Scam Alert: Financial Sector Watchdog Warns Against WhatsApp

“The said entity uses a WhatsApp group and takes money from the members of the public and promises to trade in forex and when its time to pay back they block you,” the Financial Sector Conduct Authority said in a statement issued on Tuesday.

Worldwide Investments is neither an authorised Financial Services Provider nor a representative of an authorised Financial Services Provider, the FSCA said. There are no records of an application by Worldwide Investments to become one, either, the regulator added.

WhatsApp scams have been in the spotlight recently, with the R200 WhatsApp stokvel making headlines. Many members of the public have complained of joining up, only to be blocked or met with silence when the time came for their payout.

It urged consumers who wish to conduct financial services with an institution or person to check their legitimacy beforehand with the FSCA on either the toll free number (0800 110 443) or online.

The National Stokvel Association of SA (Nasasa) has warned South African consumers that the WhatsApp stokvel likely operates in similar fashion to a pyramid scheme, with only the first few members to join receiving a payout.