Trading platform AfriMarkets has had its licence provisionally withdrawn and bank accounts and assets frozen due to concerns that its aggressive sales tactics and possible association with deepfake advertisements posed a risk of harm to clients and the public.

However, the stories of its victims are still coming to light.

In January, a client followed up on what turned out to be a deepfake advertisement with claims made by a prominent TV personality about a great investment opportunity.

News24 reports that she was shown graphs illustrating how the rand would deteriorate to R28/$ by the end of the year.

While her initial investment was R5,000.00, she was encouraged to increase it in anticipation of currency-driven gains.

She subsequently invested R490 000 and was then convinced to liquidate a portion of her retirement annuity to increase her trading capacity.

She cashed in R1.3m and paid the after-tax amount of R809 000 to AfriMarkets.

On 24 April, when she attempted to withdraw her funds, she was informed her that if she did, she could lose her money due to the open trades.

At no point was it explained that overnight swap fees were being charged to her open trades, draining her funds. 

News24 notes that she notified the FSCA in April to lodge a complaint, but were told she had to deal with the FAIS Ombud as this was an advice issue.

At this stage, AfriMarkets was already on the FSCA radar, and it is unclear why the regulator did not follow up on her complaint.

In response to queries, AfriMarkets said it is in the process of addressing the concerns raised through the appropriate channels: ‘As legal representatives are now involved, we will be addressing this matter directly with the attorneys on record and will not be providing further updates outside of that process.’

Full News24 report