Scam turns to blackmail

BANXSO: FRAUDSTERS THREATEN TO DISTRIBUTE NUDE IMAGES - VICTIM

- Ryk van Niekerk

The underworld of financial scammers is becoming increasingly sophisticated and far more aggressive. In some cases, they have resorted to extortion, including threats to distribute nude images of victims to force them into withdrawing criminal complaints.

Since early last year, Moneyweb has uncovered how Banxso, licensed by the SA Financial Sector Conduct Authority (FSCA), benefited directly from a wave of fraudulent social media advertisements. Despite Banxso's repeated denials of any links with the ads, the FSCA provisionally suspended its licence in October.

However, shortly thereafter, a new and more insidious scam surfaced.

Posing as officials from regulators like the British Financial Conduct Authority (FCA), fraudsters began contacting Banxso victims with a pitch: the money they lost had been invested in cryptocurrency. The funds, they claimed, had also grown significantly due to the recent surge in cryptocurrency prices.

They offered refunds subject to a "processing fee" or commission.

The FSCA issued a warning regarding this scam early this year. Banxso denied any links.

Maria

A former Banxso client contacted Moneyweb and provided an alarming account of how her interaction with the scammers led to more than R200 000 being stolen from her bank account.

The individual has asked to remain anonymous for obvious reasons. Let's call her Maria.

Maria's nightmare began when she responded to a fake advertisement and became a Banxso client. However, after losing some money, she realised the platform was risky and closed the account.