Banxso gains from scam
TRADING GROUP STILL REGISTERS CLIENTS WHO CLICK ON FAKE ADS
Company claims the matter resulted from a malicious cyberattack.
TWe have noticed unauthorised registrations on our platform
he Cape Town-based contracts-for-difference trading platform Banxso, sponsor of UFC champion Dricus du Plessis and Bafana Bafana, continues to benefit from fake ads in which well-known business leaders promote investment platforms promising outrageous monthly incomes for a R4 800 investment.
This follows Moneyweb breaking the story over two weeks ago that individuals who registered on the fake ads were immediately captured on the Banxso platform.
Banxso vehemently denies that it is linked to the fake ads and claims the matter resulted from a malicious cyberattack by an unknown third party trying to tarnish its reputation.
In an issued statement, Banxso claims it has “thoroughly investigated” the cyberattack and filed a report with the Financial Sector Conduct Authority (FSCA).
It also states that “despite efforts, it is not feasible to prevent Immediate Matrix from placing leads directly onto Banxso’s platform due to the nature of online redirecting methods”. This despite writing three cease-anddesist letters in mid-February to Immediate Matrix and Dynadot, a domain marketplace, threatening injunctive relief if the Banxso demands are not met.
The statement also expresses dismay at questions Moneyweb sent to Manuel de Andrade, Banxso’s general manager. “The inquiry into Banxso’s business model, including requests for detailed information on operational strategies, liquidity providers, and internal compensation structures, is inappropriate and exceeds the boundaries of reasonable journalistic curiosity,” Banxso said.
“Banxso, as a private entity, maintains proprietary rights over its business operations and strategic decisions. Disclosure of such information is not obligatory and does not pertain to the public interest in the context of the allegations made.”
Despite its protests and claims of an inexplicable cyberattack by unknown perpetrators, Banxso continues to register clients who react to the fake ads.
Moneyweb came across a Facebook advertisement on Saturday purporting to be an SABC article. It states: “Nicky Oppenheimer, together with the South African government, launched a new project aimed at helping families become wealthier.”
The ad claims that Momentum Capital offers South Africans a weekly return of R34 300 on a once-off R4 800 investment in “cryptocurrency operations”. This represents a return of 615%.
Moneyweb registered via the registration function on the page using a fake name, Mandy Oberholzer.
On submission, the page redirected to a trading account it proclaimed had already been opened on the Banxso platform. Mandy also received an SMS and e-mail immediately after the registration, with the e-mail containing Mandy’s login.
Within less than a minute, a Banxso agent phoned Mandy to try to onboard her. The agent denied any link between Banxso and the fake ad. It was not clear if Immediate Matrix was involved.
In response to questions regarding Mandy’s automatic registration, De Andrade said: “The existence of these fake ads is against our interests, and we would stop them if we had the means.
“We have noticed unauthorised registrations on our platform. After investigating the ‘Mrs Oberholzer’ registration linked to your phone number, we found that our sales team had clearly informed you that Banxso has no association with these ads.
“While your approach to testing our employees’ responses is noted, it doesn’t reflect our company’s practices or intentions.”
Interestingly, a few hours later, ‘Mandy’ was accosted by several other platforms – CM, CostaFX and Lbank fx – through WhatsApp and phone calls from UK numbers. All claimed Mandy had registered on their platforms.
Moneyweb’s first article revealed that Banxso benefitted from referrals by Immediate Matrix, one of the companies behind the fake ads. After publication, Banxso offered refunds to people who made deposits to the fake ads.
Moneyweb’s policy is to accept advertising only from FSCA-licensed businesses, which Banxso is. However, the new campaign was cancelled as a precaution based on the events described in this and the previous article.