If you know what to look out for, you can protect yourself against scammers.
Imagine thinking you are trading on the JSE and then finding out it was all a scam and you have lost R6 million. Scammers are everywhere. At your bank, posing as brokers and on trading platforms where they use artificial intelligence to steal your details – and your money.
Or imagine receiving a WhatsApp message that looks exactly like it is from your bank. The logo is correct, the wording is professional and the person on the other end claims to be a bank official offering a lucrative investment deal. They even send a convincing link to download an app. But there is just one problem: it is all fake.
The good news is that there are red flags that will warn you that scammers are at work where you transact.
Scammers target South African consumers using AI-driven scams where fraudsters impersonate bank officials, create fake apps and manipulate social media to steal money. With deepfake videos, voice cloning and AI-powered chatbots, criminals can now sound and look exactly like real bank representatives, Nischal Mewalall, CEO of the South African Banking Risk Information Centre (Sabric) says.
“We warned it was coming. Now it is here.”
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Scammers use fake trading platforms
Standard Bank recently warned about a fraudulent WhatsApp group promoting SBG SI Trader, a fake investment app designed to steal personal data and money from consumers.
And it does not stop there. Scammers are not just creating fake banking apps, Mewalall says, they are also impersonating bank officials on social media, posting fake reviews and endorsements and generating fake news articles to trick their victims.
In one case, someone was misled into investing more than R6 million in a scam under the pretence of trading on the Johannesburg Stock Exchange (JSE). The scam was orchestrated by individuals posing as bank employees. They used a fake app and manipulated digital communication channels to gain the victim’s trust and facilitate the fraudulent transactions.
In another case, someone lost over R100 000 to a scam due to a fraudulent broker. The scammers created a professional-looking website and used social engineering techniques to deceive the victim into making substantial financial investments with this fake broker. Despite assurances that the consumer could withdraw the funds at any time, the victim lost all his money.
Mewalall warns that these scams feel real and says that is why they are so dangerous. “Criminals are leveraging AI to deceive even the most cautious individuals. AI-driven scams are now so advanced that even the most vigilant person can be fooled. Criminals can fake voices, emails and even entire apps. The only way to stay safe is to verify before you trust.”
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How to protect yourself against scammers
Mewalall says the rule of thumb is that if it sounds too good to be true, it probably is.
Also remember:
- Be wary of offers promising “guaranteed” financial returns.
- Never download apps from links sent via WhatsApp, SMS, or email. Always use official app stores.
- Verify before you trust. If someone claims to be from your bank, hang up and call the official number.
- Banks will never ask for your PIN, OTP, or banking passwords.
- CEOs do not sell or promote investments to the public.
Mewalall urges consumers to report suspicious activity immediately. If you suspect fraud, contact your bank and report it.
“These scams do not just target a few people. They affect everyday South Africans, draining their life’s savings and eroding trust in digital banking. Talk to your parents, colleagues and friends and share this message. The more we expose these scams, the less successful they become.”
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Red flags when dealing with brokers and trading platforms
MJ Givens Kgasi, analyst at Octa, says red flags are not just for relationships but are also key to identify untrustworthy trading platforms. “With South Africa’s growing crypto and forex trading market, more traders are at risk of scams, hidden fees and manipulative broker tactics.”
Kgasi shares these essential red flags to help South African traders avoid financial pitfalls and choose a platform that prioritises transparency, security and fair-trading conditions:
1: Lack of transparency
One of the first warning signs of an unreliable broker is unclear or misleading trading conditions, Kgasi says. “In relationships, if someone hides key details about themselves, it is a sign they may not be trustworthy. Similarly, a broker who conceals transaction fees, withdrawal terms, or regulatory information should be approached with caution.”
Some South African traders have fallen victim to platforms that promise “guaranteed profits” or offer unrealistic bonuses without fully disclosing the associated risks. Kgasi says a trusted broker provides full transparency on its terms, with no hidden fees or withdrawal restrictions. Before committing to a broker, always review their terms and test their service with small trades.
2. Poor security and data handling
In any relationship, boundaries matter and Kgasi says the same applies when choosing a broker. “Unreliable brokers may demand excessive personal information, such as ID copies, banking details, or passwords, before allowing users to trade. Worse still, some platforms fail to protect user data, exposing traders to hacking risks or financial fraud.”
With cyber scams and forex fraud on the rise in South Africa, traders must ensure their brokers have a strong security framework. Check that your funds are kept in segregated accounts, preventing misuse of funds and ensuring financial stability. A regulated and trusted broker will never compromise your data or pressure you into sharing sensitive financial details.
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3. Manipulative sales tactics
Another major red flag is when someone uses pressure tactics. Some platforms lure traders with aggressive marketing, promising massive returns with minimal effort. Others push users to deposit funds via unregulated channels, such as direct peer-to-peer transactions, making it difficult to recover lost money, Kgasi says.
South African regulators have warned traders against unlicensed brokers who use manipulation and deception to extract deposits. A reputable broker communicates openly, provides clear trading conditions and does not pressure traders into making rushed financial decisions.
According to Kgasi, starting a trading journey is much like building a relationship. It requires trust, transparency and security.
Therefore, you should look for brokers who clearly disclose all fees and conditions upfront. Kgasi says it is also important to only consider brokers who are comply with FSCA regulations or other reputable global oversight bodies.
