Moneyweb’s test registrations on fake ads triggered immediate calls from AfriMarkets agents and the automatic opening of trading accounts.
AfriMarkets continues to benefit significantly from fake advertising on social media, using celebrity billionaires and well-known personalities to market investment platforms that promise returns exceeding R500 000 per month on a nominal one-time investment of as little as R4 800.
Moneyweb has been investigating the origin and beneficiaries of these fake ads since early last year. While the source of the ads remains unidentified, Moneyweb has found that Banxso and AfriMarkets are direct beneficiaries.
A recent Moneyweb investigation, where several Moneyweb aliases registered on fake ads and were contacted by AfriMarkets agents, confirmed once again that the platform benefits from these ads and captures individuals’ registration information on its platform.
AfriMarkets is licensed by the Financial Sector Conduct Authority (FSCA), while Banxso’s licence was provisionally suspended by the FSCA in October last year.
This article includes a video of an interaction between a Moneyweb-created alias, Nelson Marishi, and an AfriMarkets agent named Thomas Fischer. This depicts how AfriMarkets systems are integrated with fake ads.
AfriMarkets has vehemently denied any links to the fake ads. Read the full response here or see the bottom of the article.
ALSO READ: AfriMarkets: Banxso’s emerging twin?
Who is AfriMarkets?
Moneyweb reported last year that several former Banxso employees claimed that AfriMarkets is virtually a carbon copy of Banxso. Although registered early in 2024, AfriMarkets only emerged as a major platform after the FSCA suspended Banxso’s licence in October.
Harel Sekler owns both companies. He is also a director of both.
Warwick Sneider was also a director of both but resigned from Banxso on 7 November last year and from AfriMarkets on 21 November. Mervyn John Ross was appointed as AfriMarkets’ second director a few days later, on 27 November.
Nearly 350 former Banxso clients, including many pensioners, have approached Moneyweb, claiming losses exceeding R220 million.
Additionally, 12 AfriMarkets clients have claimed losses totalling R20 million. Clients of both companies allege that after being onboarded, a process begins to extract as much money from them as possible. Former employees have corroborated this claim.
ALSO READ: Banxso victim launches liquidation application
Latest from a former employee
A former employee who contacted Moneyweb stated that AfriMarkets attracts more than 80 new clients daily.
“Almost 99.9% of people whose contact details come through to AfriMarkets say they clicked on an ad featuring [Cyril] Ramaphosa, Elon Musk, [Johann] Rupert, [Patrice] Motsepe, AI Quantum, AfriForum, Capitec, Sasol, Amla, and others.”
According to the former employee, clients register on fake ads and expect to receive more than R150 000 monthly after depositing R4 800.
“Our trainers said as long as we say, ‘Yes, Mr. client, you can potentially make that amount every month,’ they fall for it. They deposit, we ring the bell, get paid commission, and don’t consider if the client has no food to eat. The most common phrase in that company is, ‘Either the client’s family is going to eat, or my family is going to eat.’”
Other former employees supported this claim, stating that AfriMarkets knows the source of all the leads it receives from marketing affiliates.
“When we, former Banxso agents and now AfriMarkets agents, make a sale, we must state which marketing company the lead came from,” another former employee said.
This video provides an account of identifying blatantly fake and fraudulent advertisements on social media, the registration process, and a lengthy sales pitch by AfriMarkets agent Thomas Fischer to onboard Moneyweb’s alias Nelson Marishi. Video: Thulani Manda and John Culverwell/Moneyweb
ALSO READ: WATCH: Banxso defies licence suspension
‘AfriMarkets has no links to fake ads’ – AfriMarkets
AfriMarkets has vehemently denied any links to the fake ads, stating that the company is the victim of a cyber attack.
In response to questions, Hanekom Attorneys, on behalf of AfriMarkets, stated:
“Following previous concerns about unauthorised data entry into our CRM[customer relationship management system], we implemented additional security controls and compliance measures. However, malicious actors continue to evolve their tactics. This type of parasitic scam is known throughout the industry, and there are many reported cases of large forex and CFD[contracts for difference] platforms being targeted.”
However, Moneyweb contacted several major trading platforms in South Africa, including IG Markets, Scope Markets, and Tickmill. Their CEOs vehemently denied that their systems had been “hacked” by such “third parties” and stated they were unaware of similar practices in the industry.
Robert van Eyden of Scope Markets said: “I can confirm we have had no unauthorised lead insertions. If we had, we would have immediately reported it to the FSCA and informed our clients about this on our website. I do not think it’s an industry-wide problem.”
Roger Eskinazi of Tickmill stated: “It’s impossible for any third party to insert ‘leads’ into our CRM. All qualifying leads have to cascade chronologically through our sign-up flow system before they appear on the CRM. Numerous steps in this process cannot be circumvented.”
ALSO READ: The FIC busts Banxso
Moneyweb investigation
Following the claims made by the former employee, Moneyweb initiated an investigation to verify the allegations by creating aliases and registering on seven different fake ads on social media.
AfriMarkets agents quickly phoned the aliases with a well-rehearsed marketing pitch to onboard them as clients in five cases. (Two of the aliases were contacted by foreign operations, which will be the subject of a separate investigation.)
In all five interactions, the agents phoned the aliases within minutes after registering on the fake ads, but vehemently denied any links between AfriMarkets and the fake ads.
They all said they phoned because the individual had registered to “trade on the financial markets”. The agents also emphasised on multiple occasions that AfriMarkets is a legitimate company registered with the FSCA.
ALSO READ: Banxso continues to take money despite banks freezing its accounts
While I have you on the line …
Not a single agent terminated the call after the alias stated they had registered on a fake ad.
Moneyweb presented questions to AfriMarkets regarding a specific interaction between its alias, Nelson Marishi, and the AfriMarkets onboarding agent Thomas Fischer. (This interaction is featured in the video in this article.)
Hanekom Attorneys responded that AfriMarkets believes Fischer’s denial was sufficient to distance the company from the fake ad and that the onboarding process could continue.
“Our internal quality control has found that upon learning that the client had been misled by an advertisement, the onboarding agent clarified that AfriMarkets had no affiliation with the fraudulent ad. The agent provided full disclosure of risks and sought confirmation from the client that he wished to proceed before any further action was taken.”
ALSO READ: Banxso agents allegedly mislead clients on licence status
Risk disclosure
One of the most prominent themes of the five interactions with AfriMarkets agents was that the agents did not fully inform the aliases that most clients lose money on the AfriMarkets platform.
This is critical information, as most CFD traders lose money.
A 2019 European Securities and Markets Authority report found that between 74% and 89% of European retail investors lost money trading CFDs. For this reason, the USA has banned CFD trading.
AfriMarkets is aware of this. Sekler acknowledged this during an interview with the FSCA last year, confirming that 70% to 80% of Banxso’s clients suffered losses.
AfriMarkets also discloses this in the fine print at the bottom of a welcoming email sent to the aliases shortly after registering on the fake ads, which states: “Most retail investor accounts lose money when trading with this provider.”
However, the agents never mentioned this fact in any of the telephonic engagements with Moneyweb’s aliases. In fact, the risks were significantly downplayed during the engagements between Nelson Marishi and Thomas Fischer.
The agents make numerous statements that there are risks involved with trading but state that these risks are significantly reduced as AfriMarkets’ professional traders will assist investors. Fischer even stated that AfriMarkets’ professionals “will assist investors to make improved decisions and do 90% to 95% of the heavy lifting”.
In another interaction between Moneyweb alias Jo Dewal and AfriMarkets agent “Aphiwe”, Jo was told that most AfriMarkets clients make money.
In response, Hanekom Attorneys stated:
“The disclaimer outlining that most retail traders lose money was included in the welcome email and was verbally disclosed by the agent. Transparency is a key component of our compliance framework.”
ALSO READ: FSCA investigates Banxso agents’ claims that it ‘has been cleared’
Automatic opening of a trading account
Another indication of the extent of the integration of AfriMarkets’ systems with the fake ads is that AfriMarkets automatically opens a trading account after someone registers on a fake ad.
Occasionally, the registrant is automatically redirected to the trading account on AfriMarkets’ website. When Moneyweb alias James Kay registered on a fake ad, he was automatically redirected to an already opened AfriMarkets trading account in his name. See the video below.
This video shows the extent of AfriMarkets’ integration with the fake advertisements. The video was not edited and shows how a trading account was opened seconds after one of Moneyweb’s aliases registered on a fake ad. Video: Ryk van Niekerk and Thulani Manda/Moneyweb
In Marishi’s case, Fischer directed him to open the AfriMarkets website and instructed him to click the loginlink – not the registration one.
Fischer then instructed Marishi to use his email address as the username and provided him with a temporary password to log in, which resulted in a trading page opening up in Marishi’s name.
Marishi then questioned the existence of a trading account in his name as he only registered on a fake ad. Fischer responded: “Yes, you have. When you register, when you put your details up, an account is created automatically … Modern technology, what can I say?”
However, Hanekom Attorneys denied this:
“AfriMarkets’ system does not automatically create accounts from fraudulent advertisements. The registration process is only completed when a user actively engages and confirms their details. Nevertheless, we continue to refine our client verification processes to mitigate any risks associated with third-party misrepresentations.”
ALSO READ: FSCA warns consumers about investments with these unregistered entities
Desperate pensioners with medical conditions
Another notable aspect of the interaction between Moneyweb’s aliases and AfriMarkets agents is that the agents tried to onboard the aliases despite not fitting the profile of someone who should trade CFDs.
Moneyweb’s aliases were all sickly pensioners with no trading experience. They all had dependants and clearly stated that they could not afford to lose money.
Marishi was a wheelchair-bound 71-year-old pensioner caring for his sickly wife and unemployed children. He repeatedly stated that he had insufficient income “to pay the bills” and wanted a low-risk investment to supplement his income. He also emphasised that he could not afford to lose his savings.
Despite this, Fischer continued with an onboarding process.
However, Hanekom Attorneys assessed that Marishi adhered to AfriMarkets’ minimum requirements:
“Upon review of the engagements through the aforesaid quality control process, it was determined that Mr Marishi does meet the minimum requirements as per the company’s suitability and vulnerability assessments. Notwithstanding, he would have flagged a further risk committee assessment, which the company employs for additional due diligence, so as to ensure that he was indeed fit to use the company’s platform and the associated financial products.
“That being said, Mr Marishi confirmed, and it was apparent from the context, that he was capable of understanding, and indeed understood, the risks involved. Various personal information was considered in establishing his ability to fully comprehend the risks involved.
“AfriMarkets has strict onboarding requirements, including financial suitability assessments. The onboarding agent followed due process in disclosing risks and obtaining the client’s informed consent before proceeding,” the statement reads.
One of the former AfriMarkets employees claimed that the policy in the office was to onboard anyone with an income of more than R25 000 a month.
Legal action
It is important to note that Banxso, Sekler, Sneider, AfriMarkets, and Oren Shabat Laurent – the former CEO of Banc de Binary, with which Sekler has historical links – have issued summonses for defamation against Moneyweb and GroundUp (which published an article that Moneyweb republished) for R36.5 million.
Moneyweb and GroundUp are defending their actions.
Anyone who has lost or made money on the Banxso or AfriMarkets platforms, or is a current or former employee of the platforms, is welcome to contact Moneyweb at ryk@moneyweb.co.za. All information will be treated strictly confidentially.
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The full response from Hanekom Attorneys to Moneyweb questions:
AfriMarkets (Pty) Ltd Response to Moneyweb Questions
Question 1: The sequence of events shows that AfriMarkets received Mr Marishi’s information, and he registered on a blatantly fraudulent advertisement. Why was his information entered into the fake ad and transferred to AfriMarkets?
At Afrimarkets, we place the utmost importance on addressing concerns about unauthorised advertisements. Following the identification of deep-fake advertisements in April 2024, we swiAly implemented comprehensive protective measures, including a temporary pause on external traffic to our plaEorm. We are pleased to share that since resuming operations, these safeguards have demonstrated their effectiveness.
AfriMarkets does not create or control third-party advertisements. While we have taken extensive measures to curb unauthorised use of our brand, we acknowledge that sophisticated actors may still exploit third-party advertising channels beyond our oversight. We remain committed to investigating any fraudulent use of our name and encourage public reporting of such incidents.
For the aforesaid reasons, whilst we remain vigilant in our monitoring efforts and genuinely value public participation in identifying any suspicious advertisements to be investigated, we are unable to comment on specific allegations regarding unauthorised advertisements or the motives behind these advertisements, as we are not involved in their creation or distribution, as previously established.
2. Banxso previously claimed that a “third party” unknowingly inserted leads into its CRM system and described it as a cyber-attack. Does Mr. Marishi’s case indicate that Banxso/AfriMarkets has not resolved this issue?
Following previous concerns about unauthorised data entry into our CRM, we implemented additional security controls and compliance measures. However, malicious actors continue to evolve their tactics. Notwithstanding, this type of parasitic scam is known throughout the industry, and there are many reported cases of large forex and CFD platforms being targeted. The case of Mr Marishi will be investigated further to ensure that our safeguards remain robust.
3. Why did Mr. Fischer not terminate the call upon learning that a fraudulent advertisement had misled Mr. Marishi?
Our internal quality control has found that upon learning that the client had been misled by an advertisement, the onboarding agent clarified that AfriMarkets had no affiliation with the fraudulent ad. The agent provided full disclosure of risks and sought confirmation from the client that he wished to proceed before any further action was taken.
4. Mr. Fischer directed Mr. Marishi to the AfriMarkets website and provided him with login credentials for a trading account. Mr. Marishi did not register on AfriMarkets’ website; the details he entered in the fake ad were automatically used to create the account. This suggests an advanced level of integration between AfriMarkets and the fake ad. Why does AfriMarkets automatically create trading accounts based on information entered into such advertisements?
Please refer to the response to question 1 hereinabove. Moreover, AfriMarkets’ system does not automatically create accounts from fraudulent advertisements. The registration process is only completed when a user actively engages and confirms their details. Nevertheless, we continue to refine our client verification processes to mitigate any risks associated with third- party misrepresentations.
5. Why did Mr. Fischer proceed with the onboarding process after learning that Mr. Marishi was a 71-year-old, wheelchair-bound pensioner with significant financial responsibilities and no trading experience? Does AfriMarkets believe this profile is suitable for trading high- risk instruments like CFDs, in line with FSCA regulations?
Upon review of the engagements through the aforesaid quality control process, it was determined that Mr Marishi does meet the minimum requirements as per the company’s suitability and vulnerability assessments. Notwithstanding, he would have flagged a further risk commiIee assessment, which the company employs for additional due diligence, so as to ensure that he was indeed fit to use the company’s plaEorm and the associated financial products. That being said, Mr Marishi confirmed, and it was apparent from the context, that he was capable of understanding, and indeed understood, the risks involved. Various personal information was considered in establishing his ability to fully comprehend the risks involved.
AfriMarkets has strict onboarding requirements, including financial suitability assessments. The onboarding agent followed due process in disclosing risks and obtaining the client’s informed consent before proceeding.
6. Mr. Marishi repeatedly asked about the risk profile of the investment product, emphasising that he could not afford to lose money. Mr. Fischer assured him that risks were minimal and profits were virtually guaranteed. AfriMarkets’ “trading professionals” would assist him in learning how to trade successfully in the same way as “driving instructors would teach people how to drive.” This assurance directly contradicts the inherent high-risk nature of CFDs. Why did Mr Fischer misrepresent the risk level?
At no point did the agent guarantee profits. The client was informed multiple times that CFD trading carries inherent risks. Full risk disclosures, as required by FSCA regulations, were presented and acknowledged by the client, twice, before proceeding with the account setup.
7. The welcome email sent to Mr. Marishi by AfriMarkets includes a disclaimer stating: “Most retail investor accounts lose money when trading with this provider.” Why did Mr. Fischer not disclose this to Mr. Marishi during their interaction?
The disclaimer outlining that most retail traders lose money was included in the welcome email and was verbally disclosed by the agent. Transparency is a key component of our compliance framework.
8.1 Over the past year, I have registered on multiple fake advertisements and, in most cases,was contacted by Banxso or AfriMarkets onboarding agents. In all these instances, tradingaccounts were automa:cally created using the information the aliases registered with onthe fake ads. Of the 350+ individuals who contacted me, claiming collective losses exceedingR220 million, nearly 80% were elderly and reliant on. They are desperate andfinancially inexperienced, making them highly unsuitable for trading CFDs.Despite Banxsoand AfriMarkets denying that they benefit from fraudulent ads, their onboarding agentsconsistently proceed with the onboarding process instead of terminating the calls.Additionally, the owner of Banxso and AfriMarkets is also the owner of the liquidity provider(s)—a significant conflict of interest that incentivises agents to ensure clients losemoney. Given these facts:What steps has AfriMarkets taken to ensure it does not benefit from fraudulentadvertisements?
Please refer to the response to question 1 hereinabove. We actively monitor for unauthorised ads and have ceased external marketing campaigns to mitigate risk. Any misuse of our brand is addressed promptly through legal and regulatory channels.
8.2. How does AfriMarkets justify its failure to terminate calls with vulnerable clients misled by fake ads?
We operate under Treating Customers Fairly (TCF) principles. Clients who proceed are being informed of risks and disclaimers cannot be arbitrarily denied access to services unless they fail compliance checks.
8.3. How can AfriMarkets reassure the public that its operations are ethical and compliant with FSCA regulatoons?
Our role is that of an intermediary, and we maintain full compliance with all regulatory requirements pertinent to our business model and operational structure. We work closely with our regulatory partners to ensure ongoing adherence to all applicable financial services legislation.
This article was republished from Moneyweb. Read the original here.
