A new wave of investment scams in South Africa has taken a concerning turn with the rise of deepfake videos impersonating regulators to orchestrate fraudulent schemes.

One such video, currently circulating on WhatsApp, reportedly portrays the Financial Sector Conduct Authority (FSCA) and its Commissioner, Mr. Unathi Kamlana, promoting an AI-powered trading platform that promises unrealistic returns of up to 30%.

"The FSCA is aware of a deepfake video on WhatsApp impersonating the FSCA and its Commissioner, Mr. Unathi Kamlana, to promote a new artificial intelligence (AI) trading tool called NBSG Securities or Nedbank Securities that promises a 20-30% higher return on investment," the regulator wrote on X and LinkedIn.

Regulator Distances Itself from Scam

The FSCA has officially distanced itself from the video, calling it an unauthorized and misleading misuse of its branding and personnel. The video reportedly promotes a tool branded as "NBSG Securities" or "Nedbank Securities," with claims of high-return investments powered by artificial intelligence.

"Please note this unauthorized use of FSCA and Nedbank icons is a scam and should be ignored by the public," the FSCA stated, emphasizing that neither the regulator nor Nedbank has any link to the investment tool being promoted.

The agency also warned of a growing trend in similar scams. Just weeks ago, another entity under the name "J532-NBSG" falsely claimed ties with Nedbank and actively solicited investments through Facebook and WhatsApp.

Legal Implications and Public Warning

According to the watchdog, these scams often feature AI-generated content or deepfake endorsements to mimic well-known individuals or institutions, aiming to gain credibility and deceive potential victims.

The FSCA is now reminding the public that impersonating businesses or falsely claiming associations to solicit funds constitutes a criminal offence.

The regulator is monitoring such cases and encourages the public to remain vigilant, especially on social media and messaging platforms where unsolicited offers are common.

Source: Finance Magnates