Crypto and investment scams: the promise of quick riches
23 October 2026 · Omnitrace

Problem: a friend, a WhatsApp group or a celebrity advert promises 20% a month. Agitate: early "investors" are paid with new members' money, so it looks real. People pour in savings, pensions and loans. Then withdrawals are "paused" and the website disappears. Solution: check before you invest, every time.
How these scams look
- Ponzi and pyramid schemes: returns paid from new members, with bonuses for recruiting.
- Fake crypto and forex platforms: a dashboard shows growing "profits", but you can never withdraw.
- Fake celebrity endorsements: doctored news articles and AI deepfake videos of well-known South Africans.
- Romance investing: an online "partner" introduces you to a "great platform".
Red flags
- Guaranteed high returns with "no risk".
- Pressure to join now, or rewards for recruiting friends.
- Payment in crypto, gift cards or into a personal account.
- A "tax" or "release fee" before you can withdraw.
Check before you invest
- Confirm the company and adviser are authorised by the FSCA (search the FSP register and its warnings list on the FSCA website).
- Check CIPC registration and search the name plus "scam".
- Test a small withdrawal before adding more. If you can't withdraw, stop.
Already invested? Stop paying "fees" to release your money, because that is a second scam. Save every message and wallet address, and report to the FSCA, SAPS and your bank. Beware of "recovery agents" who charge to get your money back.
The simple test: high return plus no risk equals scam.
Running a business? Omnitrace helps you verify every client's identity before you sign, lend or hire. Request a service or call 065 375 6188.
This article is general information, not legal or financial advice.
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