Protect Yourself from Financial Scams

The Growing Threat of International Scams

The global scamming ecosystem has evolved into a highly organized and industrialized operation, leaving consumers increasingly vulnerable to complex and hard-to-detect fraud. As the festive season approaches, financial institutions like Sanlam are urging individuals to remain vigilant against a surge in impersonation and investment scams.

Over the past year, there has been a noticeable increase in fraudulent activities involving fake investment opportunities, advance-fee schemes, and identity impersonation. These scams have become more sophisticated, convincing, and aggressive, often leveraging the names and images of well-known brands and executives to deceive victims.

Scammers are acutely aware of the festive "spirit of spending" and will exploit this by offering tempting deals or quick cash solutions. They also understand that January can be a financially challenging time for many people, making them more susceptible to offers of guaranteed returns or urgent financial assistance.

The rise of highly coordinated and industrialized “scam compounds” is a serious concern, 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 proliferation of fake investment groups on platforms like Telegram, WhatsApp, and Facebook. These groups falsely claim to be run by credible institutions or well-known leaders, using slick profiles, fabricated testimonials, and manipulated images of executives to create an illusion of legitimacy.

In some cases, scammers mimic official emails so convincingly that only minor spelling errors or altered domain names reveal their true nature. The Financial Sector Conduct Authority (FSCA) has issued specific warnings about scammers impersonating authorized Financial Services Providers (FSPs), including those claiming to be associated with Sanlam.

Beyond Social Media: Call-Spoofing and Vishing Scams

Sanlam is also witnessing a sharp increase in call-spoofing or “vishing” scams. Criminals use number-spoofing technology to appear as Sars, banks, or other trusted institutions, aiming to extract personal information from unsuspecting victims.

These scammers rely heavily on creating a sense of panic or urgency. They may claim there is a problem with your account or that you are about to miss out on a valuable opportunity. Pressure is their most effective tool.

Business Email Compromise: A Hidden Threat

Business email compromise (BEC) remains a growing threat. Criminals infiltrate email accounts, often through weak or breached Gmail passwords, and 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.