FSCA raises red flag over Geefx investments
South Africans are being confronted with increasingly sophisticated investment scams on social media.
Image: File
The Financial Sector Conduct Authority (FSCA) has warned members of the public to exercise caution when dealing with Uwen Paulsen and Geefx, after allegedly receiving information concerning the solicitation of money for investment purposes.
The regulator said neither Paulsen nor Geefx is authorised by the FSCA to provide financial services to members of the public.
“Without commenting on Paulsen’s business, the FSCA confirms that Mr Paulsen and Geefx are not authorised by the FSCA to provide financial services to members of the public,” it said.
The FSCA also said it had been unable to reach Paulsen using the contact details provided to the regulator.
The warning comes as regulators and financial institutions continue to caution consumers about investment opportunities promoted online, including scams that use manipulated or artificial-intelligence-generated videos to impersonate well-known public figures.
Earlier this year, the FSCA warned about an AI-generated video that impersonated financial journalist Maya Fisher-French and broadcaster Bruce Whitfield.
The video promoted an investment referred to as “Quantum AI”, which was falsely presented as a company belonging to Elon Musk, and claimed investors could earn returns of up to R60,000 a week from an initial investment of R4,200.
It followed other instances in which manipulated footage involving Musk and SABC presenter Francis Herd was used to promote an investment opportunity. Fact-checkers found that the footage had been manipulated and that Musk was not endorsing the investment.
A website flagged as dangerous that offers investments "backed" by Elon Musk.
Image: Screenshot
The FSCA has warned that increasingly sophisticated scams can make it difficult for consumers to determine whether investment-related content is genuine simply by looking at or listening to it.
“There are many fraudsters operating scams, and the number is growing. South Africans lose millions of rands every year to fraudsters,” the FSCA said. “Illegal operations are sometimes well-disguised as legitimate operations.”
The regulator said consumers should be cautious of investment opportunities promising unrealistic or exaggerated returns, particularly those promoted through social media.
Other warning signs include requests for upfront payments, demands for additional money before an investment can be withdrawn, payments for training, pressure to make decisions or payments urgently, and vague information about the investment product.
Check before investing
The FSCA advised consumers not to accept financial advice, assistance or investment offers from individuals or companies that are not authorised to provide financial services.
“Authorised financial services providers must clearly display their authorisation status in their documentation. If this is not present, it is advised to further investigate before making any payments,” it said.
Consumers can check whether a person or institution is authorised by contacting the FSCA on 0800 110 443 or by using the regulator’s online financial services provider search facility.
Suspicious activity can be reported to the Ethics and Fraud Hotline on 0800 313 626.
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