A sophisticated investment scam has recently emerged in South Africa, leveraging deepfake technology to impersonate top financial officials and mislead the public. Circulating primarily through WhatsApp, the fraudulent video features a digitally fabricated version of Financial Sector Conduct Authority (FSCA) Commissioner, Mr. Unathi Kamlana, supposedly endorsing an artificial intelligence-based trading platform.
The FSCA issued an urgent warning to the public, clarifying that the video is entirely fake and that the regulator has no association with the platform being promoted reportedly named “NBSG Securities” or “Nedbank Securities.” The platform promises highly unrealistic returns, with claims of 20–30% profit margins, raising serious red flags.
FSCA Denounces Misuse of Its Image and Logo
In statements released across its official channels, including X (formerly Twitter) and LinkedIn, the FSCA condemned the video, labeling it as a deliberate and unauthorized misuse of its identity and that of its Commissioner. The agency emphasized that neither the FSCA nor Nedbank has any involvement in promoting the trading platform being showcased in the deepfake.
“This is a scam,” the FSCA stated plainly. “The public should disregard any videos or messages using our or Nedbank’s logos without authorization. These are attempts to deceive and defraud.”
Surge in Similar Digital Scams
This is not the first incident of its kind. According to the FSCA, scams using fake affiliations and AI-generated content have been increasing. Just weeks earlier, another fraudulent entity going by the name “J532-NBSG” falsely claimed a partnership with Nedbank and aggressively pushed investment opportunities via Facebook and WhatsApp.
These impersonations are becoming more elaborate, employing deepfake technology to simulate endorsements by well-known individuals and respected institutions. This tactic is designed to make the scams appear more legitimate and increase their chances of duping unsuspecting victims.
Legal Risks and Public Caution
The FSCA is reminding the public that pretending to represent a legitimate business or regulatory body to solicit money is not just unethical it’s illegal. Those responsible for such impersonations could face criminal charges under South African law.
In light of these ongoing threats, the regulator is urging citizens to stay alert, especially when receiving investment pitches through social media or instant messaging platforms. The FSCA continues to monitor these scams closely and is working to identify those behind them.
Crackdown on Unauthorized Trading Signal Services
As part of its broader effort to clean up the financial landscape, the FSCA also reiterated that providing trading signals especially those tied to online or AI-based platforms requires a proper license. In regulations clarified last year, the agency made it a criminal offense to distribute or sell trading signals without authorization.
This move is part of a larger strategy to protect retail investors from being misled by unlicensed operators, particularly in the forex and CFD trading sectors, where scams have been rampant.
Final Word
The FSCA’s warning serves as a stark reminder that not all that glitters is gold especially in the world of digital finance. Investors are advised to verify the legitimacy of any investment opportunity and avoid offers that promise unusually high returns with minimal risk. If something sounds too good to be true, it probably is.
