In this eye-opening BizNews Briefing interview, a victim of the Banxso investment scheme reveales how they were lured by promises of high returns and reassurances from “financial experts.” Through emotional testimonials, they describe the intense pressure and deceptive tactics that led them to invest their savings, only to face devastating losses. This interview sheds light on the human cost of financial scams, as survivors share their experiences and offer warnings to those navigating the world of online investments.
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By BizNews reporter
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South Africans have recently been taken for millions by an investment platform called Banxso, which used deceptive methods to reel in investors. From deepfake ads featuring the likes of Johann Rupert, Elon Musk, and Nicky Oppenheimer to a coordinated pressure campaign involving calls from “success managers,” Banxso went to extreme lengths to paint itself as a legitimate and profitable trading service. However, many of those who invested soon found themselves financially devastated, trapped in a scheme with no way out.
Earlier this month, the Financial Services Conduct Authority (FSCA) announced an investigation into Banxso. Suspended from trading, the platform has been publicly condemned as a fraudulent operation. Whistleblowers have come forward to expose how the scheme manipulated their trust and led them to make risky and ill-fated investments.
One of the victims, whom we’ll call “Claire,” shared her harrowing experience on BizNews. Attracted initially by the platform’s promises, Claire recounted the relentless pressure she faced after clicking on a Facebook ad featuring Elon Musk. She received an immediate phone call from an individual named Mr. Abrahams, who used high-pressure tactics to convince her to invest a small amount of R4,500, with the promise of an R1,500 bonus. Over the next few days, she was gradually manipulated into depositing her life savings, nearly half a million rand, with “managers” encouraging her every step of the way.
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Each day, she was pushed to invest more with promises of exclusive opportunities and reassurance from so-called “trading experts.” Even when she grew suspicious and tried to withdraw her money, Claire was met with stalling tactics, excuses, and a cold reminder that without additional deposits, she’d lose everything. Finally, after a whirlwind week of transactions, Claire woke up to find her account closed, with no means of recourse.
The deepfake ads that launched this scam on Facebook and other social media platforms portrayed a sense of legitimacy by associating Banxso with prominent South African figures. Banxso’s representatives even told investors that they could visit their “head office” at a listed Cape Town address, which turned out to be nothing more than an empty space with a plaque.
Banxso’s collapse is a stark reminder of the need for caution in digital investments, especially as scammers continue to use sophisticated technology and social engineering tactics. In light of these events, the FSCA urges potential investors to verify the legitimacy of financial institutions through official channels and remain cautious of unsolicited investment offers that guarantee large, risk-free returns.
For victims like Claire, recovery is a long and uncertain process. After reporting her case to the police and Discovery Bank, she has also contacted news outlets in hopes of preventing others from falling prey to similar schemes. If you or someone you know is considering an investment opportunity, especially one offering quick profits, think twice and research thoroughly—if something sounds too good to be true, it usually is.
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