Fake investment and crypto advisers: the call that promises big returns

Fake investment and crypto advisers: the call that promises big returns

The phone rings and a friendly, professional voice tells you about an opportunity: investing in crypto, forex or "AI trading" with returns no bank will ever give you. Sometimes the call comes after you left your details on an ad featuring a famous businessperson or a TV presenter; other times it comes out of nowhere. This is the fake investment adviser scam, one of the phone frauds that takes the most money per victim. The first thing to know: no legitimate financial services provider cold-calls you to guarantee high, risk-free returns.

How does the scam work?

It almost always follows the same script, in stages designed to draw you in little by little:

1. The hook. An ad on social media or a site imitating a news website, with a celebrity "recommending" a platform, or a cold call. They ask for your name, number and email "so an adviser can contact you".
2. The small first investment. The adviser asks for a few thousand rand "to open the account". It is not a huge amount and it sounds reasonable.
3. The fake profits. You get access to a platform with charts and a balance that grows day after day. It is all a website they control: the numbers do not match any real investment. Sometimes they even let you withdraw a small amount to win your trust.
4. The pressure to invest more. Frequent calls, a "senior account manager", opportunities that "close today". They encourage you to take out a loan, use your savings or install a remote access app (AnyDesk, TeamViewer or similar) "to help you with the trades".
5. The lockout. When you try to withdraw, suddenly tax, fees or "guarantee deposits" must be paid first. Whatever you pay, the money never comes out.

What is the recovery scam?

It is the second scam, and it arrives once you have already lost money. You are contacted by a supposed law firm, a "recovery agency", someone pretending to be from a regulator or even a police officer. They know how much you lost and on which platform, because they are often the same scammers or have bought your details.

They promise to get your money back in exchange for an upfront payment: fees, court costs, a "bond" or a "release tax". It is a trick: no police unit or regulator charges you to recover your money, and no serious firm guarantees the outcome before starting.

What are the red flags?

• High, guaranteed returns. In real investments, higher returns mean higher risk. "Risk-free" and "guaranteed" are scam words.
• Calls you did not ask for, or calls that arrive after you filled in a form on a celebrity ad.
• Constant urgency: "the opportunity closes today", "if you don't get in now you lose the bonus".
• A request to install a remote access app on your phone or computer.
• Payments in crypto, transfers to foreign accounts or to individuals, never to an identifiable institution.
• You are asked to pay in order to withdraw your own money.
• Secrecy: "don't tell your bank, they don't understand this".
• The firm is not on the official register. In South Africa, anyone giving financial advice or selling financial products, including crypto asset services, needs authorisation from the Financial Sector Conduct Authority (FSCA), which also publishes warnings about unregistered entities.

What do I do if they're calling me right now?

1. Do not give any details and do not agree to "just find out more". Hang up politely and without explanations.
2. Do not install anything they ask you to, especially remote access apps.
3. Do not send money or crypto, not even the "small test amount".
4. Check the firm yourself on the FSCA's list of regulated entities, searching for the exact name and FSP number. Also check that the contact details match those on the register: scammers sometimes clone the name of a real, licensed firm. If it is not listed as authorised, stop there.
5. Block the number and report it in the spam numbers directory so that others recognise it.
6. If you are unsure, ask your own bank by calling the official number on your card or in its app.

What if I've already invested or paid?

Do not blame yourself: these networks use very polished scripts and fool people with financial training. What matters is acting fast:

1. Stop paying. No tax, no withdrawal fees, no "final transfer". Every extra payment is money lost.
2. Uninstall any remote access app and, from another trusted device, change the passwords for your online banking and your email. Switch on two-step verification.
3. Call your bank's fraud line on its official number. Explain what happened, ask them to block cards or pending payments and ask what claim options there are.
4. Gather evidence: screenshots of the platform, emails, chats, phone numbers, proof of payment, crypto wallet addresses and transaction hashes.
5. Open a case at your nearest police station (SAPS) with all of the above and ask for the case number.
6. Report the firm to the FSCA, especially if it claimed to be authorised or used the name of a real provider.
7. If you used a legitimate crypto exchange to send the money, tell them too: sometimes they can flag the receiving addresses.

You will find more about getting money back on our blog.

How do I avoid the second scam?

After losing money you become a priority target. Keep in mind:

• Be wary of anyone who contacts you offering to recover your money without you looking for them, especially if they know details of your case.
• The police do not phone to charge you. They will never ask you for money, crypto or to install anything to give back what you lost.
• Do not pay upfront to anyone who guarantees recovery.
• If you want legal advice, find an attorney yourself, check that they are admitted and in good standing with the Legal Practice Council, and ask for a written quote.

Frequently asked questions

I saw the ad with a well-known personality. Isn't that a guarantee? No. Scammers use public figures' images without permission, with fake news stories and even manipulated videos. A celebrity in an ad for a miracle investment is a red flag, not a sign of trust.

They let me withdraw a little money at the start, so is it real? That is part of the script. A small withdrawal costs the scammers little and helps convince you to invest much more later.

Can I get back what I sent in crypto? It is hard, but reporting early and providing the addresses and transactions improves the chances. Be wary of anyone who assures you they can do it for an upfront fee.

They call from a local 011 or 021 number. Does that mean the firm is in South Africa? No. Numbers are easy to spoof or rent. The area code tells you nothing about who is behind the call.

In short

When a call promises high returns: hang up, do not install anything, do not pay and check the firm on the FSCA register. If you have already paid, stop, tell your bank, keep evidence and open a case. And if someone later offers to recover your money for an upfront fee, it is the same scam in a different disguise. NoCall helps you identify reported numbers before you answer; if you get one of these calls, report it in the NoCall spam numbers directory so it does not catch anyone else.