Magnus Heystek: Public figures not liable for deepfake scam losses
Brenthurst Wealth's Magnus Heystek addresses the growing issue of deepfake ads using the likeness of high-profile figures like Johann Rupert and Elon Musk. Heystek argues that holding these figures responsible for gullible investors' losses is unreasonable, emphasizing that the onus remains on individuals to verify legitimacy before investing. Heystek spoke to BizNews editor Alec Hogg.
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BizNews Reporter ___STEADY_PAYWALL___
Scams, Deepfakes, and Investor Responsibility: An Urgent Warning for the Public
In a recent interview, financial expert Magnus Heystek, of Brenthurst Wealth, spoke with host Alec Hogg on the pervasive problem of deepfake advertisements and fraudulent investment schemes. The discussion, prompted by concerns from a BizNews community member, Brian Follett, delved into the growing menace of impersonation scams featuring prominent figures like Johann Rupert, Elon Musk, and Hashim Amla.
The Rise of Deepfake Scams
As technology advances, scammers have found more sophisticated methods to deceive the public. Deepfakes — videos or images digitally manipulated to create realistic but fake content — are increasingly being used to impersonate well-known personalities to promote investment scams. These scams lure unsuspecting individuals with promises of quick returns, often backed by fake endorsements from celebrities and respected business figures.
Heystek was quick to point out that the responsibility cannot fall on the shoulders of these public figures. "It's been well publicized not only in South Africa but globally that scammers are using deepfake technology to create impersonations of well-known individuals to sell fake investment products," Heystek explained. "It is impossible for the likes of Johann Rupert or Elon Musk to know about every fake ad using their likeness."
Can Public Figures Be Held Accountable?
One of the key issues debated during the interview was whether those impersonated in deepfake ads bear any responsibility for alerting the public. Alec Hogg, while agreeing with Heystek's initial stance, pondered whether figures with significant resources could do more to combat these scams.
Heystek argued that while high-profile individuals and corporations may issue warnings, it is practically impossible to keep up with the sheer volume of scams online. "The first time it happens, it's newsworthy," he noted. "But after that, how many more times must you get onto a soapbox and say, 'It's not me'? You can put something on your website, file a complaint with the Financial Sector Conduct Authority (FSCA), but beyond that, it's a never-ending cycle."
The Limitations of Legal Action
Even when scams are identified, pursuing legal recourse can be a futile endeavor. As Heystek highlighted, tracking down the perpetrators often leads to dead ends, particularly when these criminals operate from obscure corners of the world. "You might end up finding the source in a small hovel in Afghanistan, but by the time you get close, they've vanished," he explained.
For the average person, it's unrealistic to expect a public figure to shoulder the burden of constantly policing the internet for fraudulent use of their likeness. However, Hogg raised the point that financial authorities and law enforcement could play a more active role. "If a member of the public can expose these scammers, surely authorities can step in and make arrests," he suggested, advocating for a stronger deterrent to prevent repeat offenders.
Investor Education: A Crucial Defense
A central theme throughout the interview was the need for individual investors to take responsibility for protecting themselves. Heystek emphasized the basics of due diligence, urging potential investors to verify the legitimacy of investment opportunities before parting with their money. "It's investment 101," he stressed. "Go to the FSCA's website, check if the entity is a registered financial services provider, look up reviews, and do your own research."
Heystek expressed frustration with the public's lack of diligence, particularly when it comes to schemes that promise unrealistic returns. He drew an analogy: "It's like playing on a railway track and getting hit by a train, only to claim you didn't know the train was coming. Some things are just obvious."
Despite his sympathy for those who fall victim to scams, Heystek argued that investors often ignore well-established rules of finance. The emotional appeal of quick riches can override common sense, leading individuals to put all their savings into one dubious investment. "I feel for the people who lose money," he said, "but at some point, if you break every rule of investment, you can only blame yourself."
Regulatory Oversight: A Weak Link?
The interview also touched on the challenges faced by regulatory bodies like the FSCA. Even when authorities are aware of fraudulent schemes, enforcing regulations can be a drawn-out process. Hogg recounted a case involving a scam company called Banxso, where despite regulatory warnings, unsuspecting investors continued to be defrauded.
This lack of swift action by authorities only emboldens scammers, Heystek argued. The current legal framework allows these fraudsters to operate with impunity, tying up regulators in legal battles that can last months or even years. Heystek's recommendation was clear: "The media plays a vital role in warning the public, but at the end of the day, the onus is on each person to protect their own interests."
Conclusion: Vigilance Is Key
The interview concluded with a sobering reminder that scams are not a new phenomenon. From the notorious Ponzi schemes of the past to today's deepfake-driven cons, the methods may have evolved, but the fundamental principle remains: if an offer sounds too good to be true, it probably is.
For Heystek, the responsibility lies with both regulators and individuals. While financial authorities must enhance enforcement and oversight, ordinary investors must take the time to educate themselves. As technology continues to evolve, so too will the tactics of fraudsters. The best defense, Heystek maintains, is a vigilant and informed public.
"Scammers will always be there," he concluded. "They'll come and go. But as long as people chase unrealistic returns without doing their homework, there will always be victims."
In a world where deepfakes and online fraud are becoming more sophisticated, Heystek's advice is simple yet powerful: do your research, remain skeptical, and never put all your eggs in one basket.
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