Ravi Govender, Momentum Group Digital and Technology Officer

Financial services company Momentum Group has warned that scammers are increasingly using “deepfake” content, seemingly personal WhatsApps and pages on social media platforms like Facebook which fraudulently misrepresent association with the company, impersonating the brand and senior or well-known current and former employees, in order to scam people into fake investment schemes.

Deepfakes are AI-generated videos, images or audio that are designed to impersonate real-life people or scenarios. Alarmingly the manipulated content looks or sounds realistically life-like, making it increasingly difficult for the public to differentiate between what is real (and likely) versus fake.

Fraudulent WhatsApp or Telegram groups, purporting to be from known and successful executives associated with the company, are also doing the rounds.

The company is urging consumers to be hyper vigilant when being approached to invest or part with money. How likely, after all, is it that the CEO, CFO, board member or famous billionaire has your number, and is involved in direct marketing via an unidentified WhatsApp group or social media video.

Commenting of the increase in deepfake impersonations, Ravi Govender, Momentum Group Digital and Technology Officer said: “AI has taken the world by storm and applications have mostly been beneficial; the ease of doing amazing things with these technologies is however a double-edged sword and scammers are now using this sophisticated technology for fraudulent and wide-spread activity. The threats are everywhere, and we urge consumers to educate themselves and to be constantly vigilant to not get caught out. If it seems too good to be true, it probably is, and we urge both current and potential clients to seek advice from a financial adviser before depositing their hard-earned money into these schemes”.

Earlier this year a deepfake video of retired businessman and former Momentum board member Laurie Dippenaar was circulated on both Whatsapp and through Facebook, asking people to invest. The video included a voice over that sounded exactly like Mr Dippenaar and seemed highly convincing until you looked a little closer. Why would a retired businessman now be touting for business via a social media video. Besides making no sense, the outdated image used just looked off and unnatural. Similar videos of Elon Musk or local billionaire Patrice Motsepe have also been doing the rounds. This past week a similarly fake WhatsApp group supposedly managed by Momentum Group FD Risto Ketola was also trolling for investment cash.

Look out for red flags

Scammers use every trick in the book to entice people. A few common-sense tips and looking out for obvious red flags can protect consumers:

• What is the realistic likelihood of this person reaching out to you directly and personally
  
• Are the promised returns unrealistic or exaggerated
• Is the timeline of achieving massive returns unrealistic – like next week or next month
• Is there pressure to act fast or miss out, creating a sense of false urgency and skipping steps like receiving proper documentation or policy information 
• Is there a way to check the authenticity of said investment – can you check the company’s official website, visit the company’s offices or email to ask more questions
• Will you have an investment portfolio or policy number, plus paperwork before you make any payments Where are you being asked to pay in money. Reputable companies will never ask you to pay into personal bank accounts

Check with the FSCA

An added protection is to ask for the financial service provider (FSP) number of a service provider. In a highly regulated industry FSP licence numbers are only issued by the Financial Sector Conduct Authority (FSCA) after a stringent application process. The same applies to verification of certified and professional financial planners and advisers. The FSCA is specifically set up to protect consumers and they play a role in verifying credentials and continually educating and warning people against scams.

To verify a FSP license number or accredited professional adviser you can use the search tool on the FSCA's website or call them on 0800 20 37 22. If you have a Momentum Group (Momentum or Metropolitan) scam query email info@mmltd.co.za.

Govender concludes: “We recognise that these are challenging economic times for many, and it is especially sad that it is in this context that the desperation that people feel often lead them to be taken advantage of by these get-rich-quick scams. Don’t be fooled. When in doubt reach out, to a financial adviser, to the company or to the FSCA who will all be happy to give you a view on whether this is real or not”.

In response to the growth of these and other similar types of financial scams, “Momentum has a dedicated team reacting to fraudulent activity as quickly as possible to make sure people are not conned into thinking they are engaging with us. All suspicious activities are reported to our security teams who work in collaboration with the appropriate authorities and, where possible, the social media platforms themselves to warn people and apprehend criminals. Unfortunately, the scammers are so quick that recovery of lost funds is rare. The best way to be safe is to not part with your hard-earned money before being absolutely sure that returns will come back to you and not the scammers”.