Deep Fake Scam Alert: Fraudsters Promise 46% Investment Returns

Recently, the Financial Sector Conduct Authority (FSCA) of South Africa alerted the public to Gold Earnings Hub and Africa Gold Capital for offering financial services without authorization and using deep fake technology to create fraudulent videos and images to promote their services.

According to information received by the regulator, Gold Earnings and Africa Gold offered services without financial authorization and claimed a “46% return” on investments of between R2 000 and R100 000.

Most importantly, the company used the likeness of Patrice Motsepe, the Executive Chairman of African Rainbow Minerals Ltd (ARM), to create images and videos generated by deep fake technology.

In these fraudulent images and videos, “Motsepe” was recommending investment services offered by Gold Earnings and Africa Gold.

ARM has confirmed that neither Motsepe nor his company had any connection with the fraudulent entity and they were considering taking Gold Earnings and Africa Gold to court.

The FSCA emphasised that the imposter were not authorized to provide financial services and advised financial consumers to avoid unnecessary risks by not dealing with unauthorized individuals and entities.

The regulator also warned that South Africans are losing millions every year due to the rising fraudulent schemes. Some of the illegal schemes may appear legitimate, but people can still detect anomalies through key red flags, such as promises of unrealistic returns.