People lured by fake ads lose savings
The adverts impersonated billionaires such as Elon Musk and Johann Rupert, as well as SABC anchors, to promote an online trading platform
Michelle Anderson* lost her entire pension, most of it overnight, allegedly on the Banxso investment trading platform promising excellent financial returns after clicking on deepfake online adverts of tech billionaire Elon Musk and South African businessman Johann Rupert.
Anderson, who takes care of her special needs husband, said her family is destitute after she invested her life savings after spotting the online adverts.
“I saw an advertisement with Elon Musk and another from Johann Rupert saying this investment is guaranteed to give you lots of return,” she said. “It gave a place where you could apply and it said they would contact me soon and tell me what to do. It said for as little as R4 700 I could secure a good investment.”
She is one of five investors who this week told the Mail & Guardian about their investment experiences. They are part of a group of more than 20 people the publication is aware of who filed a complaint with the Financial Services Conduct Authority (FSCA) after allegedly losing investments totalling more than R10 million on the Banxso platform.
Banxso, which is registered with the FSCA, said this week it is a “legitimate trading platform” that “empowers clients to make their own trading decisions” and takes allegations of financial losses reported by investors “very seriously”.
“Banxso operates as a trading platform and does not manage funds, make investment decisions or offer financial advice on behalf of our clients. Each client is in full control of their trading decisions and outcomes. We are deeply concerned about reports of significant losses, especially those involving pensioners and individuals who have made substantial financial commitments,” it told the M&G.
Banxso also said it was not responsible for the deepfake adverts that use videos and artificial intelligence (AI) technology to generate cloned voices of prominent people such as Musk, Rupert and Leanne Manas, an anchor at the SABC public broadcaster.
Billionaire Nicky Oppenheimer is also used in the fake adverts.
“These fraudulent adverts were created and disseminated by third parties with no affiliation to Banxso. Our organisation has been made aware of these deceptive practices, which exploit our brand and mislead individuals. We have taken these matters seriously and have been actively investigating the source of these adverts to protect our reputation,” Banxso said.
Oppenheimer Generations, which represents the global interests of the Nicky and Jonathan Oppenheimer family, described the fake adverts as a scheme that “unlawfully uses the identity of Nicky Oppenheimer, alongside other prominent individuals, to falsely claim this is a genuine investment”.
“It uses AI technology and historical media to impersonate Nicky Oppenheimer, and to misrepresent that he has endorsed the scheme. This is a scam and neither Oppenheimer Generations nor Nicky Oppenheimer have any affiliation to the investment platform or the scheme,” Oppenheimer Generations said.
The SABC said it was aware of the adverts using its anchors to lure people “to believe their false advertising of various products and services”.
“SABC news anchors have not been in any way mandated to advertise companies or individuals selling investment products or services,” the public broadcaster said.
Attempts to contact Musk and Rupert for comment were unsuccessful.
Investors who clicked on the link to sign up for the investment have alleged that Banxso consultants and “success managers” had contacted them.
After clicking on one of the fake adverts Anderson said she initially deposited R4700 with Banxso on 2 January and then on 15 January she invested her entire pension savings of R600 000.
Anderson said she had explained to a Banxso “success manager” who contacted her that she had a dependent husband and could not afford to lose money.
She said the consultant reassured her there would never be more than a 5% loss.
“I first made R206 000 so my money that reflected was R811 000 and then I was supposedly trading with that amount. When my money ran out the first time my success manager phoned me to tell me he had managed to get me a further R250 000 bonus,” she said.
Anderson told him she wanted to withdraw R100 000 but this was refused.
“When I put more and more pressure on them, suddenly my money started to go down … badly … right through the weekend I watched as it went down, down until it showed a nil balance.”
She said her account had reflected a balance of R403 000 which “disappeared overnight”.
“They then phoned me and asked me to make a further deposit and I just told them I hope they can sleep at night because now four people are destitute,” Anderson said.
“I am angry. I am upset. But I am more distressed and panicky than anything else because I don’t know the future — that was my whole pension, and I was taking an amount of that every month for us to live and now I have been left high and dry,” Anderson said.
Darron Tarr, who lost R57 000 on the platform, said he is “extremely unhappy” because the product delivered did not match what had been advertised and promised.
He said he had signed up for the platform after watching a Youtube broadcast of SABC personalities who highlighted AI stock market software that “guaranteed an excellent return on investment, in excess of 80%”. The video claimed Musk, who appeared in the advert, had developed the product specifically for South Africans and that Oppenheimer and Rupert had endorsed it.
Tarr said he initially invested R4 800 but a Banxso “success manager” who contacted him allegedly put pressure on him to invest more. But he said he incurred significant losses after trading on his advice.
John Jooste said he had responded to a similar advert promising that the “authentic” Musk product would lead to excellent returns, but ended up losing about R120 000 on the Banxso platform, while Stacey Venter* lost R904 000 of her pension.
Carl Boonzaaier said he lost R828 000 trading on the Banxso platform after an individual impersonating Musk befriended him on Facebook. He said a Banxso consultant contacted him immediately after he completed an application form and a “success manager” over time put pressure on him to liquidate all his other pension assets to invest on the platform.
Boonzaaier, on the brink of giving in to the pressure and telling his financial adviser to take steps to transfer his funds, said he had fortunately listened to advice to not invest further on the platform.
He said many investors who have lost money are pensioners.
‘Suddenly my money started to go down … right through the weekend I watched as it went down, down until it showed a nil’
“I am retired and now your money is gone, you don’t have time to work to make up that loss. It is meant to be your money until your number comes up. I have no words, I am speechless, we all are speechless,” he said.
Anderson, Tarr, Jooste, Boonzaaier and Venter have been unable to recoup their losses incurred on the platform.
Responding to questions from the M&G this week, Banxso general manager Manuel de Andrade said affected investors should file a complaint by emailing identitycomplaints@banxso.com with the word “Compensation” in the subject line and including a description of how they were introduced to Banxso.
“We immediately proceed with rigorous quality control including listening to the initial onboarding calls and subsequent engagements between client and success managers. We envisage the process being concluded within seven days. Where clients were directed to Banxso by the misleading advertisements and they followed the automated mechanisms advertised, we are compensating,” De Andrade said.
He said Banxso was “aware of one specific case involving one specific client who was fully refunded” and that fewer than 20 clients had so far applied for refunds. But he declined to disclose the names and sums of other investors who have received refunds.
“It is important for all clients to be aware of the risks associated with trading and online scams. Banxso is dedicated to providing educational resources to our clients to help them navigate the trading environment safely and make informed decisions,” De Andrade said.
The company said it had “robust security measures in place” to protect investments.
“We regret any distress or financial hardship experienced by individuals. Banxso remains open to dialogue with any client who has concerns or complaints and is committed to resolving such matters amicably and transparently … we strive to uphold the highest standards of service and integrity,” the platform said.
The FSCA had not responded by the time of publication to questions about whether it is investigating complaints relating to Banxso.
*Names have been changed to protect people’s identity and privacy.