South Africans are being warned to exercise extreme caution when dealing with investment firm Cloud 9 Investments SA.
The Financial Sector Conduct Authority (FSCA) noted that the company is accused of soliciting funds from the public without the required authorisation from the financial regulator.
According to the regulator, it received information that Cloud 9 was soliciting money from members of the public for forex trading.
However, the FSCA said neither the CEO nor the company is authorised to provide financial services to the public.
“Without commenting on the business of Cloud 9, the FSCA confirms that Cloud 9 are not authorised by the FSCA to provide financial services to members of the public.”
The regulator said the CEO told the FSCA that she had only traded on behalf of family and friends and not for the general public.
She also informed the authority that she had stopped her trading activities. Despite this, the FSCA said it is continuing to investigate the matter further.
The authority urged consumers not to accept financial advice, investment assistance, or trading offers from individuals or businesses that are not licensed by the regulator.
“To avoid unnecessary risk, the public should not accept financial advice, assistance, or investment offers from individuals or entities that are not authorised by the FSCA,” it said.
The regulator added that authorised financial services providers are required to clearly display their authorisation status in official documentation, and warned consumers to conduct further checks if this information is absent.
The FSCA also cautioned South Africans against unsolicited investment offers circulating on social media platforms, noting that fraudsters increasingly disguise scams as legitimate investment opportunities.
“The public is strongly urged to exercise caution when considering unsolicited investment or trading offers, especially those communicated through social media,” it said.
“There are many fraudsters operating scams, and the number is growing. South Africans lose millions of rands every year to fraudsters. Illegal operations are sometimes well-disguised as legitimate operations.”
The number of fraudsters continues to grow in South Africa
The warning forms part of a broader crackdown by the regulator on scammers impersonating legitimate financial services providers to lure unsuspecting investors.
In a separate alert, the FSCA said scammers had been impersonating Fairtree Asset Management and its chief executive, Kobus Nel, through a Telegram group called “Fairtree Capital Ltd”.
According to the regulator, the group used Fairtree’s branding, name, and details linked to its CEO to solicit money from the public.
Fairtree Asset Management confirmed that neither the company nor its CEO had any association with the Telegram group or its administrators.
The FSCA also warned consumers about fraudsters impersonating Prime Investments, a grouping that includes Prime Fund Services, Prime Product Services, and Prime Capital Markets.
The regulator said administrators of another Telegram group used the company’s branding and staff photographs to promote investments in Bitcoin mining, binary options trading, and account management services.
Prime Investments confirmed that it had no relationship with the individuals behind the scheme.
Another company targeted by impersonators was PWM Wealth Management. The FSCA said a Telegram group had been using the company’s name and logo to market trading strategies to the public.
PWM Wealth Management also denied any links to the group, while the FSCA said it had been unable to contact the administrators using the available details.
The regulator urged South Africans to remain vigilant and watch for warning signs commonly associated with fraudulent investment schemes.
These include promises of unrealistic returns, demands for upfront payments, pressure to act urgently, vague information about investment products, and offers promoted primarily through social media channels.
The FSCA also warned consumers to be wary of schemes that require additional payments before investors can supposedly access or recover their funds, as well as offers that require payment for training before investing.
“Consumers are encouraged to act with care when investing their funds, as many fraudsters operate scams and their numbers continue to grow,” the regulator said.
