The Financial Sector Conduct Authority has warned consumers to be wary of using financial platforms that feature deep-fake images and videos of high-profile people
The Financial Sector Conduct Authority (FSCA) has warned consumers to be wary of using financial platforms that feature deep-fake images and videos of high-profile people, including President Cyril Ramaphosa and business mogul Patrice Motsepe, to punt their products to unwitting investors.
The financial watchdog issued the public warning without naming the specific platforms it said were using deep-fake images and videos of people such as Ramaphosa, Motsepe, SABC anchor Leanne Manas and deputy president Paul Mashatile.
“The FSCA warns the public to be cautious when conducting financial services business with investment platforms claiming to be associated with Dr Patrice Motsepe and Mr Cyril Ramaphosa,” it said.
It had learned that the platforms might be providing financial services to the public without authorisation, with investors, for example, offered “unrealistic” returns of between R13 000 and R17 000 a day, on an investment of R4 500.
“In one of the deep-fake videos, Dr Motsepe is seen promoting the investments offered via the investment platform and Mr Mashatile is seen confirming that the platform is authorised and that investors will receive returns. In another video Mr Ramaphosa is seen promoting investments and guaranteed returns,” the FSCA said.
“It must be noted that the individuals behind the platforms are not authorised in terms of any financial sector law to provide financial services to the public. The individuals behind the platforms failed to respond to FSCA queries.”
It said to avoid risk, members of the public should refrain from accepting financial advice and assistance, and investment offers, from individuals or entities not authorised by the FSCA.
“Authorised financial services providers must clearly display their authorisation status in their documentation. If this is not present, it is advised to further investigate before making any payments,” it said.
The FSCA urged consumers to exercise caution when considering investment or trading offers on social media platforms or any unsolicited offers. Before investing, consumers should verify whether an entity or individual is authorised by the authority to provide financial products and services and to give advice about how to invest, it added.
The watchdog said it was also important to verify what category of advice a person is registered to provide, as there are instances where companies or people are registered to provide basic advice for a low-risk product and then offer advice on far more complex and risky products.
In addition, it was vital to check that the financial service provider (FSP) number advertised or used by an entity or individual offering financial services matches the name of the FSP on the FSCA database.
Consumers can confirm the status and FSP number of a service provider or a person that claims to be an authorised service provider by calling 0800 110 443 (toll free) or by conducting an online search for authorised financial institutions by license category on the FSCA website here and here.