Impersonation scams are becoming increasingly common in South Africa, with recent reports highlighting a surge in fraudulent investment schemes. One particularly concerning scam involves fake ‘get-rich-quick’ investment opportunities advertised in legitimate-looking groups on the messaging app Telegram.
Scammers impersonate reputable financial institutions like Sanlam, tricking unsuspecting South Africans into handing over their money. Sanlam has urged the public to remain vigilant, warning that fraudsters are taking advantage of digital anonymity to exploit people looking for financial security.
Helen du Toit, head of forensics at Sanlam, explains how these scams operate. “One of the most recent scams involving the Sanlam brand targets clients via Telegram, a cloud-based messaging app that lets users send messages, photos, and files. Crucially, the platform is known for its emphasis on privacy, with ‘secret chats,’ self-destructing messages, and the option to delete messages with no trace.”
She warns that scammers use Telegram’s private messaging features to offer fake investment opportunities, often promising high returns with little risk. “The Financial Sector Conduct Authority (FSCA) has issued warnings about scammers offering fake investment schemes on the app, usually promising massive profits with no real investment risk,” says du Toit.
Common Telegram scam tactics
Scammers on Telegram use several tactics to lure victims, including:
- Impersonating financial institutions – Fraudsters create fake groups that mimic legitimate financial service providers (FSPs) to deceive potential investors.
- Using the identities of public figures – Scammers impersonate well-known personalities to boost credibility, tricking individuals into investing based on the name recognition of the supposed promoter.
- Promising unrealistic returns – Fake investment plans often guarantee excessive profits in a short timeframe. Some scams have claimed that investors could multiply their money by eight times within six days.
- Demanding cryptocurrency payments – Scammers often prefer Bitcoin and other cryptocurrencies, making transactions difficult to trace.
- Forging official documents – Fraudsters misuse logos, FSP numbers, and fake FSCA certificates to appear legitimate.
Why are scams increasing, and why are people falling for them?
Du Toit says that economic hardship, advanced scam tactics, and digital anonymity have contributed to the rise in fraudulent investment schemes. “With rising unemployment, people are more vulnerable to promises of quick financial gain. Offers to ‘double your money in days’ are hard to resist in tough times,” she says.
Telegram’s encrypted chats, private groups, and untraceable usernames create ideal conditions for fraud. Many victims, particularly older individuals or those new to crypto and online investing, are unfamiliar with digital scam warning signs. Scammers exploit this by creating urgency and fear of missing out to pressure victims into making quick, unverified investments.
How to protect yourself
Du Toit suggests several steps to help South Africans avoid falling victim to impersonation scams:
- Verify authorisation – Before engaging with any financial service offering, confirm that the entity is authorised by the FSCA. You can check this on the FSCA’s official website www.fsca.co.za or contact them directly.
- Be sceptical of high returns – Guaranteed high returns with little or no risk are a red flag. If it sounds too good to be true, it probably is.
- Avoid unsolicited offers – Be cautious of unsolicited messages or invitations to join investment groups on Telegram.
- Do not share personal information – Never provide sensitive personal or financial details to unknown individuals or groups online.
- Report suspicious activity – If you suspect a scam, report it to the FSCA’s toll-free number: 0800 110 443, or visit www.fsca.co.za.
- Don’t fall for time pressure tactics – A legitimate financial service provider will never pressure you to act immediately or claim that an opportunity will disappear.
- Question the platform – If someone asks you to switch to Telegram to complete a transaction, be suspicious. Reputable financial institutions do not conduct business through messaging apps.
- Question cryptocurrency transactions – If someone pushes you to open a cryptocurrency account to invest, be wary—legitimate providers would not require this.
- Follow FICA verification procedures – Regulated financial products require FICA verification. If this step is missing, it’s a warning sign.
- Watch out for excessive premiums – If a supposed life insurer charges an annual premium when you didn’t request coverage, this may be a scam.
Du Toit urges South Africans to stay alert, saying: “Sanlam is committed to empowering people to protect their wealth. Financial security starts with knowing how to spot scams. We want everyone to have the confidence to say no to fraudsters.”
By remaining cautious, verifying financial service providers, and recognising red flags, South Africans can avoid falling victim to these scams, helping to prevent significant financial loss in an already challenging economy.
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