There are dozens of ways scammers gain access to people’s accounts, often masquerading as being from financial institutions, says Ramesh Ramdeen, the head of fraud at FNB Wealth and Investments and Ashburton Investments.
“Investors need to be vigilant. If something feels or looks strange, stop what you are doing and get in touch with your financial service provider directly or your financial advisor. Never feel pressured to do something right away,” Ramdeen said.
Here are some of the most prevalent investment scams in South Africa:
High-yield investments: This type of fraud typically includes an unlicensed individual convincing an investor that an unregistered investment can produce a high yield with little to no risk. If you are approached online to invest in one of these, you should exercise extreme caution – it is probably a fraud. If it sounds too good to be…