The Financial Sector Conduct Authority (FSCA) has warned South African investors against two unregulated companies, AfriInvest and MutualWealth, which purportedly operate without the requisite financial licenses. The companies purport to provide AI-crafted cryptocurrency trading that returns $542 per day, a prospect financial experts assert is not realistic and most probably false.

The FSCA has clearly stated that AfriInvest and MutualWealth cannot provide financial services to the South African general public under any of the financial sector laws.  To date, there has been no successful effort made to contact the organizations for comment.

Unauthorized Operations and Misleading Endorsements

In a press release on 28th March, 2025, the FSCA verified that AfriInvest and MutualWealth are not authorized to offer financial services in South Africa, indicating that their operations are unlawful. They stated that “It has come to the attention of the FSCA that AfriInvest and MutualWealth are soliciting funds from members of the public for investment purposes, while promising unrealistic returns of up to R10 000 per day”. They further stated that both companies have also been charged with fraudulently linking themselves to prominent individuals, such as media platform Maroela Media, activist Kallie Kriel, and artist Steve Hofmeyr. All three have denied any connection to these investing platforms in public.

The FSCA stated that its efforts to make contact with the companies were unsuccessful, which made it difficult to ascertain their operations thus further raising their suspicion. The agency warns that since unlicensed companies do not have control and consumer protection mechanisms, investors dealing with them risk financial loss. The FSCA urges people to check a company’s registration by calling 0800 110 443 or checking on its official website to safeguard their investments.

FSCA’s Ongoing Crackdown on Unregulated Investment Schemes

This is not the first time that FSCA has been tightening the screws on fraudulent and unregulated financial practices.  In October 2024, the regulator started pursuing action against Banxso after the firm was reported to have promoted their platforms in a misleading campaign involving deepfake ads. In mid-April 2024, the FSCA notified the public in a press release that it was investigating Banxso. The regulator at the time said that the FSCA had received several complaints regarding the conduct of Banxso, which led to its investigation. Afterwards, in October 2024, their license was revoked and their bank accounts were seized. 

Similar fraud was reported by another investment firm called AfriMarket which was reported to benefit significantly from social media bogus adverts, which feature celebrity millionaires and celebrity individuals promoting investment schemes that yield more than R500,000 per month for a one-time investment of R4,800.

Investors are being warned by the FSCA against any financial opportunity that offers extremely high returns with minimal or no risk.  The regulator warns that unscrupulous schemes have a tendency to lure naive investors with forceful marketing techniques, including unauthorized endorsements and exaggerated earnings projections. In the press release, warning against such firms, they said: 

“To avoid unnecessary risk, the public should refrain from accepting financial advice, assistance, or investment offers from individuals or entities not authorised by the FSCA. Authorised financial services providers must clearly display their authorisation status in their documentation. If this is not present, it is advised to further investigate before making any payments”.

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