Investment scams are becoming increasingly sophisticated, with fraudsters using social media platforms and messaging apps such as Telegram and What’s App to target unsuspecting investors. The Financial Sector Conduct Authority (FSCA) has issued public warnings about criminals impersonating authorised financial services providers (FSPs), including Sanlam Investments to lure victims with false promises of guaranteed returns.
How these scams work
Scammers create fake profiles impersonating legitimate financial advisers or Amplify representatives. They often use stolen photos, professional-looking graphics and fabricated testimonials to build credibility. Here’s their typical approach:
Identity theft
Fraudsters set up convincing fake profiles using investment professionals’ information and images on platforms such as LinkedIn, What’s App or Telegram.
Unrealistic promises
They claim to offer guaranteed returns of 10 – 20% monthly or higher, often packaged as “exclusive” opportunities that no legitimate investment can match.
Pressure tactics
To prevent careful consideration, scammers create urgency with lines like “limited time offer” or “only five spots remaining”.
Unofficial channels
As highlighted by the FSCA, fraudsters often push victims onto Telegram, WhatsApp or personal email to avoid detection and accountability.
Red flags to watch for
If an opportunity sounds too good to be true, it probably is. Legitimate investments carry risk – no financial adviser can guarantee fixed high returns. Look out for these warning signs:
- Promises of guaranteed or unusually high returns
- Requests for upfront payments before you invest
- Pressure to act immediately without time to research
- Insistence on using Telegram, WhatsApp or other unofficial channels – these are not channels that we use. Our official documentation will be password-protected
- Poor grammar and unprofessional communication
- Requests for sensitive details such as passwords, PINs, or full banking information
- Vague or evasive explanations of what your money is invested in
- “Client testimonials” that cannot be verified and may be fabricated
How to protect yourself
Verify credentials
Check an adviser’s license status with the FSCA before engaging. You can:
- Call the FSCA toll-free on 0800 110 443
- Search for an authorised financial institution by license category on the FSCA website: https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-Entities-Persons.aspx
- Do an online search for a financial institution that is an authorised FSP in terms of the FAIS Act: https://www.fsca.co.za/Fais/Search_FSP.htm
Use official channels
Always contact Amplify directly through our official website or phone numbers. We will never approach you via any social media channel.
Research thoroughly
Take the time to research any opportunity. Never allow yourself to be rushed into transferring funds.
Trust your instincts
If something doesn’t feel right, pause. Seek a second opinion before acting.
What to do if you’ve been targeted
If you believe you’ve been approached by a scammer or have already sent funds:
- Stop all communication immediately
- Do not send more money or share further personal details
- Document all interactions, including screenshots, messages and emails
- Report the case at your local police station and relevant regulatory bodies
- Contact your bank if you’ve made a transfer
- Report the scam to Amplify
- Warn family and friends so they don’t fall victim to the scam.
Report suspicious activity
Help us protect the community by reporting potential scams. Your reports are treated confidentially.
Email: info@amplify.co.za