GAUTENG – Police have arrested 31 people in connection with an alleged international investment scam that defrauded victims of millions of rands, targeting those approaching retirement age.
The suspects, comprising six alleged bogus investment scammers and 25 call-centre agents aged between 38 and 61, were arrested yesterday (Tuesday 27 January) in Johannesburg during a joint operation involving multiple agencies.
The operation was conducted by the Gauteng Hawks’ Serious Commercial Crime Investigation unit, working alongside Interpol, the South African Banking Risk Information Centre, and major banks including Standard Bank and First National Bank.
According to a police statement, Interpol deployed a senior representative from its International Financial Crimes and Anti-Corruption Directorate as part of Operation Jackal, which focuses on combating online scams and transnational financial crimes.
Sophisticated deception tactics
According to the statement, the alleged syndicate advertised fake investment opportunities through social media platforms, specifically targeting people close to retirement who possessed substantial savings seeking growth and preservation of their funds.
Police allege the suspects operated fraud “boiler-room” call centres, using agents to communicate with victims online.
Victims were initially persuaded to make small investments which falsely showed high returns, before being encouraged to invest larger sums through platforms including Skype, Messenger, Zoom and WhatsApp.
To create the illusion of legitimacy, the syndicates allegedly used professional brand names, sophisticated websites with client login portals, fictitious press releases, fabricated marketing materials and false testimonials.
The criminal network allegedly operated from both Gauteng and the Western Cape, changing locations every three to six months along with their registered company entities to conceal their activities.
International victims identified
The investigation, which began in 2022, was triggered by statements from 43 victims in Australia. However, the criminal activities spanned several jurisdictions, with victims primarily identified in Australia, the United Kingdom, the United States, Canada and New Zealand.
More than 40 victims suffered losses amounting to undisclosed millions of rands as a result of the fraudulent activities, according to police.
The suspects face charges of contravening the Financial Advisory and Intermediary Services Act.
Major General Ebrahim Kadwa, provincial head of the Hawks in Gauteng, commended the collaboration between local and international law-enforcement agencies and private-sector partners in dismantling the transnational fraud syndicate.
Investigations into the matter continue.
