Anonymous whistleblower exposes Banxso clone scam preying on SA investors

An anonymous whistleblower has come forward with troubling details about Banxso, an online investment platform accused of deceptive practices and linked to deepfake ads featuring well-known personalities like Johann Rupert and Hashim Amla. The whistleblower, a senior figure in the financial sector, described a suspicious encounter with Afrimarket, a platform with striking similarities to Banxso, including an alleged shared chief operating officer. After responding to a Facebook ad, he was pressured to invest without transparency around risk profiling or the expertise of his assigned “advisor.” His findings raise concerns that Afrimarket could be a rebranded clone of Banxso, targeting South Africans with aggressive sales tactics to exploit unsuspecting investors.

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BizNews Reporter

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South Africa’s financial landscape has recently been rocked by revelations surrounding Banxso, an online investment platform that has reportedly been linked to deepfake advertisements and questionable investment practices. BizNews, led by investigative efforts from Chris Steyn and advocate Petra van Niekerk, has been examining allegations surrounding the organization. Their investigation, sparked by a series of deepfake ads featuring prominent figures like Johann Rupert, Elon Musk, and Nicky Oppenheimer, indicates a web of misleading promotions that may have led South Africans to invest—and lose—significant sums.

One anonymous whistleblower, a senior figure in the financial services industry, reached out to BizNews to share his first-hand experience investigating Banxso. He emphasized that he preferred to stay anonymous due to his association with a reputable financial company and the ongoing nature of the investigation.

The whistleblower’s suspicions arose after encountering a Facebook ad featuring South African cricket legend Hashim Amla, apparently endorsing a cryptocurrency investment. Intrigued, he clicked on the ad and was directed to a landing page that prompted him to enter his personal details. Within minutes, he received a call from a representative at “Afrimarket” who introduced him to an investment opportunity. “The whole thing was a hard sell,” the whistleblower explained, detailing how he was urged to deposit an initial amount of R4,500 in exchange for access to an “expert” investor.

Read more: BizNews Briefing – Heystek; Banxso back; Wilgenhof; Police leadership

Questionable Tactics and a Lack of Transparency

During his interactions with Afrimarket, the whistleblower encountered multiple red flags. When he inquired about the qualifications of his assigned “expert,” he was met with resistance and was told that the selection process did not work that way. He persisted, asking if he could interview several potential advisors to assess their qualifications, but was again stonewalled. According to him, the representative failed to provide basic risk profiling or financial wellness information, raising concerns about Afrimarket’s credibility.

The high-pressure tactics left him uncomfortable. “I felt like I was being backed into a corner,” he noted. This suspicion deepened when a second representative contacted him, pressing him to join a Telegram group for additional market insights and webinars, further emphasizing the hard-sell approach.

The whistleblower raised another critical point: upon reviewing Afrimarket’s website, he found it strikingly similar to Banxso’s site. The two platforms seemed to mirror each other, with similar layouts, investor terminology, and even identical chief operating officers—according to the representative he spoke with. Although the representative asserted that Afrimarket was an independent company, the similarities between Banxso and Afrimarket’s operations and tactics painted a different picture.

Are Banxso and Afrimarket Related, or Is This a Copycat Scheme?

The whistleblower’s findings beg the question: Is Afrimarket a clone of Banxso? Or is it possible that Banxso, facing regulatory restrictions, is rebranding itself under a new name to circumvent those restrictions? “The representative claimed the two companies shared shareholders but were otherwise separate,” he said. However, he was unconvinced, particularly after learning that Manuel de Andrade, Afrimarket’s chief operating officer, had previously held a similar role at Banxso.

The similarities between Banxso and Afrimarket extend to their modus operandi, according to the whistleblower. Both employ aggressive marketing tactics, promise high returns, and reportedly lack transparency. “There’s no regard for the investor’s financial health or knowledge level. It’s simply about extracting as much as possible,” he noted, adding that many South Africans unfamiliar with high-risk investments could easily fall victim to these schemes.

In his opinion, Afrimarket’s approach resembles a “copy and paste” of Banxso’s business model, raising alarm about the growing risks faced by local investors.

Read more: Ian Cameron addresses SAPS audit and controversial BELA Bill

Regulatory Scrutiny and the Path Forward

Alec Hogg, BizNews editor and chief investigator, affirmed that regulatory authorities are likely to intensify their scrutiny. The Financial Sector Conduct Authority (FSCA) and other oversight bodies have been notified of Banxso’s practices. The extent of Afrimarket’s affiliation with Banxso is still unclear, but the mounting evidence suggests that a more thorough investigation is warranted.

As the investigation unfolds, South African investors are urged to exercise caution. Scams disguised as legitimate investments are increasingly sophisticated, with elaborate marketing campaigns and deepfake endorsements lending them a veneer of credibility. Those considering investment opportunities should verify the legitimacy of platforms and the qualifications of advisors, seek independent advice, and refrain from making hasty decisions based on high-pressure sales tactics. The whistleblower’s testimony underscores the need for vigilance in the face of persistent and evolving threats to investor security.

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