A group of suspected international online scammers was apprehended yesterday by a multi-agency global law-enforcement task team led by the Directorate for Priority Crime Investigation (the Hawks) in Bryanston, Johannesburg.
The arrests come amid warnings from local cyber security experts of a rise in online scams in South Africa and globally.
In a statement, the South African Police Service (SAPS) says six alleged bogus investment scammers, together with 25 call centre agents, were arrested on Tuesday for contravening the Financial Advisory and Intermediary Services Act.
The suspects, aged between 38 and 61, were arrested during a joint takedown operation conducted by members of the Gauteng Hawks’ Serious Commercial Crime Investigation, Hawks’ Priority Crime Specialised Investigation, Hawks’ Tactical Operations Management Section, Gauteng Tactical Response Team, Hawks Legal Services, Hawks Communication Services, Gauteng Crime Intelligence, Gauteng Local Criminal Record Centre, SARS Forensic Investigation, Interpol, South African Banking Risk Information Centre, Standard Bank and First National Bank.
Interpol IPSG, based in Lyon, France, deployed a senior representative from its International Financial Crimes and Anti-Corruption Directorate under Interpol’s global Operation Jackal, which focuses on combating online scams and transnational financial crimes.
SAPS notes the arrests stem from an investigation initiated in 2022 by members of the Gauteng Hawks’ Serious Commercial Crime Investigation team.
Team effort
It adds that the investigation was triggered by statements provided by 43 victims from Australia, which enabled the Hawks, in collaboration with Interpol and international law-enforcement partners, to mount a coordinated operation.
It is alleged the syndicates advertised bogus investment opportunities through various social media platforms, targeting victims who were close to retirement age and in possession of substantial savings, seeking growth and preservation of their funds.
According to SAPS, the suspects allegedly operated fraud “boiler-room” call centres, utilising call centre agents to communicate with victims online.
Victims were initially persuaded to make small online investments, which falsely reflected high returns.
Communication between the agents and victims would then continue via platforms such as Skype, Messenger, Zoom and WhatsApp, until victims were convinced to invest larger sums of money.
The syndicates allegedly operated these illegal activities from both Gauteng and the Western Cape. The criminal activities spanned several jurisdictions, with victims primarily identified in Australia, the UK, the US, Canada and New Zealand.
It is further alleged that the syndicates registered multiple companies to facilitate the leasing of premises where the criminal activities were conducted.
SAPS says to conceal their operations, the suspects would allegedly change locations every three to six months, along with their registered company entities. These entities were also allegedly used to open and operate banking facilities, it notes.
The syndicates are further accused of using slick brand names, professional-looking logos, sophisticated websites with client login portals, fictitious press releases, fabricated marketing material and false testimonials to create the illusion of legitimate and lucrative investment platforms.
SAPS says as a result of these fraudulent activities, more than 40 victims were prejudiced, suffering losses amounting to undisclosed millions of rands.
Investigations into the matter are still ongoing, says SAPS, adding that the suspects are expected to appear before the Palm Ridge Specialised Commercial Crimes Court today.
Major general Ebrahim Kadwa, provincial head of the Hawks in Gauteng, commended the swift response and capability of the Hawks, and the close collaboration between local and international law enforcement agencies and private-sector partners, in successfully identifying, detecting and dismantling a transnational fraud syndicate operating within SA, despite its victims being based abroad.
Tricky business
Commenting on the arrests, Jason Jordaan, principal forensic scientist at DFIR Labs, says bogus investment schemes of this kind are, unfortunately, commonplace in SA and across the world.
“These schemes are typically not the work of lone opportunists but of organised criminal groups and syndicates, deliberately engineering ‘too good to be true’ investment opportunities designed to exploit human vulnerability rather than financial opportunity.”
Jordaan notes that in the current economic climate, desperation becomes an accelerant. “People under financial pressure, looking for a way to improve their circumstances, are far more susceptible to promises of quick or exceptional returns. The perpetrators of these schemes understand this perfectly. They are persistent, highly practised, and often exceptionally skilled in social engineering. Convincing someone to engage is not accidental; it is the product of rehearsed manipulation.
“While precise statistics are difficult to come by, the investigative reality paints a clear picture. These schemes claim far more victims than official numbers ever reflect. Many victims never report their losses, most commonly because of embarrassment or shame. Silence, in this context, becomes another tool that protects the perpetrators.
“Throughout my investigative career, one principle has remained consistently reliable, and it is advice worth repeating plainly: if something looks too good to be true, it is. Any investment offering rapid or multi-digit returns should immediately trigger suspicion. Whether people want to believe it or not, that is simply not how legitimate investments work. There are no shortcuts, and there are no get-rich-quick schemes.”
Jordaan adds that what makes these schemes particularly troubling is not only their scale, but their target selection.
“They disproportionately prey on those who are financially inexperienced or economically desperate. And the uncomfortable truth is this: the individuals and syndicates behind these scams have no concern whatsoever for the harm they cause. The losses suffered by victims are, to them, nothing more than a line item in a criminal business model.”
Long con
Anna Collard, SVP of content strategy and evangelist at KnowBe4 Africa, observes that there has been a shift globally (not just in SA) from opportunistic fraud to highly-organised, professionalised scam operations. These are often run like call centres (in some cases even in combination with human trafficking victims being forced to commit these crimes) following playbooks that dictate how to use social media advertising, data profiling and psychological manipulation.
She adds that the scammers are also being supported by artificial intelligence-empowered platforms, such as LoveGPT, providing the perfect manipulating content for romance and investment scamming, or the ability to create slick and professional looking investment tools and sites.
“These groups also play the long game, sometimes manipulating and prepping targets for months, even giving them their initial returns, before hitting them with the larger investment ‘opportunity’.
“These scams target a perfect storm – economic pressure, retirement anxiety and the desire for financial security. Criminals are no longer relying on crude tactics; they use polished websites, confident ‘advisors’ and emotionally persuasive narratives that feel legitimate, especially to people who are nearing retirement and trying to protect what they’ve worked for their whole lives.”
Collard urges that protection from scammers starts with mindset as much as technology. “From a digital mindfulness perspective, the most important rule is to apply a zero-trust mindset to any unsolicited investment opportunity, no matter how professional or convincing it sounds. These decisions should never be made when emotionally triggered − especially not by a new love interest or new friend made online.”
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