NPA seizes millions from fraudsters who bought IDs for R200
The Pretoria High Court has ordered the forfeiture of R4.4 million linked to fraudulent investment schemes, including Trouva and Centamin, as authorities intensify their crackdown on financial scams.
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Fraudsters paid South Africans as little as R200 to hand over their personal details - including ID photos - which were then used to open bank accounts later linked to fake investment schemes. Now, the Pretoria High Court has granted a R4.4 million forfeiture order to the National Prosecuting Authority’s (NPA) Asset Forfeiture Unit (AFU) after uncovering the scam.
The accounts, held across 24 different banks, were used to funnel money for so-called “multiplication” investment schemes with names such as Trouva, Centamin, Hot Farm and Benchmark Woodworking.
According to NPA spokesperson Lumka Mahanjana, the bank accounts were opened in the names of unsuspecting South Africans who were duped into providing their personal information to fraudsters.
“Investigations revealed that a group of Chinese nationals paid individuals R200 to hand over personal details, including ID photos,” Mahanjana said. “These were then used to open multiple bank accounts that served as conduits for complex fraudulent 'multiplication' investment schemes promoted via Facebook and WhatsApp.”
The schemes promised investors unrealistic returns and operated with features of both Ponzi and pyramid structures.
“They defrauded investors by promising them unrealistic returns on investments, reliance on funds from new investors to sustain their operations, and payment of new investors from money received from earlier investors,” Mahanjana explained.
Victims were persuaded to buy non-existent shares in industries such as agriculture, mining, and household furniture.
Banks flagged suspicious activity and alerted the National Consumer Commission (NCC), which referred the matter to the AFU on 4 February 2025. A preservation order was obtained in collaboration with the Financial Intelligence Centre (FIC) a week later.
The forfeited funds will now be redirected to the state.
“The forfeited funds will be paid into the Criminal Asset Recovery Account (CARA) ensuring that proceeds of crime are redirected to the state to strengthen the fight against organised crime,” Mahanjana confirmed.
The AFU vowed to intensify its efforts against fraud.
“The NPA’s Asset Forfeiture Unit will continue to pursue all legal remedies to ensure that assets derived from unlawful activities are forfeited to the State,” Mahanjana said.
Authorities have also called on victims to come forward.
“Individuals who invested money into the scheme are encouraged to open criminal cases,” the NPA urged.
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