Fake forex offers, questionable loans: FSCA issues consumer warning

The FSCA has issued warnings against Discovery Online Trade Plus, Halifax Loans SA and individuals allegedly using Aeon Investment Management's identity to promote forex trading.

The Financial Sector Conduct Authority (FSCA) has warned South Africans about three operations allegedly using the identities and registration details of legitimate financial businesses to target consumers with investment, forex trading and loan offers.

The warnings, issued on November 6, concern Discovery Online Trade Plus, Halifax Loans SA and individuals allegedly using the identity of authorised financial services provider Aeon Investment Management to promote forex trading through WhatsApp.

In a separate regulatory action announced a day earlier, the FSCA also made the withdrawal of financial services provider Mixirite's licence final, following preliminary investigation findings that included aggressive sales tactics, promises of unrealistic or guaranteed returns and governance concerns.

The developments highlight the risks facing consumers when dealing with online financial offers, including operations that use the credentials of legitimate businesses to create an appearance of credibility.

The regulator identified three operations that it said were not authorised to provide financial services and had no association with the legitimate businesses whose details they allegedly used.

The FSCA said Discovery Online Trade Plus was allegedly presenting itself as an authorised financial services provider and using the Financial Services Provider (FSP) number of Gikuyu Brokers Investments, which is registered under FSP number 51424.

Gikuyu Brokers confirmed that it had no association with Discovery Online Trade Plus.

The regulator said the operation was not authorised to provide financial services. It also said it could not contact the business because no contact details were available.

Halifax Loans SA allegedly presented itself as being affiliated with Halifax Insurance Brokers, an authorised financial services provider with FSP number 9998.

The operation allegedly used the broker's details when offering loans to members of the public.

Halifax Insurance Brokers confirmed that it had no association with Halifax Loans.

The FSCA said Halifax Loans was not authorised to provide financial services and that it had been unable to contact the business.

The third warning concerns individuals allegedly using the name, physical address and company registration number of Aeon Investment Management to promote forex trading through a WhatsApp group.

Aeon Investment Management is an authorised financial services provider with FSP number 27126.

The company confirmed that it was not associated with the individuals. The FSCA said the individuals had not responded to its enquiries.

The FSCA has urged consumers to be particularly cautious about unsolicited investment and trading offers, especially those circulated through social media platforms.

The regulator highlighted several warning signs that consumers should look out for, including:

Promises of unrealistic or exaggerated investment returns.

Demands for additional money to release an investment.

Offers of paid training linked to investment or trading opportunities.

Pressure to make financial decisions urgently.

Consumers should also be wary of businesses claiming to be associated with authorised financial services providers without independently verifying the relationship.

Consumers can use the FSCA's online Financial Services Provider search to establish whether a company or individual is authorised to provide financial services.

The regulator also advises consumers to check authorisation details before accepting financial advice, assistance or investment offers.

If a provider's authorisation status is not clearly displayed, consumers should investigate further before making any payments.

The FSCA's toll-free number is 0800 110 443.

The warnings against the three operations came shortly after the FSCA finalised the withdrawal of Mixirite's financial services provider licence, number 52110, with immediate effect.

The regulator provisionally withdrew the licence on June 24, 2026, following preliminary findings in an ongoing investigation.

Mixirite was given an opportunity to make representations and did so. While the company did not oppose the provisional withdrawal becoming final, it disagreed with the investigation's preliminary findings.

According to the FSCA, the preliminary findings included allegations that Mixirite agents used aggressive, manipulative and high-pressure sales techniques.

The investigation also found that people who were not authorised representatives had provided financial advice.

Other concerns included promises of unrealistic or guaranteed returns, failures to conduct appropriate suitability and needs analyses, inadequate risk disclosures and significant governance shortcomings.

After considering the findings and Mixirite's submissions, the regulator decided to make the licence withdrawal final.

The FSCA said it believed the company had materially contravened financial sector laws and no longer met the fit and proper requirements to operate as a financial services provider.

The regulator's broader investigation has also been expanded to include Complyxpert, Start Stream, Rayn Investments and Advice 365, as well as key persons associated with those businesses.

The investigation is examining possible contraventions of the Financial Advisory and Intermediary Services Act.

The FSCA said it could not provide further details while the investigation remained ongoing.

The latest warnings come amid growing regulatory attention on how consumers are targeted through digital financial services.

In its second annual report, covering April 2025 to March 2026 and published on November 5, the FSCA's Consumer Advisory Panel highlighted artificial intelligence, digital fraud, deepfake technology, online trading platforms and financial influencers among its key areas of focus.

Established in November 2023, the panel provides consumer-focused insights and recommendations to inform the regulator's work. It also considers protections for vulnerable consumers, including social grant beneficiaries.

Panel chairperson Brendan Pearce said financial services should be assessed not only on whether consumers could access them, but also on whether they delivered fair value and positive outcomes.

As the financial services sector evolves, Pearce said, consumer interests and needs must remain central.

The FSCA has urged consumers to verify the authorisation of financial services providers before engaging with them and to investigate any suspicious offers before handing over money.