Stranger danger!

When it comes to scams, the first sign of danger is when a stranger or someone you don’t know personally offers you investment expertise out of the blue. In the social media age, our community of investors help each other out by sharing their experiences – but be careful of people who promise to take your money and invest it for you. Especially if they’re promising quick, and of course great, rates of return.

1. Do not give someone your money if they cannot show you where and how they will invest your money
   
   EasyEquities prides itself on transparency, and our app and website is a DIY (Do It Yourself) platform which means you would have complete sight of your investments. From opening an account, making a deposit, to choosing the investment for you. Even if you are dealing with an asset manager they will share the investments they will make or have made on your behalf if you request it. Which leads us to the next point…
   
   
2. We advise that you open your own EasyEquities account
   
   Or at the least get someone you know and completely trust to open the account for you if you are unable to. As long as it is in your name, you can verify the details on the account at any time you want because you can log in anytime you want and look through the account.
   All details you register on the account must be true to you and your identity – your names, identification, physical and email addresses, tax numbers, and personal details. Your money, your account, that’s the principle.
   
   
3. If it sounds too good to be true, it likely is
   
   Strangers and scammers (and sometimes those shifty family members) are often the source of deals that sound incredible. We’ve all seen them – pyramid scams, Triple M, they are endless. Scrutinise the deal they’re offering first and then consider the source of the deal on offer.
   These should help you gauge whether it is a scam or the type of ‘opportunity’ at hand. If it sounds too good to be true or it’s a ‘secret’ then it’s a red flag. Legitimate investing and even stock markets have been around for centuries and are even regulated.
   
   
4. Check if you’re dealing with an authorized financial service provider (FSP)
   Legitimate financial organisations are governed by the FSCA (Financial Sector Conduct Authority) in South Africa, with other international financial services companies being watched over by their own countries’ governing bodies.
   
   The FCSA licenses organisations, and if a company you have been dealing with cannot provide reference to their license (i.e FSP number) then that’s a red flag. You can also check or reference an FSP number via the FSCA website.

    

Make sure to check out our other articles on avoiding scammers!

If you receive such an email or an unsolicited call, email, text or a social media post from anyone claiming to be from EasyEquities, please either contact us via submitting a support ticket. One of our agents will get back to you.