FSCA Enforcement Update: Fraud, Deepfakes and What It Means for You
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The Financial Sector Conduct Authority (FSCA) is stepping up enforcement efforts. In its latest report, the FSCA revealed it imposed 51 penalties worth nearly R120 million and debarred 131 individuals in the year ending March 2025.
Social Media Fraud: A New Battlefield
The FSCA identified misuse of social media as a top enforcement priority. Scammers often impersonate celebrities or regulators to promote fake investment schemes, sometimes using AI-generated videos and deepfakes. Fraud scenarios include:
Impersonation scams: Fraudsters posing as FSCA officials or celebrities to lure investors.
Deepfake content: Use of AI-generated voice or video mimicking trusted individuals to push fake investment opportunities.
Fake signals: Phony “insider tips” or endorsement signals circulating on WhatsApp, LinkedIn, or Telegram to bait victims .
FSCA’s Response
107 public warnings were issued—averaging more than two per week—mostly against unregistered entities and deepfake-style schemes.
Collaboration expanded with local law enforcement, including the Hawks and NPA, plus international regulators and social platforms.
One case alone saw R68 million in fines for investing client funds into unregulated ventures.
382 licences were withdrawn and 24 suspended, mostly for failing to submit statutory returns.
Why It Matters for Accountants
Ensure clients aren’t being groomed by deepfake scams—advise them to verify all unasked-for investment opportunities.
Supporting unregistered advisors can risk your reputation and may trigger obligations if payments are found to be linked to fraud.
Advise clients to be watch for red flags such as “too-good-to-be-true” tips on social media, unusual verification requests, or calls/messages from purported FSCA officials.
Bottom Line
With fraudsters getting tech-savvy, the FSCA is stepping up, issuing warnings, debarments, and building partnerships to unearth and prosecute offenders. If you're advising clients or working with intermediaries, ensuring FSCA registration and vigilance against deepfake scams is now part of essential due diligence.
Source article: Moneyweb
