DON’T FALL FOR INVESTMENT SCAMS
We frequently receive tip-offs from readers who believe they have been scammed. Unfortunately, as these scams are unregulated and difficult to prove, the chance of being refunded are close to zero, but we hope that these warnings assist other potential victims.
Peter wrote to City Press to warn readers against Facebook page “Ref Wayne Forex Trader”. On June 12, he deposited R1 000 into a Nedbank account being told he would receive R10 000 after 10 days.
He has not seen his money since and has been blocked from the WhatsApp number. When City Press sent a query to the Facebook page, we received a “no comment” response.
Moneyweb published an article on July 12 on Ref Wayne’s new controversial investment product after the failure of his Pipcoin venture.
Esther wrote to City Press after losing R40 000 to an offshore investment trading company called Vix 500. She was called by someone from the company convincing her she would make a lot of money through its trading platform.
“I explained that I had never traded before and I didn’t understand anything about trading. He convinced me that I would make a lot of money through their trading platform and showed me platforms of people he had been helping to get money.
“He said he would help me and charge 5% of my profits for trading on my behalf.”
The caller convinced her to put R40 000 through her credit card and took her through the platform. She was told she could get her profits after a week, but when she tried to log on, she could not access the website. She contacted the company via email and was told to send a copy of her ID and credit card and they would release the funds. Although she could now see her account, the money was not deposited.
She has since cancelled her card to stop any further withdrawal. City Press reminds all readers not to invest with unregulated platforms and to be wary of cold calls from people convincing you to give them money.
Despite investors losing money in the MMM scheme, the “organisation” has recreated itself with a new pyramid to feed off. This week our sister publication Fin24 ran a report of the many investors who have contacted the publication telling of their losses, which in some cases are as high as R500 000. Fin24 reported that “South Africans who lost money in the frozen scheme do not appear to have legal recourse, and many are too embarrassed to speak out. Those who do are being verbally abused on social media and on group messaging forums on WhatsApp”.
City Press, along with Fin24, actively warned people against investing in MMM. Unfortunately, there are still people who believe this is a genuine scheme and that the media are protecting “interests”.
A potential investor sent through documents from a new investment scheme called Love and Lets Live. It claims to give a return of 8% per month using a variety of forex currencies. I think we have written enough on this page about why this investment should raise a red flag.