The rising cost of living continues to tighten its grip on the economy, giving scammers, fraudsters and hustlers the green light to prey on those desperate enough – and potentially unaware of the dangers – to choose an easy way out of the financial hole they have fallen into.
While there are many scams floating around our email and SMS inboxes, the good-old-fashioned ‘get-rich-quick scheme’ is still going strong as opportunistic criminals seek to swindle investors out of their money.
Recently, the Financial Sector Conduct Authority (FSCA) highlighted the story of a person in South Africa who allegedly defrauded over 600 investors, some of whom lost more than R1 million in savings. This followed claims that the person could double their money in three months by trading foreign exchange.
Friedrich Rappard, chief information officer at Momentum Investment said investment scammers wouldn’t be so successful if people remembered a simple golden rule: Investments are a long-term game.
“I’m afraid investments are not going to get you rich quick,” said Rappard. “It is important to remember that a solid investment plan is one that extends for years if not decades. If someone is offering to double your money in three months, you better be wary and start questioning their motives.”
Rappard said scammers lure individuals in with a promise of low repayment loans or high returns on investments in a short space of time. He said these scammers may also go to great…
