Uncovering the R200 scam: Chinese nationals behind fraudulent investment schemes in South Africa

Scamsters hatched an intricate plan where they duped unsuspecting South Africans into parting with the personal information, including ID photos, for a meagre R200, which was then used in the opening of fraudulent bank accounts.

The purpose of the fake bank accounts was to fleece funds from investors who desired "multiplication" of their respective outlays.

According to the National Prosecuting Authority, the out-of-the ordinary promised return on investments made by a group of Chinese nationals said to be operating the scheme was akin to Ponzi and pyramid investment structures.

The Pretoria High Court has since granted a R4.4 million forfeiture order to the NPA's Asset Forfeiture Unit (AFU) after the scam was uncovered.

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.”

“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 February 4, 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.

*Additional reporting, DAILY NEWS