Scammers step up ahead of holidays, targeting South Africans with fake investment offers

The international scamming ecosystem has grown to industrial levels, leaving consumers vulnerable to sophisticated and hard-to-spot scams. As we head into the festive season, Sanlam is warning consumers to be extra cautious amid a sharp rise of impersonation and investment scams, in particular.

Over the past year, financial institutions, regulators and law-enforcement partners have seen a noticeable escalation in fraud cases involving fake investment opportunities, advance-fee schemes and identity impersonation. These scams are becoming more sophisticated, more convincing and more aggressive – increasingly using the names and images of well-known brands and executives to lure victims in.

Helen du Toit, Head of Forensics at Sanlam, says scammers are acutely aware of the festive “spirit of spending” and will look to capitalise on it. “They also know January can be financially difficult for many people, which makes consumers more vulnerable to offers of quick cash or seemingly ‘guaranteed’ returns.”

Du Toit warns that the global proliferation of highly coordinated and industrialised ‘scam compounds’ is not to be taken lightly, especially as they increasingly target vulnerable groups such as the elderly.

A new wave of impersonation scams

One of the fastest-growing threats is the rise of fake investment groups on Telegram, WhatsApp and Facebook. These groups falsely claim to be run by credible institutions and well-known leaders, using slick profiles, fabricated testimonials and manipulated images of executives to create legitimacy. In some cases, scammers mimic official emails so convincingly that only a small spelling error or altered domain name gives them away.

The Financial Sector Conduct Authority (FSCA) has issued a specific warning about scammers impersonating authorised Financial Services Providers (FSPs), including individuals claiming to be associated with Sanlam.

More than just social media

Sanlam is also seeing a spike in call-spoofing or “vishing” scams, where criminals use number-spoofing technology to appear as SARS, a bank or another trusted institution to extract personal information.

“These scammers rely on panic or urgency,” says du Toit. “They’ll claim there’s a problem with your account or that you’re about to miss out on an opportunity. Pressure is their strongest weapon.”

Business email interception: a growing blind spot

Business email compromise (BEC) remains an escalating threat. Criminals infiltrate email accounts - often through weak or breached Gmail passwords - and quietly monitor correspondence before intercepting payment instructions and inserting fraudulent banking details. Hidden forwarding rules or deleted messages make these attacks extremely difficult to detect.

How South Africans can protect themselves

Sanlam urges consumers to stay vigilant and approach any unsolicited financial opportunity with caution. Key safeguards include:

• Sanlam and other reputable financial institutions will never ask consumers to invest via Telegram, WhatsApp, Facebook or direct messages.
• No Sanlam executive - or any public figure - will personally offer investment deals or expedited returns.
• Avoid clicking on links in unsolicited messages and always verify email addresses and social-media accounts carefully.
• Never share personal information such as ID numbers, banking details or OTPs over phone calls or chat apps.
• Look out for spelling errors, altered email domains, unusual sender names, unexpected attachments or mismatched links.
• If unsure, check with the Financial Sector Conduct Authority (FSCA) or consult an accredited financial adviser.

The FSCA urges the public to be alert to red flags such as unrealistic returns, pressure to act urgently, vague investment information, claims that an entity “does not need an FSCA licence”, or requests for additional payments. Consumers can verify whether an FSP is legitimately authorised by calling the FSCA (0800 110 443) or using its online FAIS search tool.

What to do if you’ve been targeted

Victims of fraudulent investment scams should submit a complaint to sanlam@tip-offs.com with as many details as possible - including screenshots - so Sanlam can conduct an internal investigation. Because these matters involve criminal conduct, affected individuals must also open a case with the South African Police Service (SAPS).

Sanlam will continue working closely with regulators, law-enforcement agencies and its forensic teams to detect, report and shut down scams. Updated alerts and guidance will be shared via SanlamOnline and other official communication channels.