sources. Legitimate financial services providers must display their authorization status prominently. Absence of this documentation warrants further investigation.

Warning signs of fraudulent schemes

The FSCA warns that fraudulent investment schemes are on the rise, with many appearing credible while defrauding South Africans of millions annually. Key red flags include promises of unrealistic returns and claims that FSCA licensing is unnecessary.